Public-Private Partnerships A Public Economics Perspective

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