IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v64y2020ics0176268020300719.html
   My bibliography  Save this article

The effects of mafia infiltration on public procurement performance

Author

Listed:
  • Ravenda, Diego
  • Giuranno, Michele G.
  • Valencia-Silva, Maika M.
  • Argiles-Bosch, Josep M.
  • García-Blandón, Josep

Abstract

We examine the effects of Mafia infiltration on public procurement performance, based on a sample of 68,063 public work contracts (PWC) awarded by Italian municipalities over the period 2012–2017, of which 687 are identified as Mafia-infiltrated, either because of being awarded by municipal councils subsequently dissolved due to Mafia infiltration, or because of being won by Mafia-owned firms.

Suggested Citation

  • Ravenda, Diego & Giuranno, Michele G. & Valencia-Silva, Maika M. & Argiles-Bosch, Josep M. & García-Blandón, Josep, 2020. "The effects of mafia infiltration on public procurement performance," European Journal of Political Economy, Elsevier, vol. 64(C).
  • Handle: RePEc:eee:poleco:v:64:y:2020:i:c:s0176268020300719
    DOI: 10.1016/j.ejpoleco.2020.101923
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268020300719
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejpoleco.2020.101923?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Massimo Finocchiaro Castro & Calogero Guccio & Ilde Rizzo, 2014. "An assessment of the waste effects of corruption on infrastructure provision," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(4), pages 813-843, August.
    2. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    3. Baldi, Simona & Bottasso, Anna & Conti, Maurizio & Piccardo, Chiara, 2016. "To bid or not to bid: That is the question: Public procurement, project complexity and corruption," European Journal of Political Economy, Elsevier, vol. 43(C), pages 89-106.
    4. Ludovica Gambaro & Jan Marcus & Frauke Peter, 2019. "School entry, afternoon care, and mothers’ labour supply," Empirical Economics, Springer, vol. 57(3), pages 769-803, September.
    5. Ravenda, Diego & Valencia-Silva, Maika M. & Argiles-Bosch, Josep M. & García-Blandón, Josep, 2019. "Money laundering through the strategic management of accounting transactions," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 60(C), pages 65-85.
    6. Gianmarco Daniele & Benny Geys, 2015. "Organised Crime, Institutions and Political Quality: Empirical Evidence from Italian Municipalities," Economic Journal, Royal Economic Society, vol. 125(586), pages 233-255, August.
    7. Decio Coviello & Luigi Moretti & Giancarlo Spagnolo & Paola Valbonesi, 2018. "Court Efficiency and Procurement Performance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 826-858, July.
    8. C. Guccio & G. Pignataro & I. Rizzo, 2012. "Determinants of adaptation costs in procurement: an empirical estimation on Italian public works contracts," Applied Economics, Taylor & Francis Journals, vol. 44(15), pages 1891-1909, May.
    9. Decarolis, Francesco & Palumbo, Giuliana, 2015. "Renegotiation of public contracts: An empirical analysis," Economics Letters, Elsevier, vol. 132(C), pages 77-81.
    10. İlke Onur & Rasim Özcan & Bedri Taş, 2012. "Public Procurement Auctions and Competition in Turkey," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(3), pages 207-223, May.
    11. Iacus, Stefano & King, Gary & Porro, Giuseppe, 2009. "cem: Software for Coarsened Exact Matching," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 30(i09).
    12. Chiara D’Alpaos & Michele Moretto & Paola Valbonesi & Sergio Vergalli, 2013. "Time overruns as opportunistic behavior in public procurement," Journal of Economics, Springer, vol. 110(1), pages 25-43, September.
    13. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    14. Francesco Decarolis, 2014. "Awarding Price, Contract Performance, and Bids Screening: Evidence from Procurement Auctions," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 108-132, January.
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    16. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    17. Decio Coviello & Stefano Gagliarducci, 2017. "Tenure in Office and Public Procurement," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 59-105, August.
    18. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    19. Decio Coviello & Andrea Guglielmo & Giancarlo Spagnolo, 2018. "The Effect of Discretion on Procurement Performance," Management Science, INFORMS, vol. 64(2), pages 715-738, February.
    20. Paolo Canonico & Stefano Consiglio & Ernesto De Nito & Gianluigi Mangia, 2012. "Shining a Light on the Dark Side of Business:The Resistible Growth of Criminal Firms in the Public Sector," International Review of Public Administration, Taylor & Francis Journals, vol. 17(1), pages 149-177, April.
