Demi Chung | The University of New South Wales (original) (raw)
Papers by Demi Chung
Public-Private-Partnerships (PPPs) are a public procurement policy that argues in support of grea... more Public-Private-Partnerships (PPPs) are a public procurement policy that argues in support of greater value for money through optimal risk-sharing, by aligning incentives among parties who are profoundly different in terms of interests, objectives and risk preferences. The subject of interest in this thesis is tollroads that are procured under the PPP method, which traditionally involves the transfer of demand risk to the private sector.
Despite the popular and public policy interest in housing prices, there have been few reliable pu... more Despite the popular and public policy interest in housing prices, there have been few reliable published data for housing prices in Australia. In this paper we aim to provide an authoritative account of prices for houses and apartments (units) in Australia from 1970 to 2003. Where possible we draw on data from land title offices or on studies that draw on these data, but we also draw on supplementary data in some cases. The first part of the paper describes the major data sources on Australian house prices. The main body of the paper provides our best estimates of median house and unit prices and real price indices in the capital cities and in the rest of Australia along with explanations for their derivations. We also estimate how improvements in housing quality have influenced real house prices.
Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as... more Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as a public procurement policy. After two decades of experience, it is timely to evaluate the effectiveness of the policy. At the aggregate level, PPPs were launched to induce private participation in public infrastructures to covertly contrive the removal of visible public debt. Drawing from the social dynamic framework of interests (Broadbent & Laughlin, 2002), this paper shows that PPPs are a powerful procurement device to legitimise the social existence of the state. This article explores the experience of the first hospital (the Port Macquarie Base Hospital) and a recent toll road (the Cross City Tunnel) delivered under the Public Private Partnerships (PPPs) model in the State of New South Wales, Australia. The study shows that the policy has effectively established the market of PPPs in a variety of sectors. Lessons to be learnt from this paper include the need for policy makers to b...
Transportation Research Part A: Policy and Practice, 2018
Public private partnerships are rationalized on shared value creation by combining public sector ... more Public private partnerships are rationalized on shared value creation by combining public sector management and oversight with private sector resources for a direct provision of a public good or service. Yet little is known about what are the sources of value and the effects of contract control mechanisms for value appropriation. This paper explores this issue from the perspectives of both public sector agencies and private sector firms involved in the provision of toll roads. Using data collected from a stated choice experiment on toll road participation to obtain a composite measure of resource values, we find that resource values have little influence on decisions to form a partnership, while partner's (un)trustworthiness and social activism by external stakeholders have a discernible effect on their decisions. Mitigating controls moderate these influences. An internal coordination framework within the public organization and the enactment of institutional policy can help to reap the most from the combined resources for shared value creation, particularly when trust is yet to be established during the contracting phase.
Oxford Handbooks Online, 2017
The first public–private partnership (PPP) motorway in Australia was open to traffic more than tw... more The first public–private partnership (PPP) motorway in Australia was open to traffic more than two decades ago, and yet no comprehensive evaluation of PPPs in the road transport sector has been sighted. It is the intention of this chapter to fill this gap. Although there have been noticeable advancements in contract design and use of incentive mechanisms to optimize risk allocation between the public and private sectors, Australian PPP motorways have yet to deliver an optimal outcome. It is questionable whether the current risk-shifting approach in the present PPP paradigm is suitable for providing infrastructure-based road services where long-term service provision is a requirement. In such cases, a proactive risk management approach may be preferred.
This paper studies the proliferation of toll roads delivered under the Public Private Partnership... more This paper studies the proliferation of toll roads delivered under the Public Private Partnerships (PPPs) structure. It proposes to disentangle the intricate web of contractual relationships to examine the underlying objectives of certain PPP toll roads in the Australian state of New South Wales, and the effectiveness of their contractual and financial mechanisms in incentivising risk undertaking. At the aggregate level, PPP toll roads were implemented to induce the private participation in road operations with the view of gradually fulfilling the objective of cost savings to governments. This effort to entice the private sector has led to consistent erroneous traffic forecasts across projects. Although there have been noticeable advancements in contract design and incentive mechanisms to optimise the allocation of risks to the public and private sectors, PPP toll roads have yet to deliver optimal results. PPPs present a unique compounded agency problem. They have enabled governments to escape from public accountability and diluted the imperative of public interest consideration. The under-investigated public perception of PPP toll roads offers a scope for future research.
