Application of Asset Pricing Model in the determination of Public-Private Partnership


  • Rujaib Naseem Meer IQRA UNIVERSITY



Public-Private Partnership (PPP), Capital Asset Pricing Model-CAPM, Monetary Policy, Viability Gap


The study is to gain a better understanding of how the asset pricing model interacts with Public Private Partnership (PPP) in the larger domain of monetary policy. We employ monetary policy components that include a Panel least square test, and we apply it to the panel data set that contains 131 countries and 15 years of data on investment in the energy sector. According to the findings, the Policy rate is a critical factor in determining the minimum annual required rate of return that an investor earns on their investment.  The viability gap refers to the difference between the actual return on investment from a public-private partnership project and the required rate of return of investors that is calculated by using the capital asset pricing model. This study benefits governments, private firms, and ultimately the public of a country. The paper shows how monetary policy can use to fill the issue of viability gaps in the case of public-private partnership investment projects.


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How to Cite

Meer, R. N. (2023). Application of Asset Pricing Model in the determination of Public-Private Partnership . Review of Applied Management and Social Sciences, 6(2), 131-148.