Manipulation of Procurement Contracts: Evidence from the Introduction of Discretionary Thresholds

Palguta, Ján; Pertold, Filip

doi:10.1257/pol.20150511

Cited by 61 publications

(42 citation statements)

References 21 publications

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“…By exploiting exogenous changes in the size (i.e. threshold value) of the public works tenders in which PBs are granted larger degrees of discretion in managing procedures, recent studies have focussed on the effect of PB discretion on procurement performance ( Palguta and Pertold, 2017 , Baltrunaite et al, 2018 , Coviello et al, 2018a , Coviello et al, 2018b ). Our work differs from these as our empirical strategy is able to isolate the net effect of reference prices on PB discretion and, in turn, on public expenditure.…”

Section: Introductionmentioning

confidence: 99%

Purchasing medical devices: The role of buyer competence and discretion

Bucciol

Camboni

Valbonesi

2020

Journal of Health Economics

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This paper investigates the price variability of standardized medical devices purchased by Italian Public Buyers (PBs). A semiparametric approach is used to recover the marginal cost of each device. Average prices vary substantially between PBs; we show that most of the difference between the purchase prices and estimated costs is associated with a PB fixed effect, which, in turn, is related to the institutional characteristics and size of the PB. Repeating the main estimation using device fixed effects yields similar results. Finally, an exogenous policy change, i.e. the termination of the mandatory reference price regime, is used to assess how discretion affects medical device procurement given the skills of each PB. Our results show that less PB discretion — i.e. when mandatory reference prices apply – determines efficiency gains and losses for low- and high-skilled PBs, respectively.

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Section: Introductionmentioning

confidence: 99%

Purchasing medical devices: The role of buyer competence and discretion

Bucciol

Camboni

Valbonesi

2020

Journal of Health Economics

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“…In their research, J. Palguta and F. Pertold (2017) also presented evidence of how policy influences the creation of opportunities to avoid open competition in procurement and leads to manipulation of procurement principles. Manipulation is manifested in the procurement below the thresholds in construction works and services, and to a lesser extent in goods [18,307].…”

Section: Resultsmentioning

confidence: 99%

“…Significant contribution to the development of the system of public procurement and its control and analytical support has been made by leading domestic scientists such as: L. Katrosha [1], G. I. Pinkas [2], V. Yu. Kwach [3], R. V. Afanasiev [3], A. V. Chernihivskaya [7], N. G. Zdyrko [14; 21], O. D. Shevchuk [14], J. V. Falko [15], and foreign experts: J. G. Murray (2009) [4], L. Sintea (2016) [5], J. Jääskeläinen & J. Tukiainen (2019) [6], D. Coviello (2017) [17], S. Gagliarducci (2017) [17], J. Palguta (2017) [18], F. Pertold, (2017) [18], M. Mironov (2016) [19], E. Zhuravskaya (2016) [19], K. Gugler (2015) [19], M. Weichselbaumer (2015) [20] and C. Zulehner (2015) [20].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Public procurement in Ukraine as a state governance instrument: evaluation, control, improvement

Kaletnik¹,

Zdyrko²

2019

EA-XXI

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The article examines public procurement in the state administration. Its decisive role in implementing the concept of sustainable development as an instrument of economic, social and environmental policy has been proved. Tactical and strategic goals of public procurement are detailed. Problematic aspects of public procurement (changing legislation, inconsistency of the concept apparatus and the lack of proper organization of supervisory bodies) are outlined. The authors of the article focus on the established components of public procurement in accordance with legal requirements, as well as the classification of procedures for their implementation. The peculiarities of implementation of procedures for different types of public procurement in terms of their value and the order of fulfillment are determined. The article deals with analytical evaluation of public procurement in Ukraine, including positive tendencies for the growth of quantitative and qualitative indicators. Examples of reasons for disqualifications and rejection of participants are given. Special attention is paid to the composition and subordination of the controlling bodies of public procurement. The present research deals with the main tendencies of the state financial control. The authors of the article study typical violations of control results. The necessity of reforming the control system in order to increase its effectiveness has been proved. Information on state control bodies and appeals in foreign countries is presented along with the need for elimination of duplication of functions and powers of the controlling bodies. The model of the organization of the state financial control through creation of a single controlling specialized body, the Public Procurement Inspectorate, which includes representatives of all state bodies and public organizations, is proposed to increase the efficiency and effectiveness of control.

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“…We also find, however, that in other cases there is no such trade-off, and decreasing discounted surplus will reduce corruption without any negative impacts. Examples of this can perhaps be found in the pubic procurement reforms studied by Palguta and Pertold (2015) and Lewis-Faupel et al (2016), who find reducing discretion and decreasing interactions appears to reduce corruption with a non-negative effect on quality. In our model, these correspond to situations where the supervisor is on occasion dispensing the maximum possible bonus, but is never dispensing the minimum.…”

Section: Discussionmentioning

confidence: 97%