Bureaucratic competence and procurement outcomes


Decarolis, Francesco ; Giuffrida, Leonardo M. ; Iossa, Elisabetta ; Mollisi, Vincenzo ; Spagnolo, Giancarlo


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URL: https://madoc.bib.uni-mannheim.de/54482
URN: urn:nbn:de:bsz:180-madoc-544821
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: ZEW Discussion Papers
Volume: 19-057
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D44 , H11 , H57,
Keywords (English): Buyer quality , competence , procurement , public management , state capacity
Abstract: To what extent does a more competent public bureaucracy contribute to better economic outcomes? We address this question in the context of the US federal procurement of services and works, by combining contract-level data on procurement performance and bureau-level data on competence and workforce characteristics. We use the death occurrences of specific types of employees as instruments and find that an increase in bureau competence causes a significant and economically important reduction in: i) time delays, ii) cost overruns, and iii) number of renegotiations. Cooperation within the office appears to be a key driver of the findings.




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