Type: Working Paper
Bunching below thresholds to manipulate public procurement
Working Paper, EUI RSCAS, 2019/17, Global Governance Programme-338, [Global Economics]
TAS, Bedri Kamil Onur, Bunching below thresholds to manipulate public procurement, EUI RSCAS, 2019/17, Global Governance Programme-338, [Global Economics] - http://hdl.handle.net/1814/61366
Retrieved from Cadmus, EUI Research Repository
I examine a manipulation scheme that public authorities can use to exercise more discretion in public procurement. I propose that regression discontinuity manipulation tests can be implemented to identify manipulative authorities. I investigate the European Union public procurement data set. I find that 10-13% of examined authorities have high probabilities of bunching estimated costs just below thresholds. Manipulative authorities have significantly lower probabilities of employing competitive procurement procedure. The bunching manipulation scheme significantly diminishes cost-effectiveness of public procurement. On average, prices of below threshold contracts are 18-28% higher when the authority has an elevated probability of bunching.
Cadmus permanent link: http://hdl.handle.net/1814/61366
Series/Number: EUI RSCAS; 2019/17; Global Governance Programme-338; [Global Economics]