Multidimensional auctions are a natural and practical solution when auctioneers pursue more than one objective in their PPP transactions. However, it is difficult to achieve auction efficiency with multiple award criteria. Using auction data from road and railway concessions in Latin America,...

This article develops a theoretical framework to analyze options for financing infrastructurein developing countries. We build a basic model that gives motivations for usinga combination of public finance, private debt and private equity. The model is thenextended in a number of ways to examine...

This paper presents an empirical analysis of the recent impact of fiscal decentralization in Europe on total expenditure for specific government functions as well as on total government size. A panel dataset for the years 2000 to 2009 for European countries has been constructed from EUROSTAT...

This paper reviews the theoretical debates on the extent to which PPP demands changes in how cost-benefit analysis needs to be conducted for public projects. It presents first a simple conceptual discussion which shows that the comparison between PPP and public procurement boils down to: (i) the...

In a model of horizontal matching on the labor market, we show that increasing the bargainingpower of workers may increase the incentive of some employers to switch to newproduction activities. In particular, this could lead to (i) higher wages, (ii) more jobs, (iii)better jobs and (iv) higher...

We study a political system in which voters can optimally pick between political platforms,but cannot screen the quality of individual politicians associated with these platforms.A bad individual achievement can correspond to either incompetence (adverse selection) orcorruption (moral hazard)....