Efficient Public-Private Capital Structures

Marian Moszoro

MPRA Paper from University Library of Munich, Germany

Abstract: This paper presents a rationale for hybrid public-private capital structures in public utilities. The public sector can borrow money cheaper, while private investors can spawn life-cycle cost savings. When investment vehicles enable the internalization of the financial advantage of the public sector and the managerial advantage of the private sector, a Pareto-efficient capital structure is achieved with both the public and private parties as shareholders. I show how different knowledge transfer schemes determine the optimal shareholding structure for the utility company.

Keywords: Public-Private Partnerships; Ownership Structures; Public Investment Policy; Knowledge Transfer; Water Utilities (search for similar items in EconPapers)
JEL-codes: G32 H43 H54 L32 L95 (search for similar items in EconPapers)
Date: 2014-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published in Annals of Public and Cooperative Economics 1.85(2014): pp. 103-126

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Related works:
Journal Article: EFFICIENT PUBLIC-PRIVATE CAPITAL STRUCTURES (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:102713

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