Theory of Public Choice, Theory of Social Choice and Public-Private Partnership in a Heterodox Approach

Abstract

The subject of this article is the interpretation of the definition of heterodox approach to public-private partnerships (PPPs) in public choice theory and in the theory of social choice. This is the part of the author’s broader research, aimed at identifying the potential convergence of selected elements from public finance theories and Islamic finance theories. PPP agreement falls into the main assumptions of both the theory of public choice and the theory of social choice. This may, therefore, provide opportunities for the transfer of selected public finances and Islamic finance to PPP investments, with the participation of international investors from different legal, economic and religious backgrounds. By creating a heterodox approach to PPPs, it is possible to achieve consistency between the main objectives of private-sector conventional investors: maximizing profitability, and the goals of Islamic investors: maximizing social well-being and profitability and the objectives of public entities: public service delivery. The article is theoretical, the basic research method was the literature studies.