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Incentive Structures for Co-Operation Between the Public and Private Sector in Urban Development Contexts

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  • Jan Schaaf

Abstract

This paper aims to identify incentive structures for co-operations between the public and private sector in urban development as well as the economic reasons for such structures. The current and at the moment intense discussions taking place in Germany regarding Public Private Partnership (PPP) rotate around the areas of traffic construction as well as structural engineering projects. However there exist a great number of fields of operation for PPP. One study, from the German Institute of Urban Affairs, shows us great growth potential in the areas of urban development respectively urban renewal. In this context, PPP will be analysed from the point of view of new institutional economics as well as the game theory, this will help reveal uncertainties as well as identify problems in the complexity of building cooperation and through the design of incentive structures help to reduce and overcome same. Due to the complex social and economic problems within the scope of urban development, singular instance solutions will not lead to the desired result on the contrary what is required is more of an integrated strategically approach. This paper pursues the question, which elements of classic real estate development and the guideline and coordinating operations of the PPP Task Forces can and should be used in urban development respectively what modifications are required on said elements. Because of the essential implementation of economically and socially intricate projects in urban development, it is necessary to establish PPP as a central aspect in the discussion about administrative reform.

Suggested Citation

  • Jan Schaaf, 2007. "Incentive Structures for Co-Operation Between the Public and Private Sector in Urban Development Contexts," ERES eres2007_266, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2007_266
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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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