The Bigger the Better? Using Lotteries to Identify the Allocative Efficiency Effects of Firms Size

This study (Carrillo, Donaldson, Pomeranz and Singhal, 2019) uses lotteries for public procurement contracts in Ecuador to understand the role that public procurement may play in fostering economic growth in developing economies. Their results indicate that public procurement may be used to infuse targeted sectors of domestic economies with new revenue streams, though this may not be sufficient for generating sustainable, long-term growth.