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Public-private partnerships from budget constraints: Looking for debt hiding?

Listed author(s):
  • Buso, Marco
  • Marty, Frederic
  • Tran, Phuong Tra

The use of Public-Private Partnerships (PPPs) to realize and operate public infrastructures is often associated with fiscal-circumventing motivations. Using data at the municipal level, this paper investigates whether budget-constrained public authorities adopt PPPs in order to hide public debt. The results show that financial difficulties often lead to a preference for PPPs instead of traditional forms of public procurement, but this behavior is not explained by the possibility of debt-hiding. Explanations for these findings are discussed.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167718716304064
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Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 51 (2017)
Issue (Month): C ()
Pages: 56-84

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Handle: RePEc:eee:indorg:v:51:y:2017:i:c:p:56-84
DOI: 10.1016/j.ijindorg.2016.12.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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