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- handle: 10670/1.xtz3yx
- hal: hal-03166092
- doi: 10.1016/j.jdeveco.2021.102629
- PII: S0304-3878(21)00006-7
- WOS: 000633044400005
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jdeveco.2021.102629
http://creativecommons.org/licenses/by-nc/ , info:eu-repo/semantics/OpenAccess
Mots-clés
Infrastructure Private finance RegulationCiter ce document
Marianne Fay et al., « Funding and financing infrastructure: the joint-use of public and private finance », HAL-SHS : économie et finance, ID : 10.1016/j.jdeveco.2021.102629
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Résumé
Attracting private nancing is high on the agenda of policy makers concernedwith closing the infrastructure gap in developing countries. To date, however, private nance represents a minor share of overall infrastructure financing and the poorest countries struggle to attract any private investors. This paper develops a model that rationalizes these facts. We characterize the structure of financial and regulatory infrastructure contracts and derive conditions under which public and private finance coexist. This requires a combination of regulated prices and public subsidies sufficiently attractive for outside nanciers pointing at a fundamental trade-off between financial viability and social inclusion. While improvementsin the efficiency of bankruptcy procedures facilitate access to private finance, institutional changes l owering the cost of public funds make public finance more attractive.