We model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large panel of Italian firms. Empirical results show that infrastructure interacts with revenues and costs in shaping firm’s profitability of capital and influences ...

This article provides a framework to guide the choice and design of a fitting Public Private Partnerships (PPP), which is applied to a Dutch example of biogas/sustainable energy projects. The framework focuses on ‘legitimate public governance’, merging Beetham’s dimensions of legitimacy (legality, shared beliefs and consent) with three types of governance mechanisms (market, network and hierarc...