• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Privatization: principles
        • Ownership and economic efficiency
        • Privatization and public finance
        • Privatization and distribution
      • Privatization in practice
        • Privatization worldwide
        • Privatization in Britain
        • Methods of sale
        • Regulation
        • Industry restructuring
        • Liberalization of competition
        • The performance of privatization
    • See Also
    • Bibliography
    • How to cite this article


John Vickers
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
Alternate versions available: 1987 Edition
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Privatization is the transfer from government to private parties of the ownership of firms. Privatization programmes have been carried out worldwide since the mid-1980s, with important consequences for economic efficiency, public finance, and distribution. In competitive industries privatization generally has positive effects on incentives and performance. The economic consequences of privatizing firms with market power depend on the effectiveness of regulation and competition policy. These points are illustrated by experience in Britain, a leading exponent of privatization policies.
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How to cite this article

Vickers, John. "privatization." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 17 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_P000193> doi:10.1057/9780230226203.1343

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