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Nationalizing Public Utilities

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This is another one of those questions that isn't really discussed in the textbook and, since I'm not really sure about the difficulties the public utilities face, I have not idea where to begin in answering this question. Some guidance please...

"Given the difficulties that the regulation of public utilities faces, would it not be better to nationalize public utilities, as some European countries have done? Explain."

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Nationalization solves the problem of having to regulate prices, but introduces problems of performance. Public utilities are notoriously underfunded. The government, after all, has many obligations. Whenever the economy isn't ...

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