Incomplete Contracts and Public Ownership: Remarks, and an Application to Public‐Private Partnerships

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Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships Author(s):

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Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships

The question of what should determine the boundaries between public and private firms in an advanced capitalist economy is a highly topical one. In this paper I discuss some recent theoretical thinking on this issue. I divide the paper into two parts. First, I make some general remarks about the relationship between the theoretical literature of privatization and incomplete contracting theories...

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We study the provision of an excludable public good to discuss whether the imposition of participation constraints is desirable. It is shown that this question may equivalently be cast as follows: should a firm that produces a public good receive tax revenues, or face a self-financing requirement. The main result is that the desirability of participation constraints is shaped by an equity-effic...

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ژورنال

عنوان ژورنال: The Economic Journal

سال: 2003

ISSN: 0013-0133,1468-0297

DOI: 10.1111/1468-0297.00119