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Simple money-based tests for choosing between private and public delivery: a discussion of the issues

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  • Paul Grout

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  • Silvia Sonderegger

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Abstract

The decision when to provide services by the public sector and when to use the private sector is a fundamental one. The economic literature emphasises that the efficiency of the mechanisms of delivery will depend on the contractual nature of what can be achieved by the parties and the political economy forces. Totally separate from this literature, however, governments have tried to implement practical and simple tests to indicate when to use private and when to use public delivery methods. The aim of this paper is to address some of the issues associated with simple money-based tests. Copyright Springer 2006

Suggested Citation

  • Paul Grout & Silvia Sonderegger, 2006. "Simple money-based tests for choosing between private and public delivery: a discussion of the issues," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(1), pages 93-126, September.
  • Handle: RePEc:kap:revind:v:29:y:2006:i:1:p:93-126
    DOI: 10.1007/s11151-006-9111-y
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    References listed on IDEAS

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    1. Sandmo, Agnar & Dreze, Jacques H, 1971. "Discount Rates for Public Investment in Closed and Open Economies," Economica, London School of Economics and Political Science, vol. 38(152), pages 395-412, November.
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    9. Paul A. Grout, 2003. "Public and Private Sector Discount Rates in Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 62-68, March.
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    More about this item

    Keywords

    Public–private partnerships; Concession contracts; Regulation; D78; L50;

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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