PROJECT FINANCE: Incentives and Governance


Jan 13, 2014 — Neil Boyle

The traditional financial engineering risk-return approach to PPP infrastructure finance goes far but not far enough.  PPPs are often financed with high or even aggressive debt/equity ratios ranging from 80:20 and occasionally reaching the mid 90s.  TCE/NIE tells us that the principals of infrastructure projects are typically bilaterally dependent due to ...

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Economic Governance Made Intelligible

Jan 10, 2014 — Neil Boyle

Economic governance was made intelligible when Williamson postulated (1975) that markets and firms are distinct governance structures of transactions where governance costs vary with the asset specificity of the exchange asset. The asset specificity of transaction-specific assets carries critical information concerning the incentives of the asset owners. It gives rise ...

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UPDATED – Putting PPP Government Bureaucratic Problems into an Analytical Framework – PART – IIa

Aug 28, 2010 — Neil Boyle

In Part–IIa, we discuss the game changing government bureaucratic problems that arise in the development and tendering of BOT PPP projects. INFRAGOV associates in Manila, Dr. Ramon Clarete and Mr. Hector Florento brought bureaucracy problems to my attention. Both are working to resolve bureaucracy problems in their country and continue ...

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Jul 19, 2010 — Neil Boyle

UPDATED - TCE PRECEPTS FOR ANALYZING INSTITUTIONS 07-19-2010 ver 3C Please click on the above link to see the updated version of what I consider one of my important posts.  It is important because it concentrates in one file the beginning of what I have learned over the past 10 years of studying ...

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Putting PPP Government Bureaucratic Problems into an Analytical Framework — PART – I

Jun 17, 2010 — Neil Boyle

Updated in red on May 15, 2010. This problem was brought to my attention by Hector Florento, Governance Advisor for the Philippine government and Dr. Ramon Clarete, Professor of Economics at the University of the Philippines in Manila, both of whom are Associates of Infragov LLC (you can read their ...

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Vertical Integration as Paradigm: A graphical representation of TCE

Technical Notes

May 25, 2010 — Neil Boyle

VERTICAL INTEGRATION AS PARADIGM - A graphical representation of TCE 5-25-2010 One of many amazing accomplishments of Professor Williamson and to which we benefit from today was his extraction in reduced mathematical form (1996. pp. 106-111) of the basic structure of economic exchange.  Notwithstanding reduced form mathematics, we can generate new ...

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A Stylized Case Study:Deriving Economic Governance

Case Studies

Mar 15, 2010 — Neil Boyle

Updated on April 15, 2010 (in red font) for greater clarity on the topic of operationalizing transaction costs. In the 1960s, economists started actively pursuing research in institutional economics to great success and we see that success in: Transaction Cost Economics (TCE), Agency Theory (AT), and Property Rights Economics (PRE), among others, which ...

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