This paper offers a theory of how the degree of corruption that prevails in a society responds to changes in the ownership structure of major public service providers. We show that there are cases in which privatization, even though it fosters investments in infrastructure, also opens the door...

Numerous renegotiations have plagued Latin American infrastructure concession contracts in the 1990s, to the point that private sector involvement is being questioned in some countries. This issue has been analyzed in a series of papers by <link rid="b16 b17 b18">Guasch et al. (2003, 2006a, 2006b)</link>. After putting these...

High rates of contract renegotiation have raised serious questions about the viability of the concession model to attract private participation in infrastructure in developing countries. After extending in reduced form a standard regulation model, in which renegotiation occurs due to the...

(Disponible en idioma inglés únicamente) Hay un abundante cúmulo de elementos de juicio empíricos que vinculan a las instituciones que funcionan bien y la buena gestión gubernamental con mejores resultados económicos y sociales. Determinar qué combinación de factores produce mejores...

Abundant empirical evidence links well-functioning institutions and good governance to better economic and social outcomes. It is thus an important challenge to determine which conjunction of factors produces better institutions. Along this line, the objective of this paper is twofold. First, it...

We construct a regulation model in which renegotiation occurs due to the imperfect enforcement of concession contracts. This enables us to provide theoretical predictions for the impact, on the probability of renegotiation of a concession, of regulatory policy, institutional features, economic...

Many developing countries are unable to provide their industrial sectors with reliable electric power, with the result that many enterprises must contend with an insufficient and unreliable supply of electricity. Because of these constraints, enterprises often opt for self-generation of...

In 2008, an opposition coalition defeated the Paraguayan Colorado Party, which had been in power for 61 years, including 35 years of the longest dictatorship in South America. Using data of all the public procurement transactions from 2004 through 2011 and the political connections of the 700...