Cover image for Towards a Principal-Agent Based Typology of Risks in Public-Private Partnerships.
Towards a Principal-Agent Based Typology of Risks in Public-Private Partnerships.
Title:
Towards a Principal-Agent Based Typology of Risks in Public-Private Partnerships.
Author:
De Palma, André.
ISBN:
9781451917505
Personal Author:
Physical Description:
1 online resource (25 pages)
Series:
IMF Working Papers
Contents:
Contents -- I. Introduction -- II. The development of PPPs -- III. Risk sharing, asymmetry of information, and perception biases -- A. Asymmetry of information -- B. Perception Biases -- IV. A principal-agent approach to PPPs -- V. PPP risks and a typology -- VI. Conclusions -- Tables -- 1. A Basic Matrix for Risk-Sharing in PPPs -- 2. Typology of Risks in PPPs -- Figures -- 1. Perception Biases -- 2. The Principal-Agent Framework -- References.
Abstract:
There is a strong economic rationale for close cooperation between the public and private sectors. This has resulted in a significant increase in the demand for the provision of public services through instruments combining public and private money such as public-private partnerships (PPPs or P3s). We describe these arrangements and explore how they can be analyzed using standard tools in economics (incentives and principal-agent theory). We discuss the implications of our approach in terms of identifying risks that are often overlooked before turining to the optimal risk-sharing between the public and private partners, in particular with respect to information asymmetries in risk perceptions. This allows us to propose a typology of the risks associated with PPPs, where both internal risks (the risks associated with the contract) and external risks (those associated with the project) are considered.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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