Redistributive Impact of Privatization and the Regulation of Utilities in Chile
Privatization has been one of the primary factors generating changes in the Chilean economy over the last decade. Privatization has faced some opposition due part to its uncertain effect on employment and prices. Despite the importance of the topic, only few attempts have been made to analyse empirically the gains and losses associated with the privatization process and its concomitant regulatory framework. The purpose of this paper is twofold. First, to provide an idea of the effect of privatization on efficiency and then, to understand whether those who oppose further privatization, can justify their position on the grounds that privatization, in fact, negatively affects the poorest.