Does Institutional Quality Matter for Infrastructure Provision? A Non-parametric Analysis for Italian Municipalities

Marina Cavalieri, Calogero Guccio (), Domenico Lisi and Ilde Rizzo

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2020, vol. 6, issue 3, No 6, 562 pages

Abstract: Abstract This study explores the relationship between different dimensions of regional institutional quality and the efficient provision of transport infrastructure. A two-stage semi-parametric approach is applied to a large sample of public works procured by about 1700 Italian municipalities in the 2000–2014 period. First, we estimate the performance in contract execution; then, we test the impact of different measures and dimensions of institutional quality at both regional and provincial level. The results provide evidence that the quality of institutional environment matters in infrastructure procurement, though some specific dimensions of institutional quality appear to be more relevant than others in affecting performance in contract execution. Overall, the estimates are robust to alternative measures of institutional quality, alternative model specifications, and different sample selections.

Keywords: Efficiency; Non-parametric methods; Semi-parametric truncated regression; Municipalities; Institutional quality; Public works contracts (search for similar items in EconPapers)
JEL-codes: C14 D73 H57 O18 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s40797-019-00111-1

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