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Bureaucratic competence and procurement outcomes

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  • Decarolis, Francesco
  • Giuffrida, Leonardo
  • Iossa, Elisabetta
  • Mollisi, Vincenzo
  • Spagnolo, Giancarlo

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: i) time delays, ii) cost overruns, and iii) number of renegotiations. Cooperation within the office appears to be a key driver of the findings.

Suggested Citation

  • Decarolis, Francesco & Giuffrida, Leonardo & Iossa, Elisabetta & Mollisi, Vincenzo & Spagnolo, Giancarlo, 2019. "Bureaucratic competence and procurement outcomes," ZEW Discussion Papers 19-057, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:19057
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    More about this item

    Keywords

    buyer quality; competence; procurement; public management; state capacity;
    All these keywords.

    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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