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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Date of revision:
Contact details of provider:
Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
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, 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
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrick Bajari & Lixin Ye, 2003.
"Deciding Between Competition and Collusion,"
The Review of Economics and Statistics,
MIT Press, vol. 85(4), pages 971-989, November.
- Patrick Bajari & Lixin Ye, 2001. "Deciding Between Competition and Collusion," Working Papers, Stanford University, Department of Economics 01008, Stanford University, Department of Economics.
- Evenett, Simon J & Hoekman, Bernard, 2004.
"International Cooperation and the Reform of Public Procurement Policies,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
4663, C.E.P.R. Discussion Papers.
- Evenett, Simon J. & Hoekman, Bernard M., 2005. "International cooperation and the reform of public procurement policies," Policy Research Working Paper Series 3720, The World Bank.
- O. Compte & A. Lambert-Mogiliansky & T. Verdier, 2005. "Corruption and Competition in Procurement Auctions," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 1-15, Spring.
- Porter, Robert H & Zona, J Douglas, 1993.
"Detection of Bid Rigging in Procurement Auctions,"
Journal of Political Economy, University of Chicago Press,
University of Chicago Press, vol. 101(3), pages 518-38, June.
- Nakabayashi, Jun, 2013.
"Small business set-asides in procurement auctions: An empirical analysis,"
Journal of Public Economics,
Elsevier, vol. 100(C), pages 28-44.
- Jun Nakabayashi, 2009. "Small Business Set-asides in Procurement Auctions: An Empirical Analysis," Tsukuba Economics Working Papers, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba 2009-005, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba, revised Nov 2009.
- Jun Nakabayashi, 2010. "Small Business Set-asides in Procurement Auctions: An Empirical Analysis," Global COE Hi-Stat Discussion Paper Series gd09-126, Institute of Economic Research, Hitotsubashi University.
- Robert H. Porter & J. Douglas Zona, 1999.
"Ohio School Milk Markets: An Analysis of Bidding,"
RAND Journal of Economics,
The RAND Corporation, vol. 30(2), pages 263-288, Summer.
- Pesendorfer, Martin, 2000. "A Study of Collusion in First-Price Auctions," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 67(3), pages 381-411, July.
- Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
- Dakshina G. De Silva & Timothy Dunne & Georgia Kosmopoulou, 2003. "An Empirical Analysis of Entrant and Incumbent Bidding in Road Construction Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 295-316, 09.
- Federico Trionfetti, 2000. "Discriminatory Public Procurement and International Trade," The World Economy, Wiley Blackwell, vol. 23(1), pages 57-76, 01.
- John McMillan, 1991. "Dango: Japan'S Price-Fixing Conspiracies," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 3(3), pages 201-218, November.
- Yoshiro Miwa & J. Mark Ramseyer, 2004. "Toward a Theory of Jurisdictional Competition: The Case of the Japanese FTC," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-290, CIRJE, Faculty of Economics, University of Tokyo.
- De Silva, Dakshina G. & Dunne, Timothy & Kankanamge, Anuruddha & Kosmopoulou, Georgia, 2008.
"The impact of public information on bidding in highway procurement auctions,"
European Economic Review,
Elsevier, vol. 52(1), pages 150-181, January.
- Dakshina De Silva & Timothy Dunne & Anuruddha Kankanamge & Georgia Kosmopoulou, 2005. "The Impact of Public Information on Bidding in Highway Procurement Auctions," Microeconomics, EconWPA 0511011, EconWPA.
- Atsushi Iimi, 2006. "Auction Reforms for Effective Official Development Assistance," Review of Industrial Organization, Springer, Springer, vol. 28(2), pages 109-128, 03.
- Andrey Yakovlev & Andrey Tkachenko & Olga Demidova & Olga Balaeva, 2013. "An impact of different regulatory regimes on the effectiveness of public procurement," HSE Working papers, National Research University Higher School of Economics WP BRP 08/PA/2013, National Research University Higher School of Economics.
- Eiji Yamamura & Haruo Kondoh, 2012.
"Government transparency and expenditure in the rent-seeking industry: The case of Japan for 1998â€“2004,"
EERI Research Paper Series
EERI_RP_2012_13, Economics and Econometrics Research Institute (EERI), Brussels.
- Eiji Yamamura & Haruo Kondoh, 2013. "Government Transparency And Expenditure In The Rent-Seeking Industry: The Case Of Japan For 1998â€“2004," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 635-647, 07.
- Yamamura, Eiji & Kondoh, Haruo, 2011. "Government transparency and expenditure in the rent-seeking industry: the case of Japan for 1998-2004," MPRA Paper 29689, University Library of Munich, Germany.
- Iimi, Atsushi, 2013. "Multidimensional auctions for public energy efficiency projects : evidence from the Japanese ESCO market," Policy Research Working Paper Series 6485, The World Bank.
- Estache, Antonio & Iimi, Atsushi, 2009.
"(UN)Bundling infrastructure procurement : evidence from water supply and sewage projects,"
Policy Research Working Paper Series
4854, The World Bank.
- Estache, Antonio & Iimi, Atsushi, 2011. "(Un)bundling infrastructure procurement: Evidence from water supply and sewage projects," Utilities Policy, Elsevier, Elsevier, vol. 19(2), pages 104-114, June.
- Antonio Estache & A. Iimi, 2009. "(Un)Bundling Infrastructure Procurement: Evidence from Water Supply and Sewage Projects," Working Papers ECARES, ULB -- Universite Libre de Bruxelles 2009_007, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & Atsushi A. Iimi, 2011. "(Un)bundling infrastructure procurement: Evidence from water supply and sewage projects," ULB Institutional Repository 2013/169498, ULB -- Universite Libre de Bruxelles.
- Atsushi Iimi, 2013. "Testing Low-Balling Strategy in Rural Road Procurement," Review of Industrial Organization, Springer, Springer, vol. 43(3), pages 243-261, November.
- In Lee, 1999. "Non-cooperative Tacit Collusion, Complementary Bidding and Incumbency Premium," Review of Industrial Organization, Springer, Springer, vol. 15(2), pages 115-134, September.
- Balsevich, A. & Pivovarova, S. & Podkolzina, E., 2012. "The Role of Information Transparency in Public Procurement: the Example of Russian Regions," Journal of the New Economic Association, New Economic Association, New Economic Association, vol. 15(3), pages 82-112.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.