itive ▁indust ries ▁with ▁well - in formed ▁consum ers , ▁priv at ization ▁consist ently ▁impro ves ▁efficiency . ▁The ▁more ▁compet itive ▁the ▁industry , ▁the ▁greater ▁the ▁improvement ▁in ▁output , ▁profit ability , ▁and ▁efficiency . ▁Such ▁efficiency ▁g ains ▁mean ▁a ▁one - off ▁increase ▁in ▁G DP , ▁but ▁through ▁improved ▁in cent ives ▁to ▁innov ate ▁and ▁reduce ▁costs ▁also ▁tend ▁to ▁raise ▁the ▁rate ▁of ▁economic ▁growth . ▁Although ▁typically ▁there ▁are ▁many ▁costs ▁associated ▁with ▁these ▁efficiency ▁g ains , ▁many ▁econom ists ▁argue ▁that ▁these ▁can ▁be ▁de alt ▁with ▁by ▁appropriate ▁government ▁support ▁through ▁red ist ribution ▁and ▁perhaps ▁re training . ▁Yet , ▁some ▁empir ical ▁literature ▁suggests ▁that ▁priv at ization ▁could ▁also ▁have ▁very ▁mod est ▁effects ▁on ▁efficiency ▁and ▁quite ▁re gress ive ▁distrib utive ▁impact . ▁In ▁the ▁first ▁attempt ▁at ▁a ▁social ▁w elf are ▁analysis ▁of ▁the ▁British ▁priv at ization ▁program ▁under ▁the ▁Conserv ative ▁govern ments ▁of ▁Margaret ▁Th atch er ▁and ▁John ▁Major ▁during ▁the ▁ 1 9 8 0 s ▁and ▁ 1 9 9 0 s , ▁Mass imo ▁Flor io ▁points ▁to ▁the ▁absence ▁of ▁any ▁product ivity ▁shock ▁resulting ▁strictly ▁from ▁ownership ▁change . ▁Instead , ▁the ▁impact ▁on ▁the ▁previously ▁national ized ▁companies ▁of ▁the ▁UK ▁product ivity ▁le ap ▁under ▁the ▁Conserv atives ▁varied ▁in ▁different ▁indust ries . ▁In ▁some ▁cases , ▁it ▁occurred ▁prior ▁to ▁priv at ization , ▁and ▁in ▁other ▁cases ,