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Project Citation: 

Bosio, Erica, Djankov, Simeon, Glaeser, Edward, and Shleifer, Andrei. Data and Code for: Public Procurement in Law and Practice. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-06-12. https://doi.org/10.3886/E153181V1

Project Description

Summary:  View help for Summary We examine a new dataset of public procurement laws, practice, and outcomes in 187 countries.  We measure regulation as restrictions on the discretion of the procuring entities.  We find that laws and practice are highly correlated with each other across countries, and better practice are correlated with better outcomes, but laws themselves are not correlated with outcomes.  A closer look shows that stricter laws correlate with improved outcomes, but only in countries with low public sector capacity.  We present a model of procurement in which both regulatory rules and public sector capacity determine procurement outcomes.  In the model, regulation is effective in countries with low public sector capacity, but not in countries with high capacity because it inhibits the socially optimal exercise of discretion to exclude low quality bidders.

Scope of Project

JEL Classification:  View help for JEL Classification
      D73 Bureaucracy; Administrative Processes in Public Organizations; Corruption
      H11 Structure, Scope, and Performance of Government
      H57 National Government Expenditures and Related Policies: Procurement
      K42 Illegal Behavior and the Enforcement of Law


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