Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works
AbstractThis paper examines the e?ect of improved transparency in the bidder quali.cation process, using the experience based on a case study of municipal public work auctions. It reveals that improved transparency reduces procurement cost by a maximum of three percent. This .nding is robust to the concerns of endogeneity, sample selectivity, and distributional assumptions. The bidding-function estimates, combined with features of Japanese procurement system, imply that the improved transparency limits abuse of auctioneer.s discretion, and thus weakens the stability of collusion among bidders.
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 34 (2009)
Issue (Month): 3 (May)
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Web page: http://www.springerlink.com/link.asp?id=100336
Public procurement; Transparency; Discretion; Difference-in-differences; F14; H57; L13;
Other versions of this item:
- Hiroshi Ohashi, 2008. "Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works," CIRJE F-Series CIRJE-F-548, CIRJE, Faculty of Economics, University of Tokyo.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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