@techreport{Engel2007basic,
abstract = {Public-private partnerships (PPPs) cannot be justified because they free public funds. When PPPs are justified on efficiency grounds, the contract that optimally balances demand risk, user-fee distortions and the opportunity cost of public funds, features a minimum revenue guarantee and a revenue cap. However, observed revenue guarantees and revenue sharing arrangements differ from those suggested by the optimal contract. Also, this contract can be implemented via a competitive auction with realistic informational requirements. Finally, the allocation of risk under the optimal contract suggests that PPPs are closer to public provision than to privatization.},
address = {New Haven, Conn.},
author = {Eduardo M. R. A. Engel and Ronald D. Fischer and Alexander Galetovic},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H21; H54; L51; R42; 330; Bundling; cost of public funds; demsetz auction; minimum revenue guarantees; privatization; revenue and profit caps; scope of government,; subsidies.},
language = {eng},
number = {957},
publisher = {Yale Univ., Economic Growth Center},
title = {The basic public finance of public-private partnerships},
type = {Center discussion paper // Economic Growth Center},
url = {http://hdl.handle.net/10419/26996},
year = {2007}
}
