This study presents a model of spontaneous privatization based on the rational expected-utility maximizing behavior of incumbent communists - such as those in the republics of federations, e.g. the former Soviet Union or former Yugoslavia - who foresaw the end of communist rule. These individuals used nationalistic policies to increase their popularity in the circumstances of new, independent democratic systems and transformed political power into asset ownership via spontaneous privatization. The conclusions of the model are shown to be consistent with the Slovene experience.
|Number of pages||18|
|State||Published - 1996|