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100 _aBest, M.C., Hjort, J. and Szakonyi, D.
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245 _aIndividuals and organizations as sources of state effectiveness
260 _aThe American Economic Review
300 _a113(8), Aug, 2023: p.2121-2167
520 _aBureaucrats implement policy. How important are they for a state's productivity? And do the trade-offs between policies depend on their effectiveness? Using data on 16 million public purchases in Russia, we show that 39 percent of the variation in prices paid for narrowly defined items is due to the individual bureaucrats and organizations who manage procurement. Low-price buyers also display higher spending quality. Theory suggests that such differences in effectiveness can be pivotal for policy design. To illustrate, we show that a common one—bid preferences for domestic suppliers—substantially improves procurement performance, but only when implemented by ineffective bureaucrats.- Reproduced https://www.aeaweb.org/articles?id=10.1257/aer.20191598
773 _aThe American Economic Review
906 _aPUBLIC ADMINISTRATION
942 _cAR