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Firms’ legality and efficiency: evidence from public procurement

Author

Listed:
  • Elisabetta Iossa

    (Autorità Garante della Concorrenza e del Mercato
    University of Rome Tor Vergata)

  • Chiara Latour

    (University of Stockholm)

Abstract

Do firms with higher legality standards contribute to better procurement outcomes? We address this question in the context of Italian public works procurement, by combining contract-level data on procurement and firm-level data on legality scores, using the Legality Rating System managed by the Italian Antitrust Authority. We find that higher legality scores are positively associated with a significant and economically important improvement in procurement efficiency, measured by shorter time delays and lower extra costs.

Suggested Citation

  • Elisabetta Iossa & Chiara Latour, 2025. "Firms’ legality and efficiency: evidence from public procurement," European Journal of Law and Economics, Springer, vol. 59(3), pages 439-455, June.
    • Handle: RePEc:kap:ejlwec:v:59:y:2025:i:3:d:10.1007_s10657-025-09848-w
    DOI: 10.1007/s10657-025-09848-w
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    References listed on IDEAS

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