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“The determinants of contractual choice for private involvement in infrastructure projects in the United States”

  • Daniel Albalate

    ()

    (Faculty of Economics, University of Barcelona)

  • Germà Bel

    ()

    (Faculty of Economics, University of Barcelona)

  • R. Richard Geddes

    ()

    (Department of Policy Analysis & Management, College of Human Ecology, Cornell University)

Reliance on private partners to help provide infrastructure investment and service delivery is increasing in the United States. Numerous studies have examined the determinants of the degree of private participation in infrastructure projects as governed by contract type. We depart from this simple public/private dichotomy by examining a rich set of contractual arrangements. We utilize both municipal and state-level data on 472 projects of various types completed between 1985 and 2008. Our estimates indicate that infrastructure characteristics, particularly those that reflect “stand alone” versus network characteristics, are key factors influencing the extent of private participation. Fiscal variables, such as a jurisdiction’s relative debt level, and basic controls, such as population and locality of government, increase the degree of private participation, while a greater tax burden reduces private participation..

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File URL: http://www.ub.edu/irea/working_papers/2012/201220.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201220.

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Length: 39 pages
Date of creation: Dec 2012
Date of revision: Dec 2012
Handle: RePEc:ira:wpaper:201220
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