THE SIMPLE MICROECONOMICS OF PUBLIC-PRIVATE PARTNERSHIPS

  Under a public-private partnership (hereafter abbreviated as PPP), a local authority or a central-government agency enters a long-term contract with a private supplier for the delivery of some services. The supplier takes responsibility for building infrastructure, financing the investment, and then managing and maintaining this facility. Although PPPs are an ancient phenomenon, they were not studied seriously by scholars until the late 1980s, when they began to be adopted in public administration and management in both developed and developing countries. PPPs have been a topic of political controversy and scholarly debate, especially regarding the advantages and disadvantages of PPPs in comparison with traditional government-run services and the nature of the partnerships they bring about. PPPs embrace public-sector partnerships with both businesses and organizations in civil society, including community organizations,voluntary organizations, and ...