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The Impacts of Different Regulatory Regimes on the Effectiveness of Public Procurement

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  • Andrei Yakovlev
  • Andrey Tkachenko
  • Olga Demidova
  • Olga Balaeva

Abstract

The combination of two reforms in Russia, reform of public-sector entities and of public procurement, enables us to estimate the results of a transition from rigid to more flexible regulations in public procurement (PP). We consider two public universities in 2011–2012. The procurements of one university were regulated by rigid Federal Law during the entire period; the procurements of the other university were regulated by Federal Law until June 2011 and then by a more flexible regulation. Using the difference-in-differences methodology, we assess how the transition to this new regulation affects the main PP parameters. We show that more flexible regulation leads to a decline in bid competition but improves contract execution.

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  • Andrei Yakovlev & Andrey Tkachenko & Olga Demidova & Olga Balaeva, 2015. "The Impacts of Different Regulatory Regimes on the Effectiveness of Public Procurement," International Journal of Public Administration, Taylor & Francis Journals, vol. 38(11), pages 796-814, September.
    • Handle: RePEc:taf:lpadxx:v:38:y:2015:i:11:p:796-814
    DOI: 10.1080/01900692.2014.980909
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    1. Gregory Lewis & Patrick Bajari, 2011. "Procurement Contracting With Time Incentives: Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1173-1211.
    2. Dalen, Dag Morten & Moen, Espen R. & Riis, Christian, 2006. "Contract renewal and incentives in public procurement," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 269-285, March.
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    4. Klemperer, Paul, 2002. "How (not) to run auctions: The European 3G telecom auctions," European Economic Review, Elsevier, vol. 46(4-5), pages 829-845, May.
    5. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
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    1. Andrey V. Tkachenko & Andrei A. Yakovlev & Olga A. Demidova & Irina O. Volmenskikh, 2014. "The Effects Of Regulatory Reforms On Public Procurement: The Case Of A National University In Russia," HSE Working papers WP BRP 19/PA/2014, National Research University Higher School of Economics.

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    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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