Efficiency Analysis of Government Subsidy and Performance Guarantee Policies in Relation to PPP Infrastructure Projects

Table 1

The conditions for the payment of the government subsidy.

External benefit	Liquidity shock	Continuation or liquidation (without subsidy)	Social efficiency	Subsidy	Social loss
		Continuation			-
		Liquidation
		Liquidation			-
		Continuation
		Liquidation			-

Note. The and signs in the “social efficiency” column mean that the outcomes (continuation or liquidation) after the occurrence of the liquidity shock when only the performance guarantee policy is adopted are socially efficient or socially inefficient, respectively. The sign in the “subsidy” column means that the government pays the subsidy to the SPV, while the sign means that the government does not pay the subsidy. The - signs in the “social loss” column mean that there is no social loss.