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Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works

Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of... This paper examines the effect of improved transparency in the bidder qualification process, using the experience gained from a case study of municipal public works auctions. A difference-in-differences analysis reveals that improved transparency reduces procurement cost by up to 8%. This finding is robust with regard to the concerns of both endogeneity and sample selectivity. The bidding-function estimates, combined with features of Japanese procurement system, imply that the introduction of transparent practices is insufficient to bring about efficiency in public procurement. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works

Review of Industrial Organization , Volume 34 (3) – Jun 17, 2009

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References (25)

Publisher
Springer Journals
Copyright
Copyright © 2009 by Springer Science+Business Media, LLC.
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
DOI
10.1007/s11151-009-9208-1
Publisher site
See Article on Publisher Site

Abstract

This paper examines the effect of improved transparency in the bidder qualification process, using the experience gained from a case study of municipal public works auctions. A difference-in-differences analysis reveals that improved transparency reduces procurement cost by up to 8%. This finding is robust with regard to the concerns of both endogeneity and sample selectivity. The bidding-function estimates, combined with features of Japanese procurement system, imply that the introduction of transparent practices is insufficient to bring about efficiency in public procurement.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Jun 17, 2009

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