Can Fiscal Policy Explain Technical Inefficiency of Privatised Firms? A Parametric and non-parametric Approach

The massive interests of economic literature about the privatisation gave a notab impulse to the discussion about this theme in the pre and post privatisation firm performance. Basically in every case after privatisation the level of profit increa Does this mean that privatisation is certainly able to increase efficiency? In this a large part of the literature leave out the complex problem that public firms usu are subject to objectives and constraints that differently from private firms can a the overall economic efficiency. Unfortunately many authors ignore the effects taxation during the process of privatisation, but in real term there are significant issues that must be considered by public and private decision maker. In this pap concentrate the attention on the efficiency measures with the purpose to identify measure sources of successful performance that can be used in policy planning a allocation of resources. Several techniques to calculate these frontier functions h been used, some of them parametric, others non-parametric to empirically inves the relationship between taxation on firm's income and efficiency in the period p and post-privatisation. In this work we use both econometric and mathematical programming approaches for measuring efficiency. The econometric tool provid maximum likelihood estimates of a stochastic production and cost functions to distinguish noise from inefficiency. Instead, the mathematical programming approaches are non-stochastic and they do not make strict assumptions on the functional form of production and the statistical properties of the data. The gene results obtained from the 3 different tools (Stochastic Frontier, Data Envelopme Analysis and Neural Network) are consistent. In fact, we see that privatization enhanced efficiency in three out of four sample firms.