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Public-Private Partnerships--A Public Economics Perspective

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Author Info
Efraim Sadka

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Abstract

Public-private partnerships (PPPs) involve the supply by the private sector of infrastructure and services deriving from infrastructure assets which have traditionally been supplied by the public sector. PPPs are spreading all over the world. It may be quite plausible that such arrangements were initially an attempt to evade expenditure controls and hide public budget deficits. But if they are properly designed and transparently reported, PPPs can enhance the efficiency of the provision of services that were formerly supplied solely by the public sector. This paper provides a public economics perspective on PPPs.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/77.

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Length: 29 pages
Date of creation: 05 Apr 2006
Date of revision:
Handle: RePEc:imf:imfwpa:06/77

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Related research
Keywords: Public sector ; Private sector ; Infrastructure ; Government expenditures ; Budget deficits ;

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References listed on IDEAS
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  1. Ward Romp & Jakob de Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Blackwell Publishing, vol. 8(s1), pages 6-52, 04. [Downloadable!] (restricted)
    Other versions:
  2. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-71, October. [Downloadable!] (restricted)
  3. Kamps, Christophe, 2005. "Is there a lack of public capital in the European Union?," EIB Papers 3/2005, European Investment Bank, Economic and Financial Studies. [Downloadable!]
  4. Bajari, Patrick & Tadelis, Steven, 2001. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 387-407, Autumn.
    Other versions:
  5. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 339-357, November. [Downloadable!] (restricted)
  6. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June. [Downloadable!] (restricted)
    Other versions:
  8. Riess, Armin, 2005. "Is the PPP model applicable across sectors?," EIB Papers 6/2005, European Investment Bank, Economic and Financial Studies. [Downloadable!]
  9. Grout, Paul A, 1997. "The Economics of the Private Finance Initiative," Oxford Review of Economic Policy, Oxford University Press, vol. 13(4), pages 53-66, Winter.
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