(Public Procurement) Political Economy of Cost Savings: Fixing a Main Institutional Failure

2 Pages Posted: 16 May 2017

Date Written: 2010

Abstract

Research on government e-procurement suggests the existence of price savings ranging from 5% to 20% of the total value of public purchases, which also account for a significant part of GDP. Nevertheless, there is no clear view about the consequences of that saved money. This paper points out, contradicting the common knowledge, the reasons why price savings in public procurement causes an institutional failure. It also describes the type of policy instrument needed to solve the described failure caused by price savings captured by institutions (= procurement entities) in which ICTs must play a key role.

Keywords: Public Procurement, Saving, Government Failures

JEL Classification: H57, H69, H83

Suggested Citation

Burr, Guillermo, (Public Procurement) Political Economy of Cost Savings: Fixing a Main Institutional Failure (2010). Available at SSRN: https://ssrn.com/abstract=2966577 or http://dx.doi.org/10.2139/ssrn.2966577

Guillermo Burr (Contact Author)

ChileCompra ( email )

Teatinos 120
Santiago, 8340487
Chile

Register to save articles to
your library

Register

Paper statistics

Downloads
14
Abstract Views
144
PlumX Metrics