Free University of Bozen-Bolzano
Piazza dell'Universita 1
Institutional Affiliation: Free University of Bozen-Bolzano
NBER Working Papers and Publications
|January 2018||Bureaucratic Competence and Procurement Outcomes|
with Francesco Decarolis, Leonardo M. Giuffrida, Elisabetta Iossa, Giancarlo Spagnolo: w24201
Does a more competent public bureaucracy contribute to better economic outcomes? We address this question in the context of the US federal procurement of services and works by combining contract-level data on procurement performance and bureau-level data on competence and workforce characteristics. Using an instrumental variable strategy, we find that an increase in bureau competence causes a significant and economically important reduction in: i) delays, ii) cost overruns, and iii) number of renegotiations. Cooperation within the office appears to be a key driver of the findings.