Privatization is the conversion of public property into private property or the changing of the legal structure of a public enterprise into a private one. Privatization can have fiscal motives (budget consolidation), but is most often driven by economic considerations. It is underpinned by the idea that if functioning markets exist, they lead to an optimal allocation of resources. DICE’s Public Enterprises/Privatization field provides data on institutional changes with respect to privatization, as well as data on the outcomes of privatization efforts in European countries.
Public finance defines the government’s role in an economy. If private markets were to work perfectly, there would be little scope for government interventions. However, market failures (due to, for example, externalities, public goods, informational advantages, and economies of scale) provide an efficiency-based rational for the governmental provision of goods and services. This DICE field gives an overview of public finances in European countries, divided into public debt, public expenditure and public revenue.
Public Governance and Law
The implementation and enforcement of institutions requires a public sector that functions efficiently. Corruption, for example, decreases efficiency, while greater transparency in the public sector increases the efficiency of governmental interventions. The DICE field public Governance and Law includes indicators that measure the efficiency of the public sector across countries and its development over time.