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Multidimensionality and Renegotiation : Evidence From Transport-Sector Public-Private-Partnership Transactions in Latin America / Estache, Antonio
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Estache, Antonio
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Costs.
- Debt Markets.
- Diesel.
- Finance and Financial Sector Development.
- Infrastructure.
- Infrastructure development.
- Infrastructure Economics.
- Infrastructure Economics and Finance.
- Policies.
- Railway.
- Railway industry.
- Road.
- Transparency.
- Transport.
- Transport Economics, Policy and Planning.
- Local Subjects:
- Costs.
- Debt Markets.
- Diesel.
- Finance and Financial Sector Development.
- Infrastructure.
- Infrastructure development.
- Infrastructure Economics.
- Infrastructure Economics and Finance.
- Policies.
- Railway.
- Railway industry.
- Road.
- Transparency.
- Transport.
- Transport Economics, Policy and Planning.
- Physical Description:
- 1 online resource (30 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2008
- System Details:
- data file
- Summary:
- Multidimensional auctions are a natural and practical solution when auctioneers pursue more than one objective in their public-private-partnership transactions. However, it is difficult to achieve auction efficiency with multiple award criteria. Using auction data from road and railway concessions in Latin America, the probability of renegotiation this paper estimates by a two-stage least squares technique with a binary selection in the first-stage regression. The findings show that auctioneers tend to adopt the multidimensional format when the need for social considerations, such as alleviation of unemployment, is high. This implies that such political considerations could hinder efficiency and transparency in auctions. The analysis also shows that the renegotiation risk in infrastructure concessions increases when multidimensional auctions are used. Rather, good governance, particularly anti-corruption policies, can mitigate the renegotiation problem.
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