Journal
ECONOMIC JOURNAL
Volume 113, Issue 486, Pages C69-C76Publisher
BLACKWELL PUBL LTD
DOI: 10.1111/1468-0297.00119
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The question of what should determine the boundaries between public and private firms in an advanced capitalist economy is a highly topical one. In this paper I discuss some recent theoretical thinking on this issue. I divide the paper into two parts. First, I make some general remarks about the relationship between the theoretical literature on privatisation and incomplete contracting theories of the firm. Second, I use some of the ideas from this literature to develop a very preliminary model of public-private partnerships.
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