    21. Matthew Blackwell & Stefano Iacus & Gary King & Giuseppe Porro, 2009. "cem: Coarsened exact matching in Stata," Stata Journal, StataCorp LP, vol. 9(4), pages 524-546, December.
    22. Frédéric Boehm & Juanita Olaya, 2006. "Corruption In Public Contracting Auctions: The Role Of Transparency In Bidding Processes," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 431-452, December.
    23. Solé-Ollé, Albert & Sorribas-Navarro, Pilar, 2018. "Trust no more? On the lasting effects of corruption scandals," European Journal of Political Economy, Elsevier, vol. 55(C), pages 185-203.
    24. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    25. Fazekas, Mihály & Tóth, Bence, 2018. "The extent and cost of corruption in transport infrastructure. New evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 35-54.
    26. Decarolis, Francesco & Giorgiantonio, Cristina, 2015. "Local public procurement regulations: The case of Italy," International Review of Law and Economics, Elsevier, vol. 43(C), pages 209-226.
    27. Toke S. Aidt & Vitor Castro & Rodrigo Martins, 2018. "Shades of red and blue: government ideology and sustainable development," Public Choice, Springer, vol. 175(3), pages 303-323, June.
    28. Hessami, Zohal, 2014. "Political corruption, public procurement, and budget composition: Theory and evidence from OECD countries," European Journal of Political Economy, Elsevier, vol. 34(C), pages 372-389.
    29. Miriam A. Golden & Lucio Picci, 2005. "Proposal For A New Measure Of Corruption, Illustrated With Italian Data," Economics and Politics, Wiley Blackwell, vol. 17(1), pages 37-75, March.
    30. Simon Board, 2007. "Bidding into the Red: A Model of Post‐Auction Bankruptcy," Journal of Finance, American Finance Association, vol. 62(6), pages 2695-2723, December.
    31. Buonanno, Paolo & Prarolo, Giovanni & Vanin, Paolo, 2016. "Organized crime and electoral outcomes. Evidence from Sicily at the turn of the XXI century," European Journal of Political Economy, Elsevier, vol. 41(C), pages 61-74.
    32. Guccio, Calogero & Pignataro, Giacomo & Rizzo, Ilde, 2014. "Do local governments do it better? Analysis of time performance in the execution of public works," European Journal of Political Economy, Elsevier, vol. 34(C), pages 237-252.
    33. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
    34. Patrick Bajari & Stephanie Houghton & Steven Tadelis, 2014. "Bidding for Incomplete Contracts: An Empirical Analysis of Adaptation Costs," American Economic Review, American Economic Association, vol. 104(4), pages 1288-1319, April.
    35. Bucciol, Alessandro & Chillemi, Ottorino & Palazzi, Giacomo, 2013. "Cost overrun and auction format in small size public works," European Journal of Political Economy, Elsevier, vol. 30(C), pages 35-42.
    36. Nicola Branzoli & Francesco Decarolis, 2015. "Entry and Subcontracting in Public Procurement Auctions," Management Science, INFORMS, vol. 61(12), pages 2945-2962, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francesca M. Calamunci & Livio Ferrante & Rossana Scebba, 2022. "Closed for mafia: Evidence from the removal of mafia firms on commercial property values," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1487-1511, November.
    2. Baraldi, Anna Laura & Cantabene, Claudia & De Iudicibus, Alessandro, 2023. "Fighting crime for improved recycling: evaluating an anti-mafia policy on source separation of waste," MPRA Paper 120296, University Library of Munich, Germany.
    3. Fabio Fiorillo & Michele G. Giuranno & Agnese Sacchi, 2021. "Asymmetric decentralization: distortions and opportunities," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 625-656, July.
    4. Di Giorno, Saverio & Dileo, Ivano & Busato, Francesco, 2024. "Shades of grand corruption among allocative efficiency and institutional settings. The case of Italy," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    5. Forgione, Antonio Fabio & Migliardo, Carlo, 2023. "Mafia risk perception: Evaluating the effect of organized crime on firm technical efficiency and investment proclivity," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    6. Audinga Baltrunaite & Tommaso Orlando & Gabriele Rovigatti, 2021. "The implementation of public works in Italy: institutional features and regional characteristics," Questioni di Economia e Finanza (Occasional Papers) 659, Bank of Italy, Economic Research and International Relations Area.
    7. Baraldi, Anna Laura & Papagni, Erasmo & Stimolo, Marco, 2024. "Neutralizing the tentacles of organized crime. Assessment of the impact of an anti-crime measure on mafia violence in Italy," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 57-85.
