Seminario “Take The Money And Run? The Consequences Of Controversial Privatizations” (with Mounu Prem and Francisco Urzúa)

Presenta: Felipe González (PUC) Lugar y hora: Miércoles 23 de Mayo de 2018, 13:00 hrs. Sala P 301, Edificio Placa (Diagonal Paraguay 257)
Privatization reforms are plagued by controversies regarding sale prices and buyer identity. However, little is known about the subsequent behavior of firms privatized in controversial processes. This paper studies rent seeking behavior of firms privatized by the Pinochet regime in Chile. Using several novel datasets, we characterize privatizations using a data driven algorithm, confirming that some state owned firms were sold underpriced to politically connected individuals, i.e. as controversial. We then compare the rent seeking behavior of similar firms that were privatized differently and find that firms with controversial privatizations benefitted from the Pinochet regime, changed their ownership structures, formed strategic political connections, financed political campaigns, and were more likely to appear in the Panama Papers. These results suggest that firms with controversial privatizations engage in rent seeking and reveal how authoritarian regimes can influence the economy and politics even after a regime change.

Datos del Evento

Fecha de inicio:
23 de Mayo, 2018 | 13:00 hrs.

Fecha de término
23 de Mayo, 2018 | 14:00 hrs.