Public-Private Partnership and fiscal illusion. A systematic review
Public-Private Partnerships (PPPs) are presented as means to introduce efficient procurement methods and better value for money to taxpayers. However, the complexity of the PPP mechanism, the lack of transparency, accounting rules and implicit liabilities make it often impossible to perceive the amount of public expenditure involved and the long-run impact on taxpayers, providing room for fiscal illusion, i.e., the illusion that PPPs are much less expensive than traditional public investments.