search query: @indexterm DOMESTIC SERVICES / total: 3
reference: 2 / 3
| Author: | Breton, A. Salmon, P. |
| Title: | Are Discriminatory Procurement Policies Motivated by Protectionism? |
| Journal: | Kyklos
1996 : VOL. 49:1, p. 47-68 |
| Index terms: | TRADE BARRIERS PURCHASE TAX DOMESTIC SERVICES GOVERNMENT |
| Language: | eng |
| Abstract: | When purchasing goods and services, governments often discriminate in favour of domestic suppliers. It is widely assumed that such behaviour is motivated by protectionism. Although this interpretation is sometimes valid, it is also puzzling. After reviewing some of the puzzles, the paper proposes an alterntive explanation of preferential procurement based on the assumption that governmental buyers want to purchase goods and services at minimun cost, but must do this in a context in which, because of the presence of unverifiable services, contracts are necessarily incomplete. The paper argues that preferential purchasing can guarantee the efficient delivery of these unverifiable services. |
SCIMA