The assignment of property rights to incentivise risk-sharing in a principal-agent relationship i... more The assignment of property rights to incentivise risk-sharing in a principal-agent relationship is a recurrent theme of contract theory. This paper examines the incentive effects of property rights in a principal-agent relationship involving government as the principal, that is, the ownership concession model of public-private- partnership (PPP) procurement contracts for toll roads. Specifically, the paper investigates the effects of property rights on the agentrs preference for contract structure to manage risks and to exert performance effort; and the effects on both partiesr risk preferences when ownership transfer is being perceived as transferring accountability. Analysis of data collected through an online experiment surveying stakeholders who have been engaging in road contracts procured under the PPP model in 32 countries concludes that: (1) property rights offer the agent a protective shield against poor planning by the principal in the meantime gives rise to ex ante opportunism; (2) the agentrs reservation on ex post decision rights distorts allocative efficiency; and (3) revenue-sharing is a powerful incentive for non-revenue-enhancing performance effort. Further investigation attests that incentive effects of property rights can be enhanced through equitable allocation of risks; nevertheless, ex post efficiency is debilitated by considerations of political sensitivity concerning toll pricing.
Financial Accountability & Management, 2016
This study examines the unique issues, challenges and risks emerging at the end of a public-priva... more This study examines the unique issues, challenges and risks emerging at the end of a public-private partnership (PPP) concession. The M4 motorway is the first Australian PPP that has reached the end of its concession. The absence of formal guidance on contractual closure created challenges for the partners in interpreting contract ambiguities, and in reaching agreement on the processes needed to close the contract. These challenges had posed several relational risks, the mitigations of which were supported by the relational contract partners developed over the concession term, and their reciprocity and ethical motivations. The reintegration risk emerged in the handback exemplifies the limits of controls designed for legitimacy concerns to resolve coordination problems. The political settlement for value for money was gestured by lifting the toll after the concession ended. In providing unparalleled empirical evidence to against the long-term ‘myths’ of PPPs, the study counters the criticism over PPPs’ impossibilities to handle uncertainties and to transfer risk.
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy. The unsettled question is to what degree such strategy will continue to play handmaiden to more provincial concerns or whether this essential influence will to some degree be rev...
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas Investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy. The unsettled question is to what degree such strategy will continue to play handmaiden to more provincial concerns or whether this essential influence will to some degree be reversed.24 page(s
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy.
International Journal of Business and Globalisation, 2010
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese direct foreign investment appears to have greatly redefined itself over the postwar era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy.
This paper offers a systematic overview on the proliferation of tollroads delivered under the pub... more This paper offers a systematic overview on the proliferation of tollroads delivered under the public private partnerships structure in the Australian state of New South Wales. In particular, the study proposes to disentangle the intricate web of contractual relationships to understand the underlying objectives of different types of PPP tollroads and to evaluate the effectiveness of the contractual and financial mechanisms for encouraging risk undertaking. (a) For the covering entry of this conference, please see ITRD abstract no. E217541.
Handbook on Transport and Urban Planning in the Developed World, 2000
Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as... more Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as a public procurement policy. After two decades of experience, it is timely to evaluate the effectiveness of the policy. At the aggregate level, PPPs were launched to induce private participation in public infrastructures to covertly contrive the removal of visible public debt. Drawing from the social dynamic framework of interests (Broadbent & Laughlin, 2002), this paper shows that PPPs are a powerful procurement device to legitimise the social existence of the state. This article explores the experience of the first hospital (the Port Macquarie Base Hospital) and a recent toll road (the Cross City Tunnel) delivered under the Public Private Partnerships (PPPs) model in the State of New South Wales, Australia. The study shows that the policy has effectively established the market of PPPs in a variety of sectors. Lessons to be learnt from this paper include the need for policy makers to b...
Public-Private-Partnerships (PPPs) are a public procurement policy that argues in support of grea... more Public-Private-Partnerships (PPPs) are a public procurement policy that argues in support of greater value for money through optimal risk-sharing, by aligning incentives among parties who are profoundly different in terms of interests, objectives and risk preferences. The subject of interest in this thesis is tollroads that are procured under the PPP method, which traditionally involves the transfer of demand risk to the private sector.
