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The Value of Revolving Doors in Public Procurement

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  • Barbosa, Klenio
  • Straub, Stéphane

Abstract

We investigate the impact of revolving door on public procurement outcomes, combining 10 years of Brazilian health procurement data with a comprehensive employer-employee dataset tracking individuals’ job trajectories. We identify how movements between public administrations and private providers affect total contracting amounts and acquisition prices. Analyzing career changes in both directions, we uncover positive and negative effects, consistent respectively with reward for high-skill workers’ competence, and collusive behavior. Administration-to-supplier movements appear beneficial to public bodies, while supplier-to-administration ones are detrimental. This points to unexpected policy implications related to the tolerance of revolving door practices.

Suggested Citation

  • Barbosa, Klenio & Straub, Stéphane, 2017. "The Value of Revolving Doors in Public Procurement," TSE Working Papers 17-873, Toulouse School of Economics (TSE), revised May 2020.
    • Handle: RePEc:tse:wpaper:32283
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    References listed on IDEAS

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    Cited by:

    1. Alessandro De Chiara & Marco A. Schwarz, 2020. "A Dynamic Theory of Regulatory Capture," Working Papers 2020-12, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Incerti, Trevor, 2024. "Who benefits from the revolving door? Evidence from Japan," OSF Preprints cmt7j, Center for Open Science.

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    More about this item

    Keywords

    Revolving doors; Procurement; Public Officials Career Path; Personnel Economics.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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