ISTITUTO SUPERIORE DI STUDI IN AMMINISTRAZIONE PUBBLICA
- Fiscal decentralization and Public Private Partnerships: A means of improving efficiency in the delivery of public goods and services?
Projet FNS Division 1 (recherche fondamentale):
The aim of our project is to shed light on two main topics regarding decentralization and the organizational forms of public service delivery. The first part of the project is an attempt to overcome some limitations of the tax competition literature and account for the possibility for firms to behave strategically and have heterogeneous risk preferences. The second part tries to bridge the gap between the literatures on fiscal federalism and on PPPs in order to analyze how different forms of decentralization and the resulting fiscal arrangements between different tiers of governments impact the choice of PPPs at both the central and local level. The methodology used in the two parts of the project is based primarily on game theory with asymmetry of information and the
theory of auctions. The project also has a strong empirical dimension based on an extensive use of spatial econometrics with the goal of providing policy makers with guidelines regarding the effects of “tax wars” between local governments and the efficiency of PPPs in different institutional settings.