Incomplete Contract in Private Finance Initiative (PFI) Contracts: Causes, Implications and Strategies

The Acceptability of Private Finance Initiative (PFI) Scheme in Malaysia

Today’s competitive global environment has led governments around the world to seek new ways to finance projects, build infrastructure and deliver services. Private Finance Initiative (PFI) is increasingly being used as a tool to bring together the strengths of both sectors, public and private to facilitate the delivery of projects and services. However, the new PFI Scheme introduced by the Gov...

The private finance initiative: PFI in the NHS--is there an economic case?

Adoption of Private Finance Initiative (PFI) in Malaysian Public Works Projects: Are We Ready?

In the United Kingdom (UK), Public Private Partnerships (PPP), in the guise of the Private Finance Initiative (PFI), has become an integral part of national government policy in the delivery of public facilities and services. The aim of introducing the PFI was to achieve closer partnering between the public and private sectors at both central government and local authority levels. Despite the P...

IT Outsourcing Contracts: Practical Implications of the Incomplete Contract Theory

This article deals with IT outsourcing contracts. Contract amendments are often necessary, either because of changing client needs, or because the contracts themselves are incomplete. In some cases, requests for changes give rise to disputes and even litigation. Also market conformity is a hot topic for IT outsourcing contracts. Dissatisfied clients may wish to repatriate the service as a resul...

Corporate Finance, Incomplete Contracts, and Corporate Control∗

This essay in celebration of Grossman and Hart (1986) (GH) discusses how the introduction of incomplete contracts has fundamentally changed economists’perspectives on corporate finance and control. Before GH, the dominant theory in corporate finance was the tradeoff theory pitting the tax advantages of debt (relative to equity) against bankruptcy costs. After GH, this theory has been enriched b...