Bank Privatization in Argentina: A Model of Political Constraints and Differential Outcomes

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World Bank, Development Research Group, Regulation and Competition Policy and Finance, 2001 - Bancos - Argentina - 32 pages
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In describing outcomes, the literature on privatization has paid little attention to politicians' incentives, perhaps because it lacked the kinds of evidence needed to do so. Evidence from the privatization of provincial Argentine banks in the 1990s indicates that transaction contract features vary systematically with proxies for politicians' incentives. Will variation in transaction features have implications for post-privatization performance?

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