The Design of Asymmetric Information Contracts for Public Sector Projects with Private Sector Participation PDF Download

Author: Renato E. Reside
Publisher:
ISBN:
Category : Contingent liabilities (Accounting)
Languages : en
Pages : 62

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Book Description
This study uses a simple model to solve for the optimal contracts under a situation where the government has asymmetric information about the quality of investors in essential infrastructure goods and services. The analysis concludes that it is possible for the government to offer a set of incentive-compatible contracts to investors.

Author: Renato E. Reside
Publisher:
ISBN:
Category : Philippines
Languages : en
Pages : 40

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Book Description
With asymmetric information, investors are offered a pair of incentive-compatible contracts covering production, tariff and guarantee coverage. Both contracts offer identical production quantities, but the contract designed for high risk investors offers over-insurance and tariff below marginal cost, while the contract designed for low risk investors offers under-insurance with tariff above marginal cost. This benchmark outcome may motivate solutions to adverse selection, incentive and risk-sharing problems in contracts involving private sector participation in infrastructure development projects in the Philippines.

Author: Jesse Hajer
Publisher: University of Toronto Press
ISBN: 1487517629
Category : Business & Economics
Languages : en
Pages : 425

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Book Description
The 2008 financial crisis and its subsequent economic impacts generated a challenge for national and regional governments across the world. From this economic ruin, the Social Impact Bond (SIB) was born as an alternative mechanism for government procurement and delivery of social public services. Social Service, Private Gain examines the evolution of SIBs, how they work, their theoretical motivation, and their global proliferation. The book critically assesses the potential of SIBs to constructively contribute to solving the multifaceted social challenges emerging from a context of entrenched and growing inequality. Claiming to bring incremental resources to the rescue, SIBs have taken up disproportionate space with new legislation, policy, subsidies, institutional supports, lobbyists, and "intermediaries" facilitating SIBs and thriving on their associated transaction costs. Drawing on mainstream and heterodox economic theory, practical case studies, and empirical data, Jesse Hajer and John Loxley generate new insights based on the limited but still suggestive publicly available data on SIB projects. Challenging the assumptions and narratives put forward by proponents of the model, they offer practical policy recommendations for SIBs and explain what the model tells us about the potential for transformational change for the better.

Author: Lewis, Mervyn K.
Publisher: Edward Elgar Publishing
ISBN: 1789906407
Category : Business & Economics
Languages : en
Pages : 160

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Book Description
Public private partnerships (PPPs) have been a controversial approach to procuring public infrastructure services. Against a background of recent trenchant criticism of PPPs, Mervyn K. Lewis, a leading scholar in the area, re-examines their utility. He questions what PPPs can and cannot do, why governments choose this route and whether PPPs can ever be good value for money.

Author: Mr.George C. Anayotos
Publisher: International Monetary Fund
ISBN: 1451955782
Category : Business & Economics
Languages : en
Pages : 28

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Book Description
This paper assesses the impact of information asymmetries on developing country financing and considers alternative techniques to reduce the adverse implications of such asymmetries. Following an introduction, Section II examines in general terms the role of information in financial markets and analyzes the incentive and risk sharing properties of alternative financial contracts. Information asymmetries which are present in domestic finance are more prevalent in international finance, in particular in developing country financing. Section III reviews measures aiming to resolve information asymmetries. Borrowing and creditor country regulations and policies, as well as innovative contractual agreements help to resolve a range of issues related to information asymmetries. However, despite their contribution, residual problems remain unresolved. The international financial institutions, and in particular the Fund, have an important role to play in alleviating information asymmetries.

Author: Jonathan Chenoweth
Publisher: Routledge
ISBN: 1351282662
Category : Business & Economics
Languages : en
Pages : 305

