Persistent Link:
http://hdl.handle.net/10150/323448
Title:
Construction Procurements during the 2008 Economic Crisis
Author:
Asgari, Leila
Issue Date:
2014
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
In this study, I examine how the 2008 economic crisis and resulting stimulus spending affected firms' costs and project prices paid by one state government, using data from highway construction procurements in Arizona. To fully investigate the extent of these effects, I develop a structural auction model that establishes an intertemporal link to firms' marginal costs (both participation and construction costs) by introducing dynamic synergies from bidding and winning auctions, i.e., the current costs can be decreased for the firms that bid (participated) or won in a previous period. The presence of bidding synergies can be explained by lower participation cost for a bidder who prepared a bid in the previous round. The potential explanation for winning synergies is the existence of synergistic and complementary tasks across multiple projects. The estimates show that bidding and winning synergies did exist and did affect firms' marginal costs. Moreover, cost estimates show that firms' construction costs were, on average, 5.4 percentage points lower during the crisis. Part of the reason for the cost reduction is that the stimulus resulted in frequent small projects, which encouraged many bidders to participate, thereby enjoying from bidding and winning synergies, and lowering costs.
Type:
text; Electronic Dissertation
Keywords:
Economics
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Graduate College; Economics
Degree Grantor:
University of Arizona
Advisor:
Gowrisankaran, Gautam

Full metadata record

DC FieldValue Language
dc.language.isoen_USen
dc.titleConstruction Procurements during the 2008 Economic Crisisen_US
dc.creatorAsgari, Leilaen_US
dc.contributor.authorAsgari, Leilaen_US
dc.date.issued2014-
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractIn this study, I examine how the 2008 economic crisis and resulting stimulus spending affected firms' costs and project prices paid by one state government, using data from highway construction procurements in Arizona. To fully investigate the extent of these effects, I develop a structural auction model that establishes an intertemporal link to firms' marginal costs (both participation and construction costs) by introducing dynamic synergies from bidding and winning auctions, i.e., the current costs can be decreased for the firms that bid (participated) or won in a previous period. The presence of bidding synergies can be explained by lower participation cost for a bidder who prepared a bid in the previous round. The potential explanation for winning synergies is the existence of synergistic and complementary tasks across multiple projects. The estimates show that bidding and winning synergies did exist and did affect firms' marginal costs. Moreover, cost estimates show that firms' construction costs were, on average, 5.4 percentage points lower during the crisis. Part of the reason for the cost reduction is that the stimulus resulted in frequent small projects, which encouraged many bidders to participate, thereby enjoying from bidding and winning synergies, and lowering costs.en_US
dc.typetexten
dc.typeElectronic Dissertationen
dc.subjectEconomicsen_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.disciplineEconomicsen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorGowrisankaran, Gautamen_US
dc.contributor.committeememberGowrisankaran, Gautamen_US
dc.contributor.committeememberHirano, Keisukeen_US
dc.contributor.committeememberLanger, Ashleyen_US
dc.contributor.committeememberWoutersen, Tiemenen_US
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