Towards the Theory of Privatization

Abstract

An attempt is made to define main problems of the privatization theory and to present a survey of some results in this area. Two models are discussed that demonstrate paradoxical consequences of property right restrictions and dynamics of property right redistribution which entails a stratification of society. Two ways of transition from centralized to a market system (through privatization and through price liberalization processes) are compared in frameworks of a mixed economy model with queues. Relations between theoretical conclusions and real issues of the Russian privatization are discussed as well.privatization; privatization theory; transition; Russia