As Jean Monnet, recognized, often it takes a crisis for the EU to move ahead. This has been the case with the COVID-19 crisis and the launch of the Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) mechanism providing, for the first time, financial support (loans at convenient conditions) to member states to…
Governments around the world purchase goods and services from private firms by awarding public procurement contracts. This is likely one of the main channels through which public goods are supplied to the economy and an important source of potential revenues for firms. However, little has been written thus far on the subject.
This article looks at the equilibrium effects of enhancing competition for procurement contracts in prices and execution quality. By focusing on the U.S. Department of Defense, the authors provide empirical evidence on this trade-off to later develop an equilibrium model of competition for contracts.
Isaac Baley and Andrés Blanco propose a methodology to examine the macroeconomic implications of corporate taxes when firms are subject to investment frictions.