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Book Description
A renewed commitment to improved provision of water and sanitation emerged in the 2002 Johannesburg Declaration on Sustainable Development. Although many of the statements in the Declaration were vaguely worded, making it hard to measure progress or success, the Plan of Implementation of the Summit, agreed by the delegates to the conference, clearly stated that: "we agree to halve, by the year 2015, the proportion of people who are unable to reach or to afford safe drinking water and the proportion of people who do not have access to basic sanitation". Given the United Nations' predicted growth in global population from 6.1 billion in 2000 to 7.2 billion by 2015, this commitment will pose formidable challenges. To meet it, by the end of just a decade and half, approximately 6.6 billion people will need to have access to safe drinking water supplies. This is more than the current population of the world, and involves not only maintaining existing levels of supply but also providing new or upgraded services to 1.7 billion people. The challenge for sanitation is equally daunting: 5.8 billion people will need to be serviced, including new access provision for 2.1 billion. Even if these ambitious targets are met, representing a major achievement for the global community, there will still be approximately 650 million people in the world without access to safe drinking water and 1.4 billion without sanitation. What is clear is the magnitude of the problem facing the international community in terms of water supply and sanitation. Continuation of the status quo and the type of progress made during the 1990s will not permit the Johannesburg targets to be met. Instead it will be necessary to promote a combination of many different, new and innovative approaches, each of which will contribute towards the overall targets. These approaches must include technological advances that identify new sources and improve the quality of those already in use; managerial techniques that increase the efficiency and effectiveness of service delivery at both micro and macro scale; and fiscal approaches that tap into additional financial resources to make improvements affordable. In the past each of these aspects was seen as primarily the responsibility of government, which supported research into technology, managed supply and disposal systems and provided the funds to pay for them. This view has changed – beginning in the 1980s and increasing in the 1990s with growing moves towards privatisation of many aspects of the water sector. Underpinning this has been a shift away from seeing water as a public good that is essential for life, with subsidised supply provided as part of an overall welfare system, to a more market-oriented approach where the state, although still responsible for maintaining universal access to water services, uses market forces to meet this aim. The Business of Water and Sustainable Development aims to illustrate the range of approaches that will be necessary if the percentage of the global population having access to adequate and safe water and sanitation is to be increased in line with the brave assertions from Johannesburg World Summit on Sustainable Development. Some of approaches will be large-scale "Western-style" improvements involving the creation of new business models, their effectiveness assessed by traditional approaches of fiscal and social analysis. Such schemes may be instigated and partly funded by governments, but are increasingly turning to the private sector for money and expertise. In contrast, many smaller communities would be better served by following another path to improved water supply and sanitation. Because of their size, location or traditions they may achieve better results through the adoption of local small-scale solutions. Non-governmental organisations have been very active in this area, but to extend their operations many are seeking to adopt a more business-like model. All water supply and waste disposal agencies, large or small, need to support and encourage continued research into technological solutions that seek out better, more sustainable ways to use our increasingly scarce supplies of good-quality fresh water.

Author: Stepan Wood
Publisher: Edward Elgar Publishing
ISBN: 1788114736
Category : Political Science
Languages : en
Pages : 413

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Book Description
From agriculture to sport and from climate change to indigenous rights, transnational regulatory regimes and actors are multiplying and interacting with poorly understood effects. This interdisciplinary book investigates whether, how and by whom transnational business governance interactions (TBGIs) can be harnessed to improve the quality of transnational regulation and advance the interests of marginalized actors.

Author: Jane Beckett-Camarata
Publisher: Emerald Group Publishing
ISBN: 183909656X
Category : Political Science
Languages : en
Pages : 280

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Book Description
Through the introduction of a new lens through which to view infrastructure finance policy, this book analyses the role of Public Private Partnerships within the context of long-term capital investment and improvement planning, and as a critical aspect of effective long-term capital infrastructure finance policy.

Author: Srithongrung, Arwiphawee
Publisher: IGI Global
ISBN: 1522573305
Category : Business & Economics
Languages : en
Pages : 400

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Book Description
To create an enhanced quality of life, attract business relocation, and enhance equity in access to public infrastructure, governmental bodies must take certain precautions with their money. Budgeting at such a high level requires careful evaluation and research that addresses every aspect of financial management. Capital Management and Budgeting in the Public Sector provides emerging research exploring the theoretical and practical aspects of long-term capital planning, annual capital budgeting, capital budget execution, and public spending evaluation. Featuring coverage on a broad range of topics such as fiscal federalism, political regime, and project execution management, this book is ideally designed for managers, accountants, professionals, practitioners, and researchers working in the areas of public finance and/or international development.

Author: Ginés de Rus
Publisher: Edward Elgar Publishing
ISBN: 1839103752
Category : Business & Economics
Languages : en
Pages : 256

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Book Description
This thoroughly updated second edition incorporates key ideas and discussions on issues such as wider economic impacts, the treatment of risk, and the importance of institutional arrangements in ensuring the correct use of technique. Ginés de Rus considers whether public decisions, such as investing in high-speed rail links, privatizing a public enterprise or protecting a natural area, may improve social welfare.