    8. Emanuel Wittberg & Mihály Fazekas, 2023. "Firm performance, imperfect competition, and corruption risks in procurement: evidence from Swedish municipalities," Public Choice, Springer, vol. 197(1), pages 227-251, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Calogero Guccio & Domenico Lisi & Ilde Rizzo, 2019. "When the purchasing officer looks the other way: on the waste effects of debauched local environment in public works execution," Economics of Governance, Springer, vol. 20(3), pages 205-236, September.
    2. Chiappinelli, Olga, 2020. "Decentralization and Public Procurement Performance: New Evidence from Italy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(2), pages 856-880.
    3. Marina Cavalieri & Calogero Guccio & Domenico Lisi & Ilde Rizzo, 2020. "Does Institutional Quality Matter for Infrastructure Provision? A Non-parametric Analysis for Italian Municipalities," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 521-562, November.
    4. Baldi, Simona & Bottasso, Anna & Conti, Maurizio & Piccardo, Chiara, 2016. "To bid or not to bid: That is the question: Public procurement, project complexity and corruption," European Journal of Political Economy, Elsevier, vol. 43(C), pages 89-106.
    5. Giuseppe F Gori & Patrizia Lattarulo & Marco Mariani, 2017. "Understanding the procurement performance of local governments: A duration analysis of public works," Environment and Planning C, , vol. 35(5), pages 809-827, August.
    6. Finocchiaro Castro, Massimo & Guccio, Calogero, 2021. "Does greater discretion improve the performance in the execution of public works? Evidence from the reform of discretionary thresholds in Italy," EconStor Preprints 247648, ZBW - Leibniz Information Centre for Economics.
    7. Marina Cavalieri & Rossana Cristaudo & Livio Ferrante & Calogero Guccio, 2019. "Does the Project Design Matter for the Performance of Infrastructure Execution? An Assessment for Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(1), pages 39-77, March.
    8. Giuseppe Francesco Gori & Patrizia Lattarulo & Marco Mariani, 2021. "The Expediting Effect of Monitoring on Infrastructural Works. A Regression-Discontinuity Approach with Multiple Assignment Variables," Papers 2102.09625, arXiv.org.
    9. Decio Coviello & Luigi Moretti & Giancarlo Spagnolo & Paola Valbonesi, 2018. "Court Efficiency and Procurement Performance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 826-858, July.
    10. Massimo Finocchiaro Castro & Calogero Guccio & Giacomo Pignataro & Ilde Rizzo, 2018. "Is competition able to counteract the inefficiency of corruption? The case of Italian public works," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 55-84, March.
    11. Cavalieri, Marina & Cristaudo, Rossana & Guccio, Calogero, 2019. "On the magnitude of cost overruns throughout the project life-cycle: An assessment for the Italian transport infrastructure projects," Transport Policy, Elsevier, vol. 79(C), pages 21-36.
    12. Decarolis, Francesco & Palumbo, Giuliana, 2015. "Renegotiation of public contracts: An empirical analysis," Economics Letters, Elsevier, vol. 132(C), pages 77-81.
    13. Laura Rondi & Paola Valbonesi, 2017. "Pre- and post-award outsourcing: Temporary partnership versus subcontracting in public procurement," "Marco Fanno" Working Papers 0211, Dipartimento di Scienze Economiche "Marco Fanno".
    14. De Luca, Giacomo & Lisi, Domenico & Martorana, Marco & Siciliani, Luigi, 2021. "Does higher Institutional Quality improve the Appropriateness of Healthcare Provision?," Journal of Public Economics, Elsevier, vol. 194(C).
    15. Joseph, George & Hoo, Yi Rong & Moqueet, Nazia Sultana & Chellaraj, Gnanaraj, 2023. "Early-life exposure to unimproved sanitation and delayed school enrollment: Evidence from Bangladesh," World Development Perspectives, Elsevier, vol. 32(C).
    16. Decio Coviello & Andrea Guglielmo & Giancarlo Spagnolo, 2018. "The Effect of Discretion on Procurement Performance," Management Science, INFORMS, vol. 64(2), pages 715-738, February.
    17. Gambacorta, Leonardo & Cornelli, Giulio & Doerr, Sebastian & Merrouche, Ouarda, 2020. "Inside the Regulatory Sandbox: Effects on Fintech Funding," CEPR Discussion Papers 15502, C.E.P.R. Discussion Papers.
    18. Cavalieri, Marina & Guccio, Calogero & Rizzo, Ilde, 2017. "On the role of environmental corruption in healthcare infrastructures: An empirical assessment for Italy using DEA with truncated regression approach," Health Policy, Elsevier, vol. 121(5), pages 515-524.
    19. Giuseppe Gori & Patrizia Lattarulo & Marco Mariani, 2014. "The effect of Regional Law 35/2011 on strategic public works," Studi e approfondimenti 521, Istituto Regionale per la Programmazione Economica della Toscana.
    20. Galletta, Sergio, 2017. "Law enforcement, municipal budgets and spillover effects: Evidence from a quasi-experiment in Italy," Journal of Urban Economics, Elsevier, vol. 101(C), pages 90-105.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:64:y:2020:i:c:s0176268020300719. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.