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The Indiana Toll Road Lease as an Intergenerational Cash Transfer
Author(s) -
Gilmour John B.
Publication year - 2012
Publication title -
public administration review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.721
H-Index - 139
eISSN - 1540-6210
pISSN - 0033-3352
DOI - 10.1111/j.1540-6210.2012.02589.x
Subject(s) - lease , toll , finance , toll road , revenue , payment , business , cash , government (linguistics) , general partnership , asset (computer security) , economics , linguistics , philosophy , genetics , computer security , computer science , biology
In a recent incarnation of the public–private partnership, state or city governments agree to lease revenue‐producing assets to a private operator for a lengthy period, up to 99 years. The government receives an up‐front payment, allowing it to collect many years of future revenue at once. This article evaluates the distributional consequences across time of one asset lease, the Indiana Toll Road. The analysis finds that the majority of benefits, in the form of road construction, are enjoyed in the early part of the lease, while the bulk of the costs fall late in the lease, raising important questions about intergenerational fairness.