141,869 research outputs found
The simple micro-economics of public-private partnerships
We build a unified theoretical framework to analyze the main incentive issues in Public Private Partnerships (PPPs) and the shape of optimal contracts in those contexts. We present a basic model of procurement in a multitask environment in which a risk-averse agent chooses unobservable efforts in cost reduction and quality improvement. We begin by studying the effect on incentives and risk transfer of bundling building and operation into a single contract, allowing for different assumptions on the contractual framework and the quality of the information held by the government. We then extend the basic model in several directions. We consider the factors that affect the optimal allocation of demand risk and their implications for the use of user charges and the choice of contract length. We study the relationship between the operator and its financiers and the impact of private finance. We discuss the trade-off between incentive and flexibility in long-term PPP agreements and the dynamics of PPP contracts, including cost overruns. We also consider how the institutional environment, and specifically the risk of regulatory opportunism, affects contract design and incentives. We conclude with some policy implications on the desirability of PPPs
The Use of Catastrophe Bonds as a Means of Economic Development in Emerging Economies
Catastrophe bonds offer a way for entities located in natural disaster prone regions to safely and efficiently transfer the risk of insuring property to the financial markets and subsequently, create a financially attractive environment for insurers and investors. The opportunity for investors to utilize modeled loss analytical platforms such as those created by AIR, Risk Management Solutions, and EQECAT, could be used to bridge the growing gap in emerging economies between economic losses created by natural disasters and insured losses. Bridging this insurance gap in emerging economies could have positive global implications for the insurance industry, global trade, foreign direct investment, and the average humanitarian aid spent on natural disaster recovery and resistance. Apart from the additional profits that could be generated from increased underwriting in emerging economies, introducing catastrophe and property insurance to emerging economies could create a road map for other emerging economies who are struggling to balance economic development with disaster financing. Experience from sovereigns which have experimented with this method of risk transfer, such as Haiti and Mexico offer a basis for understanding the advantages and difficulties associated with developing a country specific modeled loss analytical platform for measuring natural hazard risks
Global Trade Impacts: Addressing the Health, Social and Environmental Consequences of Moving International Freight Through Our Communities
Examines freight transportation industry trends; the impact of global trade on workers, the environment, and health in both exporting and importing countries; and organizing strategies and policy innovations for minimizing the damage and ensuring health
Financial Innovations Roundtable: Developing practical solutions to scale up integrated community development strategies
Essays from experts affiliated with the “think-do” tank , the Financial Innovations Roundtable, housed at the Carsey Institute at the University of New Hampshire
Drivers constraints and the future of off-site manufacture in Australia.
Much has been written on Off-site Manufacture (OSM) in construction, particularly regarding the
perceived benefits and barriers to implementation. However, very little understanding of the state of
OSM in the Australian construction industry exists. A ‘scoping study' has recently been undertaken to
determine the ‘state-of-the-art’ of OSM in Australia. This involved several industry workshops,
interviews and case studies across four major states of Australia. The study surveyed a range of
suppliers across the construction supply-chain, incorporating the civil, commercial and housing
segments of the market. This revealed that skills shortages and lack of adequate OSM knowledge are
generally the greatest issues facing OSM in Australia. The drivers and constraints that emerged from
the research were, in large measure, consistent with those found in the US and UK, although some
Australian anomalies are evident, such as the geographical disparity of markets. A comparative
analysis with similar studies in the UK and US is reported, illustrating both the drivers and constraints
confronting the industry in Australia. OSM uptake into the future is however dependent on many
factors, not least of which is a better understanding of the construction process and its associated
costs
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Technology without borders: case studies of successful technology transfer
Technology Without Borders presents case studies of successful transfer of climate-friendly technology and practices. It explores the causes for success and draws the lessons learned. Key messages are presented for the fight against climate destabilisation. The terms “climate-friendly technology” and “climate technology” used here refer to technologies, practices or techniques, which reduce greenhouse-gas emissions or assist countries in adapting to climate change
The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing
Since 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.http://deepblue.lib.umich.edu/bitstream/2027.42/40165/3/wp779.pd
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Financial services for SME fisheries: the case study of South Africa
The primary objective of the South Africa case study has been to assess the availability of and access to financial services by SMEs in the fisheries sector. Fieldwork took place during 6-12 March 2011 in Cape Town, Port Elizabeth and Port St Francis, while desk research provided background information about the overall context of the economy and the fisheries sector in South Africa. This summary highlights key findings surrounding three areas: (1) overall context of finance for fisheries in South Africa; (2) current external and internal constraints to the development of the squid and tuna sectors; and (3) financial models for SMEs in the fisheries sector
The theory of incentives applied to the transport sector
Building upon Iossa and Martimort (2008), we study the main incentive issues and the form of optimal contracts for Public Private Partnerships (PPPs) in transports. We present a basic model of procurement in a multitask environment in which a risk-averse firm chooses unobservable efforts in infrastructure and service quality. We begin by analyzing the effect on incentives and risk transfer of bundling building and operation into a single contract. We consider the factors that affect the optimal allocation of demand risk and their implications for the choice of contract length. We discuss the dynamics of PPP contracts and how the risk of regulatory opportunism affects contract design and incentives
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