Despite the popular and public policy interest in housing prices, there have been few reliable pu... more Despite the popular and public policy interest in housing prices, there have been few reliable published data for housing prices in Australia. In this paper we aim to provide an authoritative account of prices for houses and apartments (units) in Australia from 1970 to 2003. Where possible we draw on data from land title offices or on studies that draw on these data, but we also draw on supplementary data in some cases. The first part of the paper describes the major data sources on Australian house prices. The main body of the paper provides our best estimates of median house and unit prices and real price indices in the capital cities and in the rest of Australia along with explanations for their derivations. We also estimate how improvements in housing quality have influenced real house prices.
Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as... more Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as a public procurement policy. After two decades of experience, it is timely to evaluate the effectiveness of the policy. At the aggregate level, PPPs were launched to induce private participation in public infrastructures to covertly contrive the removal of visible public debt. Drawing from the social dynamic framework of interests (Broadbent & Laughlin, 2002), this paper shows that PPPs are a powerful procurement device to legitimise the social existence of the state. This article explores the experience of the first hospital (the Port Macquarie Base Hospital) and a recent toll road (the Cross City Tunnel) delivered under the Public Private Partnerships (PPPs) model in the State of New South Wales, Australia. The study shows that the policy has effectively established the market of PPPs in a variety of sectors. Lessons to be learnt from this paper include the need for policy makers to b...
Transportation Research Part A: Policy and Practice, 2018
Public private partnerships are rationalized on shared value creation by combining public sector ... more Public private partnerships are rationalized on shared value creation by combining public sector management and oversight with private sector resources for a direct provision of a public good or service. Yet little is known about what are the sources of value and the effects of contract control mechanisms for value appropriation. This paper explores this issue from the perspectives of both public sector agencies and private sector firms involved in the provision of toll roads. Using data collected from a stated choice experiment on toll road participation to obtain a composite measure of resource values, we find that resource values have little influence on decisions to form a partnership, while partner's (un)trustworthiness and social activism by external stakeholders have a discernible effect on their decisions. Mitigating controls moderate these influences. An internal coordination framework within the public organization and the enactment of institutional policy can help to reap the most from the combined resources for shared value creation, particularly when trust is yet to be established during the contracting phase.
Oxford Handbooks Online, 2017
The first public–private partnership (PPP) motorway in Australia was open to traffic more than tw... more The first public–private partnership (PPP) motorway in Australia was open to traffic more than two decades ago, and yet no comprehensive evaluation of PPPs in the road transport sector has been sighted. It is the intention of this chapter to fill this gap. Although there have been noticeable advancements in contract design and use of incentive mechanisms to optimize risk allocation between the public and private sectors, Australian PPP motorways have yet to deliver an optimal outcome. It is questionable whether the current risk-shifting approach in the present PPP paradigm is suitable for providing infrastructure-based road services where long-term service provision is a requirement. In such cases, a proactive risk management approach may be preferred.
This paper studies the proliferation of toll roads delivered under the Public Private Partnership... more This paper studies the proliferation of toll roads delivered under the Public Private Partnerships (PPPs) structure. It proposes to disentangle the intricate web of contractual relationships to examine the underlying objectives of certain PPP toll roads in the Australian state of New South Wales, and the effectiveness of their contractual and financial mechanisms in incentivising risk undertaking. At the aggregate level, PPP toll roads were implemented to induce the private participation in road operations with the view of gradually fulfilling the objective of cost savings to governments. This effort to entice the private sector has led to consistent erroneous traffic forecasts across projects. Although there have been noticeable advancements in contract design and incentive mechanisms to optimise the allocation of risks to the public and private sectors, PPP toll roads have yet to deliver optimal results. PPPs present a unique compounded agency problem. They have enabled governments to escape from public accountability and diluted the imperative of public interest consideration. The under-investigated public perception of PPP toll roads offers a scope for future research.
