EFFICIENT PUBLIC‐PRIVATE CAPITAL STRUCTURES. (March 2014)

• Record Type: Journal Article
• Authors: MOSZORO, Marian; Marra, A.; Cruz, N.F.; Fecher, F.; Marques, R.C.
• Is Part Of: Annals of public and cooperative economics. Volume 85:Number 1(2014:Mar.)
• Page Start: 103
• Page End: 126
• Publication Date: 2014-03
• Subjects: Cooperative societies -- Periodicals; 336
• DOI: 10.1111/apce.12028
• Languages: English
• ISSNs: 1370-4788

Abstract

<abstract abstract-type="main" xml:lang="en"> <title>ABSTRACT</title> <p>This paper presents a rationale for hybrid public‐private capital structures in public utilities. The public sector can borrow money cheaper, while private investors can spawn life‐cycle cost savings. When investment vehicles enable the internalization of the financial advantage of the public sector and the managerial advantage of the private sector, a Pareto‐efficient capital structure is achieved with both the public and private parties as shareholders. I show how different knowledge transfer schemes determine the optimal shareholding structure for the utility company.</p> </abstract>