抄録
In this paper, the optimal timing of investment, defined as the time at which the net benefit of the project is maximized, from the public and private perspectives are derived. Because of the differing views of these sectors, public and private optimal timing may not coincide, thus creating an optimal timing gap. However, coordination between these sectors is important considering the increasing convergence for more private sector participation in providing public goods such as transportation and to achieve maximum social benefits even under this condition. Policies used in developing countries for encouraging private sector participation are examined for effectiveness in narrowing this timing gap. These include tax holiday, increased debt ratio, longer loan repayment period, special interest rate used in the computation of the loan annual amortization, and lump-sum financial subsidy. Criteria for perfect synchronization as well as acceptability of lump-sum financial subsidy are formulated.