The assignment of property rights to incentivise risk-sharing in a principal-agent relationship i... more The assignment of property rights to incentivise risk-sharing in a principal-agent relationship is a recurrent theme of contract theory. This paper examines the incentive effects of property rights in a principal-agent relationship involving government as the principal, that is, the ownership concession model of public-private- partnership (PPP) procurement contracts for toll roads. Specifically, the paper investigates the effects of property rights on the agentrs preference for contract structure to manage risks and to exert performance effort; and the effects on both partiesr risk preferences when ownership transfer is being perceived as transferring accountability. Analysis of data collected through an online experiment surveying stakeholders who have been engaging in road contracts procured under the PPP model in 32 countries concludes that: (1) property rights offer the agent a protective shield against poor planning by the principal in the meantime gives rise to ex ante opportunism; (2) the agentrs reservation on ex post decision rights distorts allocative efficiency; and (3) revenue-sharing is a powerful incentive for non-revenue-enhancing performance effort. Further investigation attests that incentive effects of property rights can be enhanced through equitable allocation of risks; nevertheless, ex post efficiency is debilitated by considerations of political sensitivity concerning toll pricing.
Financial Accountability & Management, 2016
This study examines the unique issues, challenges and risks emerging at the end of a public-priva... more This study examines the unique issues, challenges and risks emerging at the end of a public-private partnership (PPP) concession. The M4 motorway is the first Australian PPP that has reached the end of its concession. The absence of formal guidance on contractual closure created challenges for the partners in interpreting contract ambiguities, and in reaching agreement on the processes needed to close the contract. These challenges had posed several relational risks, the mitigations of which were supported by the relational contract partners developed over the concession term, and their reciprocity and ethical motivations. The reintegration risk emerged in the handback exemplifies the limits of controls designed for legitimacy concerns to resolve coordination problems. The political settlement for value for money was gestured by lifting the toll after the concession ended. In providing unparalleled empirical evidence to against the long-term ‘myths’ of PPPs, the study counters the criticism over PPPs’ impossibilities to handle uncertainties and to transfer risk.
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy. The unsettled question is to what degree such strategy will continue to play handmaiden to more provincial concerns or whether this essential influence will to some degree be rev...
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas Investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy. The unsettled question is to what degree such strategy will continue to play handmaiden to more provincial concerns or whether this essential influence will to some degree be reversed.24 page(s
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese Direct Foreign Investment appears to have greatly redefined itself over the post-war era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy.
International Journal of Business and Globalisation, 2010
One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The... more One aspect of globalisation has been the changing pattern of foreign investment in East Asia. The evolving pattern reflects both the objectives of potential investors and the constraints imposed by the host governments. Future trends should be heavily influenced by Japanese decisions since Japan will continue to maintain one of the largest economies in the region. Japanese direct foreign investment appears to have greatly redefined itself over the postwar era. However, our analysis demonstrates that the pattern of Japanese overseas investment has been a dependable reflection of its domestic economy as constrained by the political imperatives of the day. The fundamental changes now occurring within the Japanese economy will most likely herald a corresponding departure in the nature of its investment policy.
This paper offers a systematic overview on the proliferation of tollroads delivered under the pub... more This paper offers a systematic overview on the proliferation of tollroads delivered under the public private partnerships structure in the Australian state of New South Wales. In particular, the study proposes to disentangle the intricate web of contractual relationships to understand the underlying objectives of different types of PPP tollroads and to evaluate the effectiveness of the contractual and financial mechanisms for encouraging risk undertaking. (a) For the covering entry of this conference, please see ITRD abstract no. E217541.
Handbook on Transport and Urban Planning in the Developed World, 2000
Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as... more Australian governments are amongst the leading advocates of Public Private Partnerships (PPPs) as a public procurement policy. After two decades of experience, it is timely to evaluate the effectiveness of the policy. At the aggregate level, PPPs were launched to induce private participation in public infrastructures to covertly contrive the removal of visible public debt. Drawing from the social dynamic framework of interests (Broadbent & Laughlin, 2002), this paper shows that PPPs are a powerful procurement device to legitimise the social existence of the state. This article explores the experience of the first hospital (the Port Macquarie Base Hospital) and a recent toll road (the Cross City Tunnel) delivered under the Public Private Partnerships (PPPs) model in the State of New South Wales, Australia. The study shows that the policy has effectively established the market of PPPs in a variety of sectors. Lessons to be learnt from this paper include the need for policy makers to b...