frequent formal renegotiation, having a higher tendency to litigate, and providing weaker incentives. In sum, public contracts …, standardized, bureaucratic, rigid procedures. Common wisdom sees public contracts as generally more inflexible, requiring more … the different hazards present in public and purely private contracts, which directly impact the nature of the resulting …

that if PPP investments are counted as current government spending, the incentives to renegotiate contracts to increase … existing accounting standards allow governments to renegotiate PPP contracts and elude spending limits. Our model of … renegotiations in the early stages of the contract, e.g. during construction. We use data on Chilean renegotiations of PPP contracts …