This discussion paper resulted in a publication in <A HREF="http://link.springer.com/article/10.1007%2Fs10645-012-9188-7">'De Economist'</A>, 2012, 160(3), 219-236.</A> When debt levels approach critical levels, tax payers may revolt against the associated debtservice burden. Funding problems may arise in capital markets when lenders anticipate such revolts and refuse to...</a>

Governments with transitional economies have applied different privatization methods, from an almost free distribution to the direct sale of state assets. While a free distribution was believed to ensure the political feasibility of the programme and its fairness, direct sales, (or more...