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The performance of local government in the execution of public works

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  • Guccio, Calogero
  • Pignataro, Giacomo
  • Rizzo, Ilde

Abstract

This paper aims at analysing the procurement of public works paying attention to the level of government involved. Such an issue has not received so far attention in the literature on fiscal federalism nor in the public works procurement literature. We focus the attention upon the execution stage of public works: indeed, their efficient provision and their capability to deliver the planned benefits are severely affected by the problems arising at the execution stage because of the incompleteness of the underlying contract. The main result is that local governments seem to be less efficient in the management of the execution process, suffering from longer delays than central government. This phenomenon is more severe for small municipalities and when the contract is mainly financed with external resources.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16094.

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Date of creation: Jun 2009
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Handle: RePEc:pra:mprapa:16094

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Keywords: public procurement; local government; soft budget;

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  1. Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall.
  2. Bird, Richard, 1994. "Decentralizing infrastructure : for good or ill?," Policy Research Working Paper Series 1258, The World Bank.
  3. Iwan Barankay & Ben Lockwood, 2005. "Decentralization and the Productive Efficiency of Government: Evidence from Swiss Cantons," Economics Discussion Papers 597, University of Essex, Department of Economics.
  4. Pranab Bardhan & Dilip Mookherjee, 2006. "Decentralisation and Accountability in Infrastructure Delivery in Developing Countries," Economic Journal, Royal Economic Society, vol. 116(508), pages 101-127, 01.
  5. Besley, Timothy & Coate, Stephen, 2003. "Centralized versus decentralized provision of local public goods: a political economy approach," Journal of Public Economics, Elsevier, vol. 87(12), pages 2611-2637, December.
  6. Estache, Antonio & Fay, Marianne, 2007. "Current debates on infrastructure policy," Policy Research Working Paper Series 4410, The World Bank.
  7. Wildasin, David E., 2004. "The Institutions of Federalism: Toward an Analytical Framework," National Tax Journal, National Tax Association, vol. 57(2), pages 247-72, June.
  8. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
  9. Mariano Tommasi & Federico Weinschelbaum, 2007. "Centralization vs. Decentralization: A Principal-Agent Analysis," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 369-389, 04.
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Cited by:
  1. Chiara D’Alpaos & Michele Moretto & Paola Valbonesi & Sergio Vergalli, 2013. "Time overruns as opportunistic behavior in public procurement," Journal of Economics, Springer, vol. 110(1), pages 25-43, September.

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