Improving the Effectiveness of Public Procurement

March 10, 2016

Investigator: CDEP Affiliate Andrea Prat (with Oriana Bandiera, Michael Best, and Adnan Khan)

CDEP Affiliate Andrea Prat (with Oriana Bandiera, Michael Best, and Adnan Khan), has partnered with the government of Punjab, Pakistan to improve the effectiveness of public procurement. They develop two novel methods to measure procurement effectiveness and leakages based on detailed, item-level characteristics data and random field audits of purchases. They then implement a field experiment to study how these are affected by two policy reforms targeting bureaucrats’ extrinsic and intrinsic motivations to achieve value for money in procurement.