Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 928: A Comparison of Techniques to Evaluate Policies in Public Procurement

David Sundström ()
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David Sundström: Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S 901 87 Umeå, Sweden

Abstract: Empirical evaluations of policies implemented through public procurements are commonly carried out using linear regressions or by more involved nonlinear structural models. The aspiration is typically to determine a marginal effect. Here, I compare marginal effects generated under both types of specifications. I study how a political initiative to make firms less environmentally damaging implemented through public procurements influence Swedish firms’ behavior. The collected evidence brings about a statistically as well as economically significant effect on firms’ bids and costs.

Keywords: binding function; green public procurement; indirect inference; orthogonal polynomial regression; simulation estimation; structural estimation

JEL-codes: C15; C57; D44; H57

26 pages, First version: May 4, 2016. Revised: June 17, 2016.

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