nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒03‒15
five papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. What factors predict how public sector projects perform ? a review of the World Bank's public sector management portfolio By Blum, Jurgen Rene
  2. Maturity Rationing and Collective Short-Termism By Konstantin Milbradt; Martin Oehmke
  3. National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes By Huergo, Elena; Moreno, Lourdes
  4. Optimal Return in a Model of Bank Small-business Financing By Peia, Oana; Vranceanu , Radu
  5. The impact of early childhood education on early achievement gaps : evidence from the Indonesia early childhood education and development (ECED) project By Jung, Haeil; Hasan, Amer

  1. By: Blum, Jurgen Rene
    Abstract: This paper uses regression analysis to identify which country context, reform content, process, and project management variables predict the performance of public sector management projects, as measured by the Independent Evaluation Group's project outcome ratings. The paper draws on data from a large sample of World Bank public sector management projects that were approved between 1990 and 2013. It contributes to an emerging literature that uses cross-country regressions to analyze public sector management reform patterns. The findings suggest that political context factors have a greater impact on the performance of public sector management projects than on other projects. Specifically, public sector management projects perform better in countries with democratic regimes than autocratic ones. They fare better in the presence of programmatic political parties and in more aid-dependent countries. Project managers'subjective risk assessments predict performance in public sector management operations better than objective risk indicators. These findings suggest that the performance of public sector management projects would benefit from a better alignment of project design with political context and from a more open dialogue about risk between task team leaders and management.
    Keywords: Banks&Banking Reform,Public Sector Management and Reform,Housing&Human Habitats,Poverty Monitoring&Analysis,Development Economics&Aid Effectiveness
    Date: 2014–03–01
  2. By: Konstantin Milbradt; Martin Oehmke
    Abstract: Financing terms and investment decisions are jointly determined. This interdependence links firms’ asset and liability sides and can lead to short-termism in investment. In our model, financing frictions increase with the investment horizon, such that financing for long-term projects is relatively expensive and potentially rationed. In response, firms whose first-best investment opportunities are long-term may change their investments towards second-best projects of shorter maturities. This worsens financing terms for firms with shorter maturity projects, inducing them to change their investments as well. In equilibrium, investment is inefficiently short-term. Equilibrium asset-side adjustments by firms can amplify shocks and, while privately optimal, can be socially undesirable.
    JEL: G11 G30 G31 G32
    Date: 2014–02
  3. By: Huergo, Elena; Moreno, Lourdes
    Abstract: The objective of this study is to compare the effect of different types of public support for R&D projects on firms’ technological capabilities. We distinguish be-tween low-interest loans and subsidies and between national and European sup-port. Using data on 2,319 Spanish firms during the period 2002-2005, we estimate a multivariate probit to analyse the determinants of firms’ participation in public R&D programmes and, later, the impact of this participation on firms’ technologi-cal capabilities using different indicators. The results provide evidence of the ef-fectiveness of all treatments for improving firms’ innovative performance. Specif-ically, although the three kinds of public aid stimulate the intensity of R&D in-vestment, the highest impact corresponds to soft credits. In addition, national sub-sidies have a higher impact on internal R&D intensity than EU grants, but the op-posite relation is found as regards total R&D intensity. With respect to innovation outputs, apart from the indirect effect of public support by stimulating R&D in-tensity, we also find evidence of a direct effect of participation in the CDTI credit system and in the European subsidy programme on the probability of obtaining product innovations and applying for patents.
    Keywords: Soft loans, R&D subsidies, impact assessment
    JEL: H81 L2 L52 O3
    Date: 2014–03–07
  4. By: Peia, Oana (ESSEC Business School); Vranceanu , Radu (ESSEC Business School)
    Abstract: This paper develops a simple model showing how banks can increase the access to finance of small, risky firms by mitigating coordination problems among investors. If investors observe a biased signal about the true implementation cost of real sector projects, the model can be solved for a switching equilibrium in the classical global games approach. We show that the socially optimal interest rate that maximizes the probability of success of the firm is higher than the risk-free rate. Yet if banks maximize investors' expected return, they would choose an interest higher than the socially optimal one. This gives rise to a form of credit rationing, which stems from the funding constraints of the banks.
    Keywords: Bank finance; Small business; Global games; Switching equilibrium; Optimal return rium; Optimal return
    JEL: C72 D82 G21 G32
    Date: 2014–02
  5. By: Jung, Haeil; Hasan, Amer
    Abstract: This paper assesses whether the Indonesia Early Childhood Education and Development project had an impact on early achievement gaps as measured by an array of child development outcomes and enrollment. The analysis is based on longitudinal data collected in 2009 and 2010 on approximately 3,000 four-year-old children residing in 310 villages located in nine districts across Indonesia. The study begins by documenting the intent-to-treat impact of the project. It then compares the achievement gaps between richer and poorer children living in project villages with those of richer and poorer children living in non-project villages. There is clear evidence that in project villages, the achievement gap between richer and poorer children decreased on many dimensions. By contrast, in non-project villages, this gap either increased or stayed constant. Given Indonesia's interest in increasing access to early childhood services for all children, and the need to ensure more efficient spending on education, the paper discusses how three existing policies and programs could be leveraged to ensure that Indonesia's vision for holistic, integrated early childhood services becomes a reality. The lessons from Indonesia's experience apply more broadly to countries seeking to reduce early achievement gaps and expand access to pre-primary education.
    Keywords: Primary Education,Educational Sciences,Youth and Governance,Street Children,Housing&Human Habitats
    Date: 2014–02–01

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