Funding and financing infrastructure: the joint-use of public and private finance

Marianne Fay, David Martimort and Stephane Straub
Additional contact information
Marianne Fay: The World Bank

Post-Print from HAL

Abstract: 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.

Keywords: Infrastructure; Private finance; Regulation (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-mic
Note: View the original document on HAL open archive server: https://hal.science/hal-03166092v1
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in Journal of Development Economics, 2021, 150, ⟨10.1016/j.jdeveco.2021.102629⟩

Downloads: (external link)
https://hal.science/hal-03166092v1/document (application/pdf)

Related works:
Journal Article: Funding and financing infrastructure: The joint-use of public and private finance (2021)
Working Paper: Funding and financing infrastructure: the joint-use of public and private finance (2021)
Working Paper: Funding and financing infrastructure: the joint-use of public and private finance (2021)
Working Paper: Funding and financing infrastructure: the joint-use of public and private finance (2021)
Working Paper: Funding and financing infrastructure: The joint-use of public and private finance (2019)
Working Paper: Funding and financing infrastructure: the joint-use of public and private finance (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03166092

DOI: 10.1016/j.jdeveco.2021.102629

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().