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Crime and public procurement, evidence from municipalities

Giuseppe Albanese (), Federico Antellini Russo () and Roberto Zampino ()
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Federico Antellini Russo: Luiss �Guido Carli�
Roberto Zampino: Consip

No 294, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The paper analyzes the link between the centralized purchasing of goods and services by municipalities and the context in which these administrations operate. While taking into account a number of factors that can lead to a greater or lesser use of Consip, the work focuses on the link between that choice and the local crime rate. The empirical analysis shows that, in low-crime areas only, an increase in crime is positively correlated with the frequency with which municipalities entrust vendor selection to a third party in order to attempt to limit the risk of inefficiency (passive waste) that would otherwise arise. The relationship is the inverse in high-crime areas, suggesting a growing willingness by municipalities to maintain autonomous control over purchasing, which may be linked to the possibility of extracting some of the rents produced from this activity (active waste).

Keywords: crime; fraud and corruption; efficiency; public procurement; local finance (search for similar items in EconPapers)
JEL-codes: D73 E24 H57 H72 H83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2015-09
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