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 InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-548.
Length: 32 pages
Date of creation: Mar 2008
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Other versions of this item:
- Hiroshi Ohashi, 2009. "Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works," Review of Industrial Organization, Springer, vol. 34(3), pages 267-285, May.
- 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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