Political Stability and the Contribution of Private Public Investment Commitments in Infrastructure to GDP: An institutional Perspective

Description :

New institutional economics and transaction costs economics assert the importance of political stability as the primary determinant of an economy’s institutional quality. Rallying both perspectives, this research project investigates the impact of political stability on public-private partnerships’ performance. A political system founded on impersonal organizations corrects for the natural monopoly characteristics of public services by eroding rents and decreasing transaction costs stemming from the public partner’s opportunism.