Public-private partnerships from budget constraints: Looking for debt hiding?

IJIO9 février 2017 

Marco Buso, Frédéric Marty, and Phuong Tra Tran, International Journal of Industrial Organization (forthcoming)

Abstract : The use of Public-Private Partnerships (PPPs) to realize and operate public infrastructures is often associated with fiscal-circumventing motivations. Using data at the municipal level, this paper investigates whether budget-constrained public authorities adopt PPPs in order to hide public debt. The results show that financial difficulties often lead to a preference for PPPs instead of traditional forms of public procurement, but this behavior is not explained by the possibility of debt-hiding. Explanations for these findings are discussed.

Zoé Le Squeren

Author: Zoé Le Squeren

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