A Comparison of Techniques to Evaluate Policies in Public Procurement

David Sundström ()
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David Sundström: Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S 901 87 Umeå, Sweden, http://www.econ.umu.se

No 928, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: Empirical evaluations of policies implemented through public procurements are commonly carried out using linear regressions or by more involved nonlinear structural models. The aspiration is typically to determine a marginal effect. Here, I compare marginal effects generated under both types of specifications. I study how a political initiative to make firms less environmentally damaging implemented through public procurements influence Swedish firms’ behavior. The collected evidence brings about a statistically as well as economically significant effect on firms’ bids and costs.

Keywords: binding function; green public procurement; indirect inference; orthogonal polynomial regression; simulation estimation; structural estimation (search for similar items in EconPapers)
JEL-codes: C15 C57 D44 H57 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-05-04, Revised 2016-06-17
New Economics Papers: this item is included in nep-cse
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