Decentralization and Public Procurement Performance: New Evidence from Italy
We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public instituti...
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| Published in | Economic inquiry Vol. 58; no. 2; pp. 856 - 880 |
|---|---|
| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Hoboken
Wiley
01.04.2020
Wiley Periodicals, Inc Western Economic Association |
| Subjects | |
| Online Access | Get full text |
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| Abstract | We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public institutions, are involved in procurement and are subject to the same EU regulation. We find that (a) municipalities and utilities, which currently award among the largest shares of contracts, achieve lower rebates than other institutional categories; and (b) decentralization implies lower rebates only when it comes with weak competences of procurement officials. The evidence seems to suggest that a reorganization of the procurement system, both in terms of partial centralization and increased professionalization of procurement officials, would help improve award-stage procurement performance. |
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| AbstractList | We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public institutions, are involved in procurement and are subject to the same EU regulation. We find that (a) municipalities and utilities, which currently award among the largest shares of contracts, achieve lower rebates than other institutional categories; and (b) decentralization implies lower rebates only when it comes with weak competences of procurement officials. The evidence seems to suggest that a reorganization of the procurement system, both in terms of partial centralization and increased professionalization of procurement officials, would help improve award‐stage procurement performance. (JEL H11, H57, H71, H77) We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public institutions, are involved in procurement and are subject to the same EU regulation. We find that (a) municipalities and utilities, which currently award among the largest shares of contracts, achieve lower rebates than other institutional categories; and (b) decentralization implies lower rebates only when it comes with weak competences of procurement officials. The evidence seems to suggest that a reorganization of the procurement system, both in terms of partial centralization and increased professionalization of procurement officials, would help improve award-stage procurement performance. We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public institutions, are involved in procurement and are subject to the same EU regulation. We find that (a) municipalities and utilities, which currently award among the largest shares of contracts, achieve lower rebates than other institutional categories; and (b) decentralization implies lower rebates only when it comes with weak competences of procurement officials. The evidence seems to suggest that a reorganization of the procurement system, both in terms of partial centralization and increased professionalization of procurement officials, would help improve award‐stage procurement performance. ( JEL H11, H57, H71, H77) |
| Author | Chiappinelli, Olga |
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| Cites_doi | 10.1016/S0047-2727(02)00185-8 10.1257/pol.20150426 10.1016/j.irle.2014.08.004 10.1017/CBO9780511492556 10.1111/sjoe.12225 10.2139/ssrn.3064621 10.3386/w23350 10.1162/0033553041382120 10.1515/9780691186290 10.1007/s00712-013-0352-6 10.1787/gov_glance-2017-en 10.1093/jleo/ewn002 10.1023/A:1018325609859 10.1016/j.jpubeco.2008.05.003 10.1016/j.ejpoleco.2013.01.002 10.1287/mnsc.2016.2628 10.1093/jleo/ewv001 10.1287/mnsc.2014.2071 10.1016/j.jpubeco.2013.10.008 10.1093/oxrep/grp024 10.1257/mic.20150240 10.1080/00036846.2011.556589 10.1016/S0167-7187(98)00044-7 10.1257/app.6.1.108 10.1017/CBO9780511492556.004 10.1016/S0047-2727(02)00164-0 10.3386/w24201 10.1007/s10797-005-1619-9 10.1016/S0047-2727(00)00158-4 10.1016/S0047-2727(02)00141-X 10.1257/aer.99.4.1278 10.1016/j.ejpoleco.2014.01.010 |
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| Title | Decentralization and Public Procurement Performance: New Evidence from Italy |
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