eprintid: 10169814 rev_number: 7 eprint_status: archive userid: 699 dir: disk0/10/16/98/14 datestamp: 2023-05-15 15:59:53 lastmod: 2023-05-15 15:59:53 status_changed: 2023-05-15 15:59:53 type: article metadata_visibility: show sword_depositor: 699 creators_name: Hjort, Jonas creators_name: Best, Michael C creators_name: Szakonyi, David title: Individuals and Organizations as Sources of State Effectiveness ispublished: inpress divisions: UCL divisions: B03 divisions: C03 divisions: F24 note: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. abstract: Bureaucrats implement policy. How important are they for a state’s productivity? And do the tradeoffs between policies depend on their effectiveness? Using data on 16 million public purchases in Russia, we show that 39 percent of the variation in prices paid for narrowly defined items is due to the individual bureaucrats and organizations who manage procurement. Low-price buyers also display higher spending quality. Theory suggests that such differences in effectiveness can be pivotal for policy design. To illustrate, we show that a common one—bid preferences for domestic suppliers—substantially improves procurement performance, but only when implemented by ineffective bureaucrats. date: 2023-07-01 date_type: published publisher: American Economic Association official_url: https://www.aeaweb.org/articles?id=10.1257/aer.20191598 oa_status: green full_text_type: other language: eng primo: open primo_central: open_green verified: verified_manual elements_id: 2022436 lyricists_name: Hjort, Jonas lyricists_id: JKHJO90 actors_name: Hjort, Jonas actors_id: JKHJO90 actors_role: owner full_text_status: public publication: The American Economic Review issn: 0002-8282 citation: Hjort, Jonas; Best, Michael C; Szakonyi, David; (2023) Individuals and Organizations as Sources of State Effectiveness. The American Economic Review (In press). Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/10169814/1/18543.pdf