Ribeiro, João Adelino; Pereira, Paulo Jorge; Brandão, … - Faculdade de Economia, Universidade do Porto - 2013
should motivate the government to include a contractual penalty in case the private firm does not implement the project … variations both in the correlation coefficients and in the standard deviations have a strong impact on the optimal contractual … penalty. Sensitivity analysis also demonstrates that there is a level of social costs above which the inclusion of a legal …