|
|
|
|
||||
|
||||
Politics and Procurement: Evidence from Cleaning ContractsAri HyytinenUniversity of Jyväskylä - School of Business and Economics Sofia LundbergUniversity of Umea - Department of Economics Otto ToivanenKU Leuven - Faculty of Business and Economics (FBE); CEPR November 1, 2007 HECER Discussion Paper No. 196 Abstract: We study the effects of politics on public procurement in Swedish municipalities in 1990-98 using data on cleaning services. No procuring municipality committed to a standard auction format or to an explicit scoring rule. Political identity of the governing party is not correlated with the decision to procure, the decision to restrict entry, or the number of invited firms. However, left-wing municipalities are more likely not to invite "in-house firms". In our data, the lowest bidder does not win 58% of the time, and conditional on the lowest bid not winning, the municipalities end up paying a premium of 43%. Our discrete choice analysis shows that while all municipalities are price sensitive, left-wing councils 1.5 as price sensitive as right-wing councils. Conditional on bids, left-wing councils are more likely to choose a local firm. Politics thus matter and affect procurement outcomes.
Number of Pages in PDF File: 43 Keywords: Efficiency, favoritism, politics, public procurement JEL Classification: H57, D44, P16 working papers seriesDate posted: January 14, 2008 ; Last revised: August 13, 2009Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo8 in 0.328 seconds
