Corruption Red Flags in Public Procurement: New Evidence from Italian Calls for Tenders
39 Pages Posted: 10 Feb 2021
Date Written: September 16, 2020
This paper contributes to the analysis of quantitative indicators (i.e., red flags or screens) to detect corruption in public procurement. It presents three main results through detailed data on the content of calls for tenders involving roadwork contracts in Italy. First, it expands the set of commonly discussed indicators in the literature to new ones derived from operative practices of police forces and the judiciary. Second, using novel and unique data on firm-level corruption risk, this study validates the effectiveness of the indicators. Third, it quantifies the increased corruption-prediction ability when indicators that are known to be unavailable to the corruption-monitoring authority are included in the prediction exercise.
Keywords: Public procurement, corruption, red flags
JEL Classification: D44, D47, H57, R42
Suggested Citation: Suggested Citation