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Mixed companies and local governance: no man can serve two masters

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  • da Cruz, Nuno F.
  • Marques, Rui Cunha

Abstract

This article looks at the use of institutionalized public–private partnership (PPP) arrangements by local governments for the delivery of different types of infrastructure. It starts by analyzing the mixed company model from a theoretical point of view, in particular the potential for internal regulation and the achievement of a relational agreement. Then, after discussing the practicalities of crafting this type of governance structure, four Portuguese case studies are examined. The empirical evidence on mixed companies operating in the water, waste, transportation, and education sectors shows that the extreme complexity involved in the whole life-cycle management of these companies usually leads to a poor protection of the public interest.

Suggested Citation

  • da Cruz, Nuno F. & Marques, Rui Cunha, 2012. "Mixed companies and local governance: no man can serve two masters," LSE Research Online Documents on Economics 59778, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:59778
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    File URL: http://eprints.lse.ac.uk/59778/
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    References listed on IDEAS

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    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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