Public and Private Enterprise in a Mixed Economy: Proceedings of a Conference held by the International Economic Association in Mexico City PDF
Preview Public and Private Enterprise in a Mixed Economy: Proceedings of a Conference held by the International Economic Association in Mexico City
PUBLIC AND PRIVATE ENTERPRISE IN A MIXED ECONOMY INTERNATIONAL ECONOMIC ASSOCIATION PUBLICATIONS Monopoly and Competition and their Regulation The Economic Consequences of the Size of Nations The Theory of Capital Inflation The Economics ofTake-o!Tinto Sustained Growth International Trade Theory in a Developing World The Theory of Interest Rates The Economics of Education Problems in Economic Development Price Formation in Various Economies The Distribution of National Income Risk and Uncertainty Economic Problems of Agriculture in Industrial Societies International Economic Relations Backward Areas in Advanced Countries Public Economics Economic Development in South Asia North American and Western European Economic Policies Planning and Market Relations The Gap Between Rich and Poor Nations Latin America in the International Economy Models of Economic Growth Science and Technology in Economic Growth Allocation under Uncertainty Transport and the Urban Environment The Economics of Health and Medical Care The Management of Water Quality and the Environment Agriculture Policy in Developing Countries The Economic Development of Bangladesh Economic Factors in Population Growth Classics in the Theory of Public Finance Methods of Long-term Planning and Forecasting Economic Integration The Economics of Public Services The Organisation and Retrieval of Economic Knowledge The Microeconomic Foundations of Macroeconomics Economic Relations between East and West Econometric Contributions to Public Policy Appropriate Technologies for Third World Development Economic Growth and Resources (5 volumes) Public and Private Enterprise in a Mixed Economy Proceedings of a Conference held by the International Economic Association in Mexico City EDITED BY WILLIAM J. BAUMOL M © International Economic Association 1980 Softcover reprint of the hardcover 1st edition 1980978-0-333-28319-6 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission First published 1980 by THE MACMILLAN PRESS LTD London and Basingstoke Companies and representatives throughout the world Typeset in Great Britain by PINTAIL STUDIOS LTD Ringwood, Hampshire British Library Cataloguing in Publication Data Public and private enterprise in a mixed economy (International Economic Association. Symposia) l. Industry and state - Congresses 2. Government business enterprises - Congresses I. Baumol, William Jack II. Series 338.7 HD36ll ISBN 978-1-349-16396-0 ISBN 978-1-349-16394-6 (eBook) DOI 10.1007/978-1-349-16394-6 Contents List ofP articipants vii Introduction William J. Baumol ix THE ISSUES Public or Private Enterprise-The Issues to be Considered Nicholas Kaldor 1 Discussion 13 PART ONE LESS DEVELOPED COUNTRIES AND THE ROLE OF PUBLIC ENTERPRISE 2 Development Planning in a Mixed Economy T. N. Srinivasan 17 Discussion 32 3 Public Enterprise in an Underdeveloped and Dependent Economy Armando Labra 36 Discussion 41 4 Some Considerations on the Role of Public Enterprise Emilio Sacristan Roy 44 Discussion 53 5 Design of a Development Policy for Mexico: Industry and Oil Ernesto Marcos 57 Discussion 66 PART TWO PRIVATE AND PUBLIC ENTERPRISE: EXPERIENCE IN VARIOUS COUNTRIES 6 Market Structure and Market Organisation in the Electricity and Gas Public Utility Sector of the FRG Hans K. Schneider and Walter Schulz 71 Discussion 93 7 Public Enterprise and Advanced Planning Techniques: The Experience of Electricite de France Marcel Boiteux 97 Discussion 112 vi Contents 8 Thoughts on the Role of Public Holdings in Developing Economies: INI's Experience in Spain Tomas Galan 116 Discussion 135 9 The State Holding System in Italian Economic Development V. Ajmone Marsan 138 Discussion 158 10 Enterprises in Hungary Before and After the Economic Reform Rezso Nyers and Marton Tardos 161 Discussion 194 11 The Efficiency of Public Enterprise: Lessons of the French Experience Pierre Dreyfus 198 Discussion 208 PART THREE: STUDIES OF RELATIVE EFFICIENCY 12 Public Enterprise in Practice: The British Experience of Nationalisation During the Past Decade Richard Pryke 215 Discussion 230 13 Incentives, Efficiency and Social Control: The Case of the Kibbutz Haim Barkai 233 Discussion 250 14 Comparative Costs of Public and Private Enterprise in a Municipal Service E. S. Savas 253 Discussion 265 PART FOUR TOWARD POLICY 15 The Rate of Growth ofReal Wages and the Role of the State in the Economy Antonio Sacristan Colas 273 Discussion 284 16 Actual and Potential Pricing Practices under Public and Private Operation William S. Vickrey 286 Discussion 297 CONCLUDING COMMENTS 17 On the Implications of the Conference Discussions WilliamJ. Baumol 300 Index 305 List of Participants M. Michel Felix Albert, Chef adjoint du Service des Etudes Economiques Generales, Direction Generate, Electricite de France Professor Benito Acosta, Research Professor, CIDE, Mexico Professor Armando Arancibia, Research Professor, CIDE, Mexico Mr Tulio Arroyo, Instituto Politedinico Nacional, UPIICSA/SEGI, Mexico