The paper analyzes the effects on supplier selection of a 2011 Italian reform extending the use of discretionary procedures in awarding public works contracts.
The results indicate that granting broader discretion to public administrations is correlated with a reduction in the labor productivity of winning firms and an increase in the share of contracts awarded to firms having local politicians among their directors or shareholders. These effects are concentrated among lower quality procurement agencies.
Published in 2020 in: Journal of Law, Economics, and Organization, v. 37, 1, pp. 134-166.
