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  • Protecting taxpayers when a privatization partner goes bust

    Government Technology - 10/07/2014

    Northeastern University Professor Joseph M. Giglio has proposed splitting roadway ownership three ways. The third class of owners — banks, utilities and retailers whose revenue is dependent on regional economic activity — have an interest in good service at acceptable toll rates. Their influence would balance the often conflicting interests of government, which wants to keep motorists’ prices down, and private investors that want to maximize profits. Since it would likely be unwieldy for existing roads to shift to this approach, however, it might be most appropriate for fast-growing areas seeking new capacity.

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