Tender and contractor characteristics for high- and low-discretion tenders.
| . | High discretion . | Low discretion . | ||
|---|---|---|---|---|
| . | Mean . | Std. Dev. . | Mean . | Std. Dev. . |
| Panel A—Tender characteristics | ||||
| Anticipated contract value (M forints) | 15.8 | 12.2 | 29.5 | 29.6 |
| Number of bidders | 2.28 | 1.02 | 2.95 | 2.71 |
| Log(normalized price) | −0.071 | 0.224 | −0.130 | 0.293 |
| Panel B—Contractor characteristics | ||||
| Log(TFP) | 8.46 | 1.50 | 9.06 | 2.02 |
| Employment | 93 | 593 | 198 | 1008 |
| Firm Age | 13.5 | 8.5 | 15.1 | 8.8 |
| Domestic | 0.915 | 0.279 | 0.805 | 0.397 |
| Incumbent | 0.342 | 0.474 | 0.442 | 0.497 |
| Distance | 60.7 | 73.9 | 68.4 | 77.2 |
| Panel C—Political connection of contractor | ||||
| Right connected | 0.160 | 0.366 | 0.078 | 0.268 |
| Left connected | 0.028 | 0.165 | 0.025 | 0.156 |
| Unconnected | 0.429 | 0.495 | 0.476 | 0.499 |
| Panel D—Ex-post contract execution | ||||
| Ex-post contract modification | 0.178 | 0.383 | ||
| Delay in delivery (in days) | −4.48 | 210 | ||
| Ex-post log(normalized price) | −0.085 | 1.31 | ||
| Number of contracts | 18,742 | 29,638 | ||
| . | High discretion . | Low discretion . | ||
|---|---|---|---|---|
| . | Mean . | Std. Dev. . | Mean . | Std. Dev. . |
| Panel A—Tender characteristics | ||||
| Anticipated contract value (M forints) | 15.8 | 12.2 | 29.5 | 29.6 |
| Number of bidders | 2.28 | 1.02 | 2.95 | 2.71 |
| Log(normalized price) | −0.071 | 0.224 | −0.130 | 0.293 |
| Panel B—Contractor characteristics | ||||
| Log(TFP) | 8.46 | 1.50 | 9.06 | 2.02 |
| Employment | 93 | 593 | 198 | 1008 |
| Firm Age | 13.5 | 8.5 | 15.1 | 8.8 |
| Domestic | 0.915 | 0.279 | 0.805 | 0.397 |
| Incumbent | 0.342 | 0.474 | 0.442 | 0.497 |
| Distance | 60.7 | 73.9 | 68.4 | 77.2 |
| Panel C—Political connection of contractor | ||||
| Right connected | 0.160 | 0.366 | 0.078 | 0.268 |
| Left connected | 0.028 | 0.165 | 0.025 | 0.156 |
| Unconnected | 0.429 | 0.495 | 0.476 | 0.499 |
| Panel D—Ex-post contract execution | ||||
| Ex-post contract modification | 0.178 | 0.383 | ||
| Delay in delivery (in days) | −4.48 | 210 | ||
| Ex-post log(normalized price) | −0.085 | 1.31 | ||
| Number of contracts | 18,742 | 29,638 | ||
Notes: This table reports means and standard errors of different tender and contractor characteristics for high and low-discretion tenders separately. Low-discretion tenders include open auction and negotiation with an announcement, while high discretion is an invitational procedure. Log(normalized price) is the log-ratio of the winning bid and the anticipated contract value, Domestic is an indicator for domestically owned contractors, Distance is the distance (in km) of the requesting agency and the contractor’s HQ, Incumbent is an indicator for contractors, which won contracts from the same agency–product category pair before. The share of right-, left-, and unconnected winners in Panel C is computed for tenders with at least one top 500 participant. Ex-post execution measures in Panel D are only available to a subset of contracts in the pre-reform period.
