The Economics of Public-Private Partnerships
A Basic Guide

The authors provide a summary of the main lessons learned from the past twenty-five years regarding public-private partnerships.

Eduardo Engel (Author), Ronald D. Fischer (Author), Alexander Galetovic (Author)

9781107035911, Cambridge University Press

Hardback, published 15 September 2014

194 pages, 12 b/w illus. 16 tables
22.9 x 15.2 x 1.4 cm, 0.46 kg

'For almost twenty years now, Engel, Fischer and Galetovic have made us think about some of the most subtle dimensions of public-private partnerships through high-impact journal articles and stimulating presentations at conferences around the world. They have built on this and added their take on many of the most recent theoretical and policy developments in the field to deliver this impressive little book that teaches us even more subtle and valuable lessons. I cannot imagine anyone interested in the policy relevance of the academic research on public-private partnerships not wanting to read this book. Short, stimulating, subtle and incredibly relevant: a hard-to-beat combination!' Antonio Estache, Université Libre de Bruxelles, Belgium

Governments typically build and maintain public infrastructure, which they fund through taxes. But in the past twenty-five years, many developing and advanced economies have introduced public-private partnerships (PPPs), which bundle finance, construction, and operation into a long-term contract with a private firm. In this book, the authors provide a summary of what they believe are the main lessons learned from the interplay of experience and the academic literature on PPPs, addressing such key issues as when governments should choose a PPP instead of a conventional provision, how PPPs should be implemented, and the appropriate governance structures for PPPs. The authors argue that the fiscal impact of PPPs is similar to that of conventional provisions and that they do not liberate public funds. The case for PPPs rests on efficiency gains and service improvements, which often prove elusive. Indeed, pervasive renegotiations, faulty fiscal accounting, and poor governance threaten the PPP model.

1. Introduction
2. Country studies
3. Highways
4. Incentives
5. Private finance
6. Public finance
7. Renegotiations
8. Governance
9. When and how to implement PPPs.

Subject Areas: International business [KJK], International economics [KCL], Economics [KC]