A SURVEY OF ECONOMIC RESEARCHES ABOUT PFI IN JAPAN

Abstract

Economic researches about PFI have implications for both policy and practice. Particularly in Japan, the number of PFI projects has been increasing in recent years, and the importance of economic researches focus on PFI have been growing. The purpose of this paper is identifying the issues and implications of economic researches about Japanese PFI projects. We find that (1) the theoretical researches have developed on the basis of contract theory and have obtained results that are consistent with previous researches in other countries, and (2) the empirical researches have used data on PFI projects in Japan to auction theory and contract theory, and have obtained results that support the points made in these theories. On the other hand, empirical studies are limited in their analysis due to data constraints, and challenges remain for the further development.