Over the last few decades, public-private partnerships have been increasingly used by governments around the world to finance and manage complex operations. Doubts about their efficiency have been raised, however. Criticism of public-private partnerships reflects the fact that governments tend...

As Portugal is facing strong fiscal pressure, government spending on public-private partnerships (PPPs) in the road sector has become a main budgetary constraint. In this article, we show how the financial crisis has created a unique arbitrage opportunity that provides a solution to this...