Audit risk and rent extraction: Evidence from a randomized evaluation in Brazil
AbstractWe report results from a randomized policy experiment designed to test whether increased audit risk deters rent extraction in local public procurement and service delivery in Brazil. Our estimates suggest that temporarily increasing annual audit risk by about 20 percentage points reduced the proportion of irregular local procurement processes by about 17 percentage points. This reduction was driven entirely by irregularities involving mismanagement or corruption. In contrast, we find no evidence that increased audit risk affected the quality of publicly provided preventive and primary health care services -measured based on user satisfaction surveys- or compliance with national regulations of the conditional cash transfer program "Bolsa Família".
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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1270.
Date of creation: Apr 2011
Date of revision: Jun 2013
Contact details of provider:
Web page: http://www.econ.upf.edu/
Corruption; Rents; Local Governments; Law Enforcement;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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- Claudio Ferraz & Frederico Finan, 2009.
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NBER Working Papers
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- Stephan Litschig & Yves Zamboni, 2008. "Judicial presence and rent extraction," Economics Working Papers 1143, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2012.
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CEIS Research Paper
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- How to reduce public procurement waste
by Economic Logician in Economic Logic on 2012-09-05 14:49:00
- Random audits to reduce misappropriation of public resources
by Economic Logician in Economic Logic on 2012-09-06 14:22:00
- Karthik Muralidharan & Jishnu Das & Alaka Holla & Aakash Mohpal, 2014. "The Fiscal Cost of Weak Governance: Evidence from Teacher Absence in India," NBER Working Papers 20299, National Bureau of Economic Research, Inc.
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