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Favouritism and Inefficiency in Procurement: Evidence from Public Works in Italy

Francesco Decarolis and Cristina Giorgiantonio

Rivista di Politica Economica, 2013, issue 2, 161-189

Abstract: This paper shows how favoritism in public procurement can emerge despite the use of rigid procedures for awarding contracts and of transparent criteria for allowing firms to bid. The paper analyzes data on the awarding of public works in Italy to illustrate how differences in fine regulation details across Italian local administrations have major implications in terms of favoritism toward local contractors and the overall efficiency of the procurement process. The findings are a cautionary tale about the benefits and risks of a decentralized procurement regulation and a warning about the problems facing green and innovation procurement.

Keywords: infrastructure; auctions; regulation. (search for similar items in EconPapers)
JEL-codes: K23 L51 L90 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:y:2013:i:2:p:161-189

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