This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is, each country has one major hub airport and some local...

The privatization neutrality theorem states that the share of public ownership in an enterprise does not affect welfare (i.e., any degree of privatization is optimal) under optimal tax-subsidy policy. We revisit this neutrality result. First, we investigate the case in which the private...

This paper investigates the relationship between partial privatization and the entry of private firms. The effects of foreign private firms' entry on a public firm's output and on the home country's welfare are different from well known results, if the public firm is partially privatized....