Financing costs and the efficiency of public-private partnerships
- The paper compares provision of public infrastructure via public-private partnerships (PPPs) with provision under government management. Due to soft budget constraints of government management, PPPs exert more effort and therefore have a cost advantage in building infrastructure. At the same time, hard budget constraints for PPPs introduce a bankruptcy risk and bankruptcy costs. Consequently, if bankruptcy costs are high, PPPs may be less efficient than public management, although this does not result from PPPs’ higher interest costs.
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| Author: | Besart Avdiu, Alfons J. WeichenriederORCiDGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-555686 |
| URL: | https://ssrn.com/abstract=3732107 |
| Parent Title (English): | SAFE working paper series ; No. 295 |
| Series (Serial Number): | SAFE working paper (295) |
| Publisher: | SAFE |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2020 |
| Year of first Publication: | 2020 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2020/11/19 |
| Tag: | Default; Financing Costs; Infrastructure; Public-Private Partnerships |
| Issue: | This Version, November 2020 |
| Page Number: | 21 |
| HeBIS-PPN: | 473421089 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
