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Soft budgets and endogenous renegotiations in transport PPPs: An equilibrium analysis

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  • Engel, Eduardo M.R:A.
  • Fischer, Ronald
  • Galetovic, Alexander

Abstract

•Most countries keep PPP investments off balance sheet.•Governments renegotiate PPPs and use off-balance sheet finance to elude spending limits.•Future administrations pay a large fraction of the incumbent's additional spending.•Neither ex ante spending limits nor ex post competitive bidding for renegotiated contracts stem the tendency of the incumbent to bring forward infrastructure spending.

Suggested Citation

  • Engel, Eduardo M.R:A. & Fischer, Ronald & Galetovic, Alexander, 2019. "Soft budgets and endogenous renegotiations in transport PPPs: An equilibrium analysis," Economics of Transportation, Elsevier, vol. 17(C), pages 40-50.
  • Handle: RePEc:eee:ecotra:v:17:y:2019:i:c:p:40-50
    DOI: 10.1016/j.ecotra.2018.12.003
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    References listed on IDEAS

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    Cited by:

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    2. Ronald Fischer & Nicolás Campos & Eduardo Engel & Alexander Galetovic, 2019. "Renegotiations and Corruption in Infrastructure: The Odebrecht Case," Documentos de Trabajo 346, Centro de Economía Aplicada, Universidad de Chile.
    3. Matteo Triossi & María Haydée Fonseca-Mairena, 2019. "Incentives and implementation in marriage markets with externalities," Documentos de Trabajo 345, Centro de Economía Aplicada, Universidad de Chile.

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