Professor Haim Barkai, Professor of Economics, Hebrew University, Jerusalem Professor William J. Baumol, Professor of Economics, Princeton and New York Universities, USA M. Marcel Boiteux, Directeur General, Electricite de France Dr Jose Casar, CIDE, Mexico Mrs Mercedes Salcedo Chavez, Conasupo, Mexico M. Pierre Dreyfus, Ancien President et Directeur General de Ia Regie Renault Mr Eibenschutz, CIDE, Mexico Mrs Carmen Espinoza, CIDE, Mexico Professor Luc Fauvel, Secretary General, International Economic Association Professor Dietrich Fischer, Department of Economics, New York University Dr Tomas Galan, Director of Planning, lnstituto Nacional de Industria, Madrid Mrs Elma Gonzalez, CIDE, Mexico Professor Oscar Gonzalez, CIDE, Mexico Professor Luis Gutierrez, Research Professor, CIDE, Mexico Professor Lord Kaldor, King's College, Cambridge, UK Dr Rodrigo Keller, Director of Studies, Instituto Nacional de Industria, Madrid Dr Armando Labra, President of the Collegio Nacional de Economistas, Mexico Professor David Levhari, Department of Economics, Hebrew University, Jerusalem Mr Manzuilletes, CIDE, Mexico Dr Ernesto Marcos, Director de Coordinaci6n de Industria Paraestatal Secretaria de Patrimonio y Fomento Industrial, Mexico Dr V. Ajmone Marsan, Director of Economic Studies, Instituto per Ia Ricostruzione Industriale (IRI), Rome Lie Trinidad Martinez-Tarrag6, Director of Studies, CIDE, Mexico Professor Isaac Minian, Research Professor, CIDE, Mexico Mrs lfigeniai Navarrete, CIDE, Mexico viii List of Participants Dr Rezso Nyers, Director of the Institute of Economics of Hungarian Academy of Sciences Professor Bernardo Palomera, Research Professor, CIDE, Mexico Dr Richard Pryke, Department of Economics, University of Liverpool, UK Dr Antonio Sacristan Colas, President of CIDE, Mexico Lie Emilio Sacristan Roy, Director Adjunto de Empresas y Fideicomiso de N acional Financiera, Mexico Mr Sanchez, CIDE, Mexico Professor E. S. Savas, Professor of Public Systems Management and Director, Center for Government Studies, Graduate School of Business, Columbia University, NY, USA Professor Hans K. Schneider, Direktor, Energiewirtschaftliches Institut, University of Cologne, FRG Professor T. N. Srinivasan, Indian Statistical Institute, Delhi, and Special Adviser, Development Research Center, World Bank, Washington, USA Mr Christian Stoffaes, Assistant to the Director General oflndustry, Department oflndustry, Paris, France Dr Marton M. Tardos, Head of Department, Institute for Economic and Market Research, Budapest, Hungary Carlos Tello, ex-Secretary of the Secretaria de Programacion y Presupuesto, Mexico Professor Pedro Uribe, Research Professor, CIDE, Mexico Professor William Vickrey, McVickar Professor Political Economy, Columbia University, NY, USA Professor Pedro Vuskovic, Research Professor, CIDE, Mexico Observer Mr Peter Ruof, Program Officer, International Division, European and International Affairs, the Ford Foundation, New York, USA Introduction William J. Baumol PRINCETON AND NEW YORK UNIVERSITIES This volume reports the discussion at a conference held in Mexico City in January 1978. A conference on the role of public and private enterprise in mixed economies was first proposed to the International Economic Association by Lord Kaldor. A distinctive feature of any meeting devoted to this subject is the absence of any large body of theory or empirical evidence on which the discussions can be based. Thus, unlike many other conferences sponsored by the lEA, we could not hope to start from an accepted analytic base well known to all the participants. The conference could not hope to take stock of any systematic body of knowledge and devote itself to exploration of the most felicitous directions for its augmentation. Our work, then, had to devote itself to an earlier phase of the analysis of our topic-the determination of the issues and the hypotheses to which future research could usefully address itself. Our agenda, then, was the preparation of an agenda for future students of the subject. In saying this I should not imply that the functioning of public and private enterprise is entirely terra incognita. There exist both theoretical and empirical materials of high quality that relate to the subject and that in some cases go to the heart of the matter. For example, there is an extensive literature on optimal pricing and investment policies for nationalised firms, almost all of it dominated by the pathbreaking work of Marcel Boiteux. There is also some systematic empirical work on the performance of public and private enterprise in particular industries or particular geographic areas. Here, the work of E. S. Savas and Richard Pryke is particularly noteworthy. Finally, there is a body of experience, of knowledge derived by observation in the course of managerial activities, which is waiting to be brought together and organised. In short, the conference dealt with an area about which considerable knowledge has been accumulated, but it seems never to have been brought together and shaped into a coherent body of analysis. Part of the task of the conference, then, was preliminary exploration of this body of information to estimate its
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