Local and territorial determinants in the realization of public–private–partnerships: an empirical analysis for Italian provinces

Mazzola, Fabio; Cusimano, Alessandro; Giacomo, Giuseppe Di; Epifanio, Rosalia

doi:10.1080/09654313.2019.1640187

Cited by 5 publications

(5 citation statements)

References 28 publications

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“…In contrast, one study finds a negative relationship between the budget deficit and the value of PPPs and justifies it on the basis of the loss of credibility of high-debt governments (Mota and Moreira, 2015). One concludes that PPPs are not significantly related to budgetary results (Mazzola et al, 2019). Overall, the findings suggest that PPPs are employed as mechanisms to circumvent budgetary restrictions that fuel an "availability illusion".…”

Section: How Relevant Is the Off-balance-sheet Motive In Ppp Adoption?mentioning

confidence: 92%

Public Private Partnership and fiscal illusion: A systematic review

Cepparulo

Eusepi

Giuriato³

2019

J Infrastruct Policy Dev

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Public-Private Partnerships (PPPs) are mostly presented as a means to introduce efficient procurement methods and better value for money to taxpayers. However, the complexity of the PPP mechanism, their lack of transparency, accounting rules and implicit liabilities make it often impossible to perceive the amount of public expenditure involved and the long-run impact on taxpayers, providing room for fiscal illusion, i.e., the illusion that PPPs are much less expensive than traditional public investments. This psaper, thanks to a systematic review of the literature on the EU countries experience, tries to unveil the sources of this illusion by looking at the reasons behind the PPPs’ choice, their real costs, and the sources of fiscal risks. The literature suggests that PPPs are more costly than public funding, especially when contingent liabilities are not taken into account, and are employed as mechanisms to circumvent budgetary restrictions and to spend off-balance. The paper concludes that the public sector should share more risks with private sectors by reducing the amount of guarantees, and should prevent governments from operating through a sleight of hand that deflects attention away from off-balance financing, by applying a neutral fiscal recording system.

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Section: How Relevant Is the Off-balance-sheet Motive In Ppp Adoption?mentioning

confidence: 92%

Public Private Partnership and fiscal illusion: A systematic review

Cepparulo

Eusepi

Giuriato³

2019

J Infrastruct Policy Dev

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“…It is characterized by a high incidence of zeros (around 40% of the sample) that correspond to real observations. Previous literature coped with this issue by estimating 5 either a Tobit model (Mazzola et al 2019 ; Checherita 2009 ; Banerjee, et al 2006 ) as a corner solution model 6 , or a panel data model (Random effect: Kasri and Wibowo 2015 ; Mengistu 2013 , Fixed effect: Moszoro et al 2017 ; Panel Corrected Standard Errors: Mota and Moreira 2015 ), or a two-stage model like the Heckman election model (Reyes-Tagle and Garbacik 2016 ).…”

Section: Methodological Approachmentioning

confidence: 99%

“…It is characterized by a high incidence of zeros (around 40% of the sample) that correspond to real observations. Previous literature coped with this issue by estimating 5 either a Tobit model (Mazzola et al 2019;Checherita 2009;Banerjee, et al 2006) Preliminary analysis of the data guides our model selection. According to the Hausman test 7 (given the presence of heteroscedasticity checked via the Wald test 8 ), the fixed-effects estimator is better fitted for our sample.…”

Section: Methodological Approachmentioning

confidence: 99%

“…These considerations invite to a closer examination of PPPs and their interplay with budgetary constraints and fiscal rules. The choice of PPPs has already been examined by the literature in relation to the state of public finances (Antellini Russo and Zampino, 2012;Buso et al 2017;Albalate et al 2015;Mazzola et al 2019;Mota and Moreira 2015), but, to the best of our knowledge, not in relation to various types of domestic and supra-national rules and their stringency.…”

Section: Introductionmentioning

confidence: 99%

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Public Finance, Fiscal Rules and Public–Private Partnerships: Lessons for Post-COVID-19 Investment Plans

2023

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We explore the distribution of public–private partnerships (PPPs) among the European Union countries, with a special focus on fiscal rules and budgetary constraints while controlling for empirically identified drivers. While offering the opportunity to increase innovation and efficiency in the public sector infrastructure, PPPs allow governments to relax their budget and borrowing constraints. We find that the state of public finances influences the government’s choice of PPPs and makes them more appealing for reasons other than efficiency. Stringent numerical rules on the budget balance also foster government’s opportunism in the choice of PPPs. On the other hand, high levels of public debt increase the country risk, and discourage private investors from PPP contracts. The results highlight the importance of restoring PPP investment choices based on efficiency criteria and adapt fiscal rules to shield public investment while stabilizing private expectations by means of credible trajectories of debt reduction. The findings contribute to the debate on the role of fiscal rules in fiscal policy and of PPPs in infrastructure financing.

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“…The term "public-private partnership" is widely used in both foreign and Kazakh theory and practice as a generalised concept denoting the entire spectrum of relations between the state and business. The main objective of cooperation between the state and business is the creation of a new facility (or renovation of an existing facility) to provide public services or to improve the quality of public services provided by the state (public) authorities and private companies that combine their experience, assets, and other resources; public and private partners identify and share potential risks and revenues (income) from users of public services (Mazzola et al, 2019). The economic effect for society from partnerships between the state and the private sector is that it receives better public goods and services upon reducing costs.…”

Section: Introductionmentioning

confidence: 99%

Public-Private Partnership in Conditions of Innovative Development of the Republic of Kazakhstan

Sadykova

2021

PPAdm

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The relevance of the subject matter is conditioned by the fact that the innovative development of the Republic of Kazakhstan, which is based on the introduction of technological advances, the use of computer and resource-saving technologies, industrial and innovative achievements, is currently of great importance for the country’s economy. The paper aims to prepare recommendations for the development of public-private partnerships (PPP) in the conditions of innovative development of the Republic of Kazakhstan. The leading methods of researching the issues of the paper include the analysis of theoretical sources, analysis of statistics, and comparison. The analysis of statistical indicators plays a crucial role in the study since data on the innovation level on the development of PPP can be directly obtained from statistical databases. The research results showed that for the development of projects that are carried out on an innovative basis, cooperation between the state and business is necessary. Certain risks and consequences are inherent in innovative projects. Therefore, such projects require private partners who agree to PPP even under unstable political, economic and social conditions and also have corresponding production and innovative potential. Given the improvement of the regulatory framework at the national and regional levels, increasing the attractiveness of such cooperation, and providing comprehensive support for such projects, a partnership between the state and business in the innovation sector will develop. The scientific novelty of the research is determined by the fact that the method of analysis of statistical indicators was used for the first time to analyse the concept of PPP in the context of the innovative development of the Republic of Kazakhstan. The observations of the paper have practical value for the development of PPP in the conditions of innovative development of the Republic of Kazakhstan.

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Local and territorial determinants in the realization of public–private–partnerships: an empirical analysis for Italian provinces

Cited by 5 publications

References 28 publications

Public Private Partnership and fiscal illusion: A systematic review

Public Private Partnership and fiscal illusion: A systematic review

Public Finance, Fiscal Rules and Public–Private Partnerships: Lessons for Post-COVID-19 Investment Plans

Public-Private Partnership in Conditions of Innovative Development of the Republic of Kazakhstan

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