nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2019‒06‒17
four papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Interest Rates and Investment Under Competitive Screening and Moral Hazard By Anastasios Dosis
  2. The Cost of New York City’s Hudson Yards Redevelopment Project By : Bridget Fisher; Flávia Leite
  3. Measuring digital security risk management practices in businesses By OECD
  4. Company’s Business Models and NGOs: Inputs from the Partnerships Portfolio By Raphaël Maucuer; Alexandre Renaud

  1. By: Anastasios Dosis (ESSEC Business School - Essec Business School)
    Abstract: This paper studies the effect of (market) interest rate changes on investment under competitive screening and moral hazard. Lower (higher) rates ease (hinder) the provision of incentives to entrepreneurs with positive NPV projects to invest in their best project but hinder (ease) banks' efforts to distinguish them from entrepreneurs with negative NPV projects. This might result in a hump-shaped investment curve. Under low rates, screening through limit pricing leaves insufficient profits to low-wealth entrepreneurs to invest in their best project, and consequently, several project qualities might co-exist in equilibrium. Several testable and other implications on the effectiveness of unconventional monetary policy to boost investment are discussed.
    Keywords: Interest rates,entrepreneurial wealth,investment,competitive screening,moral hazard
    Date: 2019–02–16
  2. By: : Bridget Fisher; Flávia Leite (Schwartz Center for Economic Policy Analysis (SCEPA))
    Abstract: Tax increment financing (TIF) has exploded in popularity on the municipal finance landscape as cities compete for scarce public resources to fund economic development. Previous studies evaluate TIF’s efficacy and ability to spark economic growth. This research expands the evaluation of TIF by questioning the widespread understanding of TIF as a “self-financing” tool through an analysis of its risks and costs to taxpayers. We present a case study of the Hudson Yards redevelopment project in New York City, the country’s largest TIF-type project. Our analysis reveals a project that, rather than being “self-financing,” cost the city $2.2 billion, largely due to tax breaks to incentivize development and standard development risks and costs. We conclude that positioning TIF and its variants as “self-financing” is incomplete and that analyzing costs and risks associated with TIF and TIF-variant projects is necessary to provide a robust cost-benefit analysis to those municipalities considering its implementation.
    Keywords: TIF, Hudson Yards, Municipal Fiscal Health, Costs and risks
    JEL: H30 E21 H2
    Date: 2018–11
  3. By: OECD
    Abstract: This report synthesises an OECD project to develop a framework and a set of statistical indicators that can be used to assess the digital security (cybersecurity) risk management practices of businesses. A survey instrument aligned with the framework was developed and piloted. After a general introduction, the report starts with a brief overview of the state of affairs in the measurement of digital security risk and its management prior to the OECD project. It provides an in-depth explanation of the measurement framework for the assessment of digital security risk management practices in businesses and an analysis of the outcomes of a pilot survey instrument based on the measurement framework, tested with members of the Federation of European Risk Management Associations (FERMA) in 2018. The conclusion of the report provides recommendations for future efforts that build on this project.
    Date: 2019–06–21
  4. By: Raphaël Maucuer (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers - ESSCA); Alexandre Renaud (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)
    Abstract: Les grandes entreprises sont soumises à des enjeux sociétaux qui menacent leur développement. Pour assurer leur pérennité, certaines décident de développer des partenariats diversifiés avec des organisations non-gouvernementales (ONG). A partir d'une étude de cas approfondie, nous identifions différents types de contributions des partenariats ONG-entreprise à la stratégie d'une multinationale. Au niveau corporatif, ils participent au pilotage des activités stratégiques de l'entreprise, et au niveau business, ils contribuent de façon complémentaire au déploiement des différents modèles d'affaires. Ces résultats permettent de repenser la contribution des ONG à la stratégie de l'entreprise à travers le concept de portefeuille de partenariats ONG-entreprise. Abstract: Large companies have to deal with societal challenges that threaten their development. To survive, some decide to develop diversified partnerships with non-governmental organizations (NGOs). Drawing on an in-depth case study, we identify different types of contributions of business-NGO partnerships to a multinational's strategy. At the corporate level, they participate in the management of the company's strategic activities, and at the business level, they contribute in a complementary way to the implementation of the various business models. These results open a renewed reflection on the contribution of NGOs to the company's strategy through the concept of business-NGO partnerships portfolio.
    Keywords: Stratégie,modèles d'affaires,organisations non-gouvernementales (ONG),partenariats,portefeuille Keywords: Strategy,business models,non-governmental organizations (NGOs),partnerships,portfolio
    Date: 2019–05–13

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