How expensive are cost savings? On the economics of public-private partnerships

Timo Valila

No 4/2005, EIB Papers from European Investment Bank, Economics Department

Abstract: Public-private partnerships have emerged as an alternative to traditional public procurement in financing and providing infrastructure services. This paper considers public-private partnerships as another form of public sector intervention in the economy. It analyses the microeconomic pros and cons of publicprivate partnerships by identifying the sources of both higher benefits and higher costs associated with them, as compared to traditional public investment. Such analysis allows the outlining of the conditions under which public-private partnerships may be the optimal form of public sector intervention. In addition, the paper considers public-private partnerships from a macroeconomic perspective, focussing on their impact on fiscal policy and aggregate growth.

Keywords: public-private partnerships; procurement; economic efficiency (search for similar items in EconPapers)
JEL-codes: D61 H40 H57 H61 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-06-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:eibpap:2005_004

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