Journal of the European Economic Association · 2019 · 90 citations · 27 references
BusinessBusiness EconomicsEconomicsAuction TheoryContract TheoryPublic ProcurementContract AwardCorporate GivingPolitical ContributionsProcurementProcurement AuctionsProcurement ContractsGovernment Procurement AuctionsPublic Procurement EconomicsPublic Procurement IncentivesPublic Procurement TenderingPublic Procurement TendersVictory Theory
Abstract This paper studies whether firms trade political contributions for public procurement contracts. Combining data on Lithuanian government tenders, corporate donors, and firm characteristics, I examine how a ban on corporate contributions affects the awarding of procurement contracts to companies that donated in the past. Consistent with political favoritism, donors’ probability of winning falls by five percentage points as compared to that of nondonor firms after the ban. Evidence on bidding and victory margins suggests that corporate donors may receive auction-relevant information affecting procurement outcomes in their favor.
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Mara Faccio · American Economic Review · 2006 · 4K citations
Estimating the Value of Political Connections
Raymond Fisman · American Economic Review · 2001 · 3K citations
Political Connections and Corporate Bailouts
Mara Faccio, Ronald W. Masulis, John J. McConnell · The Journal of Finance · 2006 · 2.5K citations