Tender and contractor characteristics for high- and low-discretion tenders.
| . | High discretion . | Low discretion . | ||
|---|---|---|---|---|
| . | Mean . | Std. Dev. . | Mean . | Std. Dev. . |
| Panel A—Tender characteristics | ||||
| Anticipated contract value (M forints) | 15.8 | 12.2 | 29.5 | 29.6 |
| Number of bidders | 2.28 | 1.02 | 2.95 | 2.71 |
| Log(normalized price) | −0.071 | 0.224 | −0.130 | 0.293 |
| Panel B—Contractor characteristics | ||||
| Log(TFP) | 8.46 | 1.50 | 9.06 | 2.02 |
| Employment | 93 | 593 | 198 | 1008 |
| Firm Age | 13.5 | 8.5 | 15.1 | 8.8 |
| Domestic | 0.915 | 0.279 | 0.805 | 0.397 |
| Incumbent | 0.342 | 0.474 | 0.442 | 0.497 |
| Distance | 60.7 | 73.9 | 68.4 | 77.2 |
| Panel C—Political connection of contractor | ||||
| Right connected | 0.160 | 0.366 | 0.078 | 0.268 |
| Left connected | 0.028 | 0.165 | 0.025 | 0.156 |
| Unconnected | 0.429 | 0.495 | 0.476 | 0.499 |
| Panel D—Ex-post contract execution | ||||
| Ex-post contract modification | 0.178 | 0.383 | ||
| Delay in delivery (in days) | −4.48 | 210 | ||
| Ex-post log(normalized price) | −0.085 | 1.31 | ||
| Number of contracts | 18,742 | 29,638 | ||
| . | High discretion . | Low discretion . | ||
|---|---|---|---|---|
| . | Mean . | Std. Dev. . | Mean . | Std. Dev. . |
| Panel A—Tender characteristics | ||||
| Anticipated contract value (M forints) | 15.8 | 12.2 | 29.5 | 29.6 |
| Number of bidders | 2.28 | 1.02 | 2.95 | 2.71 |
| Log(normalized price) | −0.071 | 0.224 | −0.130 | 0.293 |
| Panel B—Contractor characteristics | ||||
| Log(TFP) | 8.46 | 1.50 | 9.06 | 2.02 |
| Employment | 93 | 593 | 198 | 1008 |
| Firm Age | 13.5 | 8.5 | 15.1 | 8.8 |
| Domestic | 0.915 | 0.279 | 0.805 | 0.397 |
| Incumbent | 0.342 | 0.474 | 0.442 | 0.497 |
| Distance | 60.7 | 73.9 | 68.4 | 77.2 |
| Panel C—Political connection of contractor | ||||
| Right connected | 0.160 | 0.366 | 0.078 | 0.268 |
| Left connected | 0.028 | 0.165 | 0.025 | 0.156 |
| Unconnected | 0.429 | 0.495 | 0.476 | 0.499 |
| Panel D—Ex-post contract execution | ||||
| Ex-post contract modification | 0.178 | 0.383 | ||
| Delay in delivery (in days) | −4.48 | 210 | ||
| Ex-post log(normalized price) | −0.085 | 1.31 | ||
| Number of contracts | 18,742 | 29,638 | ||
Notes: This table reports means and standard errors of different tender and contractor characteristics for high and low-discretion tenders separately. Low-discretion tenders include open auction and negotiation with an announcement, while high discretion is an invitational procedure. Log(normalized price) is the log-ratio of the winning bid and the anticipated contract value, Domestic is an indicator for domestically owned contractors, Distance is the distance (in km) of the requesting agency and the contractor’s HQ, Incumbent is an indicator for contractors, which won contracts from the same agency–product category pair before. The share of right-, left-, and unconnected winners in Panel C is computed for tenders with at least one top 500 participant. Ex-post execution measures in Panel D are only available to a subset of contracts in the pre-reform period.
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