%0 Journal Article %A Feng Dong %A Nicola Chiara %T Improving Economic Efficiency of Public-Private Partnerships for Infrastructure Development by Contractual Flexibility Analysis in a Highly Uncertain Context %D 2010 %R 10.3905/jsf.2010.2010.1.002 %J The Journal of Structured Finance %P 87-99 %V 16 %N 1 %X 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 %U https://jsf.pm-research.com/content/iijstrfin/16/1/87.full.pdf