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The effects of digitalization on the functioning of the public sector: Evidence from e-procurement

Author

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  • Mocetti, Sauro
  • Frigo, Annalisa

Abstract

The paper examines the effects of the introduction of e-procurement on the functioning of the public procurement system, with reference to procedures with a higher administrative content. Using a difference-in-difference approach, it compares procurement outcomes of local authorities that were required to adopt e-procurement at the beginning of 2024 with those of entities that had already implemented such digital tools. The results show that e-procurement has increased transparency and reduced the duration of administrative procedures. The availability of information on awards increased by 4 to 7 percentage points, with the effect entirely driven by direct awards and particularly pronounced in ex ante more opaque local authorities. The length of the awarding phase also declined significantly, with sizable reductions observed for competitive procedures, where screening and verification requirements are more extensive. Reductions in procedural duration are also larger in municipalities with more qualified personnel, consistent with complementarities between human capital and the effective use of digital procurement platforms.

Suggested Citation

  • Mocetti, Sauro & Frigo, Annalisa, 2026. "The effects of digitalization on the functioning of the public sector: Evidence from e-procurement," Journal of Economic Behavior & Organization, Elsevier, vol. 246(C).
    • Handle: RePEc:eee:jeborg:v:246:y:2026:i:c:s0167268126001733
    DOI: 10.1016/j.jebo.2026.107587
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    Keywords

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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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