| Author Name | ODA Keiichiro (Senior Fellow, RIETI) |
|---|---|
| Creation Date/NO. | December 2018 18-E-085 |
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Abstract
We study the scheme of public-private partnerships (PPP) from an incomplete contracting perspective. We show that PPP can implement an efficient level of investment in a public project with externalities through a bargaining game played by the public sector and the delegated private agent, which functions as a device in internalizing the externalities. Also, we analyze the governance role of an infrastructure fund in PPP through its interaction with the financial market.
