Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/226213
Authors: 
Avdiu, Besart
Weichenrieder, Alfons J.
Year of Publication: 
2020
Series/Report no.: 
SAFE Working Paper 295
Abstract: 
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.
Subjects: 
Public-Private Partnerships
Infrastructure
Financing Costs
Default
JEL: 
H11
H54
G33
Document Type: 
Working Paper

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