Date of this Version
Public Management Review
This articls uses the reform of New Zealand's state-owned enterprises from 1984–1995 to highlight two lessons for public sector reform from New Institutional Economics. First, failure to apply agency, property rights and transaction cost theory in tandem can lead to time-consuming pauses and policy shifts in a reform programme. Second, a discriminating alignment between the institutional environment and the regulatory governance structure chosen is crucial for successful privatization in industries characterized by economies of scale, large non-redeployable investments and extremely political output such as telecommunications and electricity.
This is an Accepted Manuscript of an article published by Taylor & Francis in Public Management Review on 28 July, 2006, available online: http://wwww.tandfonline.com/10.1080/14719039900000011
new institutional economics, New Zealand, public sector reform, regulation
Henisz, W. J. (1999). ‘The Institutions and Governance of Economic Reform’1: Theoretical Extensions and Applications. Public Management Review, 1 (3), 349-371. http://dx.doi.org/10.1080/14719039900000011
Date Posted: 27 November 2017
This document has been peer reviewed.