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CESifo Economic Studies Advance Access originally published online on November 2, 2007
CESifo Economic Studies 2007 53(3):466-490; doi:10.1093/cesifo/ifm013
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© The Author 2007. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Public-Private Partnerships—A Public Economics Perspective*

Efraim Sadka{dagger}

{dagger} The Eitan Berglas School of Economics, Tel-Aviv University, Tel-Aviv, Israel, e-mail: sadka{at}post.tau.ac.il

Public-private partnerships (PPPs) are spreading all over the world. It may be quite plausible that they were initially started mainly as an attempt to evade expenditure controls and hide public budget deficits. But if they are properly designed and transparently reported, PPPs can play a useful role in enhancing the efficiency of the provision of services that were supplied before solely by the public sector. This article provides a public economics perspective on PPPs. (JEL codes: H54, L33)

Key Words: PPP • private-finance initiative • build-operate-transfer

*The views expressed in this article are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.


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