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Bureaucratic Competence and Procurement Outcomes
[“Politics and Economics in Weak and Strong States]

Author

Listed:
  • Francesco Decarolis
  • Leonardo M Giuffrida
  • Elisabetta Iossa
  • Vincenzo Mollisi
  • Giancarlo Spagnolo

Abstract

To what extent does a more competent public bureaucracy contribute to better economic outcomes? We address this question in the context of the US federal procurement of services and works, by combining contract-level data on procurement performance and bureau-level data on competence and workforce characteristics. We use the death occurrences of specific types of employees as instruments and find that an increase in bureau competence causes a significant and economically important reduction in (a) time delays, (b) cost overruns, and (c) number of renegotiations. Cooperation within the office appears to be a key driver of the findings. (JEL D73, H11, H57, L26).

Suggested Citation

  • Francesco Decarolis & Leonardo M Giuffrida & Elisabetta Iossa & Vincenzo Mollisi & Giancarlo Spagnolo, 2020. "Bureaucratic Competence and Procurement Outcomes [“Politics and Economics in Weak and Strong States]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 36(3), pages 537-597.
    • Handle: RePEc:oup:jleorg:v:36:y:2020:i:3:p:537-597.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewaa004
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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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