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The Basic Public Finance of Public-Private Partnerships Author info | Abstract | Publisher info | Download info | Related research | Statistics Eduardo Engel
Ronald Fischer
Alexander Galetovic ()
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Public-private partnerships (PPPs) cannot be justified because they free public funds. When PPPs are desirable because the private sector is more efficient, the contract that optimally trades demand risk, user-fee distortions and the opportunity cost of public funds is characterized by a minimum revenue guarantee and a cap on the firm’s revenues. Yet income guarantees and revenue sharing arrangements observed in practice differ fundamentally from those suggested by the optimal contract. The optimal contract can be implemented via a competitive auction with realistic informational requirements; and risk allocation under the optimal contract suggests that PPPs are closer to public provision than to privatization. JEL classification: H21, H54, L51, R42.
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Paper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number
235.
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Date of creation: 2007Date of revision:
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Paper Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2007.
"The Basic Public Finance of Public-Private Partnerships ,"
Documentos de Trabajo
234, Centro de Economía Aplicada, Universidad de Chile.
[Downloadable!] Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2007.
"The Basic Public Finance of Public-Private Partnerships ,"
NBER Working Papers
13284, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2007.
"The Basic Public Finance of Public-Private Partnerships ,"
Cowles Foundation Discussion Papers
1618, Cowles Foundation, Yale University, revised Feb 2008.
[Downloadable!] Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2007.
"The Basic Public Finance of Public-Private Partnerships ,"
Levine's Bibliography
843644000000000313, UCLA Department of Economics.
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Working Papers
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Elisabetta Iossa & David Martimort, 2008.
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Other versions: Eduardo Engel & Ronald Fischer, 2008.
"Optimal resource extraction contracts under threat of expropriation ,"
Documentos de Trabajo
244, Centro de Economía Aplicada, Universidad de Chile.
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Other versions:
Eduardo Engel & Ronald Fischer, 2008.
"Optimal Resource Extraction Contracts Under Threat of Expropriation ,"
Working Papers
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[Downloadable!] Engel, Eduardo & Fischer, Ronald, 2008.
"Optimal Resource Extraction Contracts under Threat of Expropriation ,"
Working Papers
34, Yale University, Department of Economics.
[Downloadable!] Eduardo Engel & Ronald Fischer, 2008.
"Optimal Resource Extraction Contracts Under Threat of Expropriation ,"
NBER Working Papers
13742, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Eduardo Engel & Ronald Fischer, 2008.
"Optimal Resource Extraction Contracts under Threat of Expropriation ,"
Levine's Bibliography
122247000000001833, UCLA Department of Economics.
[Downloadable!] Eduardo Engel & Ronald Fischer, 2008.
"Optimal Resource Extraction Contracts under Threat of Expropriation ,"
Cowles Foundation Discussion Papers
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Working Papers
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Athias, Laure, 2007.
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Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009.
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Other versions: Alexandre Janiak, 2008.
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Alexandre Janiak, 2008.
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Easterly, William & Irwin, Timothy & Serven, Luis, 2007.
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