The Simple Microeconomics of Public-Private Partnerships

The Simple Micro - Economics of Public - Private Partnerships January 2009

We build a unified theoretical framework to analyze the main incentive issues in Public Private Partnerships (PPPs) and the shape of optimal contracts in those contexts. We present a basic model of procurement in a multitask environment in which a risk-averse agent chooses unobservable efforts in cost reduction and quality improvement. We begin by studying the effect on incentives and risk tran...

Public-Private Partnerships

Improving the Outcomes of Public Private Partnerships

Finance and Public-Private Partnerships

A PPP bundles investment and service provision of infrastructure into a single long-term contract. A group of private investors finances and manages the construction of the project, then maintains and operates the facilities for a long period of usually 20 to 30 years, and at the end of the contract transfers the assets to the government. During the operation of the project, the private partner...

Public-private partnerships: an overview.

The development and marketing of medicines needed specifically to combat diseases of the developing world are commercially unattractive because the populations concerned are among the poorest on earth. Partnerships which bring together pharmaceutical companies, academics, not-for-profit organizations, philanthropists, governmental and inter-governmental agencies are an increasingly popular solu...