Corruption Red Flags in Public Procurement: New Evidence from Italian Calls for Tenders

39 Pages Posted: 10 Feb 2021

See all articles by Francesco Decarolis

Francesco Decarolis

Bocconi University - Department of Economics

Cristina Giorgiantonio

Bank of Italy

Multiple version iconThere are 3 versions of this paper

Date Written: September 16, 2020

Abstract

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

Decarolis, Francesco and Giorgiantonio, Cristina, Corruption Red Flags in Public Procurement: New Evidence from Italian Calls for Tenders (September 16, 2020). Available at SSRN: https://ssrn.com/abstract=3744084 or http://dx.doi.org/10.2139/ssrn.3744084

Francesco Decarolis (Contact Author)

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Cristina Giorgiantonio

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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