Buso M., Marty F., Phuong T. T. (2014).
Public Private Partnerships from Budget Constraints: Looking for Debt Hiding?. Marco Fanno Working Paper n.189-2014.
In this paper, we examine whether budget-constrained public authorities are more likely to use a PPP (Public Private Partnership) than traditional procurement methods. Then, we study the possible mechanisms underlying this choice. Our empirical test focuses on France and consists of a two-stage approach. First, we examine the impact of budget constraints on the use of PPPs and find a positive relationship. Second, to better delineate the debt hiding effect, we exploit the 2011 changes to the ability to underwrite PPP debts. We find that debt hiding is a relevant, but not a sucient element to explain budget-constrained governments’ attitudes towards PPP.