ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION
This paper discusses a portfolio endowment policy as an alternative to conventional privatization policies. The portfolio endowment policy endows each citizen with a financial instrument representing a portfolio of state-sponsored enter...
| Main Author: | |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/1847 |
| _version_ | 1826197391308488704 |
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| author | Hartnett, William |
| author_facet | Hartnett, William |
| author_sort | Hartnett, William |
| collection | MIT |
| description | This paper discusses a portfolio endowment policy as an alternative to conventional
privatization policies. The portfolio endowment policy endows each citizen with a
financial instrument representing a portfolio of state-sponsored enterprises. The policy
is analyzed in terms of efficiency and fairness. Potential efficiency advantages include
easier logistics (since the endowments are automatic) and financial diversification (due
to the portfolio effect), although specific cases where the policy is not a theoretical
optimum are demonstrated. Fairness results from equality of opportunity for all
citizens, avoiding the worsening inequality and public opposition associated with
conventional privatization policies. Feasibility is also addressed, including effective
corporate governance for a wide shareholder base. This policy analysis demonstrates
that the portfolio endowment policy is feasible, with important potential benefits, and
merits serious consideration. It concludes with a topical application in the Mideast
relevant to international peace and secu |
| first_indexed | 2024-09-23T10:47:18Z |
| format | Working Paper |
| id | mit-1721.1/1847 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T10:47:18Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/18472019-04-12T08:22:50Z ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION Hartnett, William Privatization portfolio endowment citizenry efficiency diversification utility theory information theory equity inequality fairness corporate governance employee remuneration stock options South Africa Mideast Public support This paper discusses a portfolio endowment policy as an alternative to conventional privatization policies. The portfolio endowment policy endows each citizen with a financial instrument representing a portfolio of state-sponsored enterprises. The policy is analyzed in terms of efficiency and fairness. Potential efficiency advantages include easier logistics (since the endowments are automatic) and financial diversification (due to the portfolio effect), although specific cases where the policy is not a theoretical optimum are demonstrated. Fairness results from equality of opportunity for all citizens, avoiding the worsening inequality and public opposition associated with conventional privatization policies. Feasibility is also addressed, including effective corporate governance for a wide shareholder base. This policy analysis demonstrates that the portfolio endowment policy is feasible, with important potential benefits, and merits serious consideration. It concludes with a topical application in the Mideast relevant to international peace and secu 2003-03-28T20:48:58Z 2003-03-28T20:48:58Z 2003-03-28T20:48:58Z Working Paper http://hdl.handle.net/1721.1/1847 en_US MIT Sloan School of Management Working Paper;4252-02 1024405 bytes application/pdf application/pdf |
| spellingShingle | Privatization portfolio endowment citizenry efficiency diversification utility theory information theory equity inequality fairness corporate governance employee remuneration stock options South Africa Mideast Public support Hartnett, William ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title | ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title_full | ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title_fullStr | ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title_full_unstemmed | ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title_short | ENDOWING CITIZENS WITH A PORTFOLIO OF STATE-SPONSORED ENTERPRISES FOR EFFICIENT AND EQUITABLE PRIVATIZATION |
| title_sort | endowing citizens with a portfolio of state sponsored enterprises for efficient and equitable privatization |
| topic | Privatization portfolio endowment citizenry efficiency diversification utility theory information theory equity inequality fairness corporate governance employee remuneration stock options South Africa Mideast Public support |
| url | http://hdl.handle.net/1721.1/1847 |
| work_keys_str_mv | AT hartnettwilliam endowingcitizenswithaportfolioofstatesponsoredenterprisesforefficientandequitableprivatization |