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Public Sector Corruption and Accountability in Cost Deviations and Overruns of Public Projects

Author

Listed:
  • Francisco Pinheiro Catalão

    (Universidade Europeia)

  • Carlos Oliveira Cruz

    (Universidade de Lisboa)

  • Joaquim Miranda Sarmento

    (ISEG - Lisbon School of Economics and Management, Universidade de Lisboa)

Abstract

There is great public concern on cost deviations and overruns in public projects, particularly regarding the impact of corruption and accountability. To examine this question, we use a data set of over 4,000 public projects from Portugal covering a 25-year period. By using the corruption and accountability index for Portugal, we are able to focus on the potential influence of these dimensions, while controlling for institutional, political, and economic variables. Our research method follows an econometric approach, using the cost deviation and the cost overrun of each project as dependent variables. The implication of this study is that more corruption and less accountability can lead to higher cost deviations and overruns.

Suggested Citation

  • Francisco Pinheiro Catalão & Carlos Oliveira Cruz & Joaquim Miranda Sarmento, 2023. "Public Sector Corruption and Accountability in Cost Deviations and Overruns of Public Projects," Public Organization Review, Springer, vol. 23(3), pages 1105-1126, September.
    • Handle: RePEc:kap:porgrv:v:23:y:2023:i:3:d:10.1007_s11115-022-00616-x
    DOI: 10.1007/s11115-022-00616-x
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    References listed on IDEAS

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    1. 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.
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    3. Francisco Pinheiro Catalão & Carlos Oliveira Cruz & Joaquim Miranda Sarmento, 2019. "Exogenous determinants of cost deviations and overruns in local infrastructure projects," Construction Management and Economics, Taylor & Francis Journals, vol. 37(12), pages 697-711, December.
    4. Ali Farazmand, 2012. "Sound Governance: Engaging Citizens through Collaborative Organizations," Public Organization Review, Springer, vol. 12(3), pages 223-241, September.
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    6. Joaquim Miranda Sarmento, 2018. "Public Finance and National Accounts in the European Context," Financial and Monetary Policy Studies, Springer, number 978-3-030-05174-7, June.
    7. Catalão, Francisco Pinheiro & Cruz, Carlos Oliveira & Sarmento, Joaquim Miranda, 2019. "The determinants of cost deviations and overruns in transport projects, an endogenous models approach," Transport Policy, Elsevier, vol. 74(C), pages 224-238.
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    9. Chantal C. Cantarelli & Bent Flybjerg & Eric J. E. Molin & Bert van Wee, 2013. "Cost overruns in Large-Scale Transportation Infrastructure Projects: Explanations and Their Theoretical Embeddedness," Papers 1307.2176, arXiv.org.
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