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Author: | Fearon, G. Busch, L. |
Title: | Auditing and competitive bidding in the public sector |
Journal: | Journal of Public Economics
2006 : MAY, VOL. 90:4-5, p. 657-678 |
Index terms: | auctions auditing bidding economics public sector |
Language: | eng |
Abstract: | This article studies the effect of a ministrys budget size on the choice between auditing a (Niskanen)bureau and using competitive bidding in the provision of a publicly funded good. The authors find that the ministrys marginal expected payoff increases fastest with budget size for auctioning as opposed to auditing. |
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