TY - JOUR T1 - Improving Economic Efficiency of Public-Private Partnerships for Infrastructure Development by Contractual Flexibility Analysis in a Highly Uncertain Context JF - The Journal of Structured Finance SP - 87 LP - 99 DO - 10.3905/jsf.2010.2010.1.002 VL - 16 IS - 1 AU - Feng Dong AU - Nicola Chiara Y1 - 2010/04/30 UR - https://pm-research.com/content/16/1/87.abstract N2 - Public-private partnerships (PPPs), as long-term contractual relationships between the public and private sector, are usually controlled by a rigid contractual structure. This principle can reduce transaction costs but sacrifice opportunities to make PPPs more economically efficient by allocating and addressing future downside risks appropriately and flexibly during a long-term concession, which is full of unpredictable uncertainties that cause the failure of many infrastructure development projects under PPPs procurement. This article aims to present a novel type of proactive uncertainty management, contractual flexibility analysis (CFA), which can improve the economic efficiency of PPPs by incorporating flexibilities into the current way of contract structuring.TOPICS: Volatility measures, downside-only measures ER -