Election cycles in European public procurement

Havlik, Annika ; Heinemann, Friedrich ; Nover, Justus

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URL: https://madoc.bib.uni-mannheim.de/61096
URN: urn:nbn:de:bsz:180-madoc-610968
Document Type: Working paper
Year of publication: 2021
The title of a journal, publication series: ZEW Discussion Papers
Volume: 21-079
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Business School > ABWL insbes. Finance & Accounting (Voget)
Außerfakultäre Einrichtungen > Graduate School of Economic and Social Sciences - CDSE (Economics)
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D72 , D73 , H57,
Keywords (English): forward-looking voters , political budget cycles , retrospective voting , Tenders Electronic Daily (TED)
Abstract: This paper studies the existence of election cycles in public procurement in the European Union for the national level. We analyze different steps along the procurement process, namely the publication of the contract notice, the awarding of the contract, and the project completion. We point out how these steps should differ in their potential to address specific types of voters. We argue that the award provides politicians with a particularly appealing opportunity. It allows them to please the award-winning firms’ stakeholders and the spending decision becomes binding and credible also from the perspective of forward-looking voters. We find robust evidence for electioneering in contract notices and awards prior to national parliamentary elections. The effect in contract awards is particularly strong for certain sub-categories like education and is more pronounced for visible projects.

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