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-Making 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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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
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