The Expediting Effect of Monitoring on Infrastructural Works. A Regression-Discontinuity Approach with Multiple Assignment Variables

TL;DR

This study uses a regression-discontinuity approach with multiple assignment variables to show that monitoring by regional governments accelerates infrastructure delivery in local public works in Italy.

Contribution

It introduces a novel regression-discontinuity methodology with multiple assignment variables to causally assess monitoring effects on infrastructure delivery.

Findings

Monitoring expedites infrastructure completion

Regression-discontinuity with multiple variables is effective

Monitoring has a significant causal impact

Abstract

Decentralised government levels are often entrusted with the management of public works and required to ensure well-timed infrastructure delivery to their communities. We investigate whether monitoring the activity of local procuring authorities during the execution phase of the works they manage may expedite the infrastructure delivery process. Focussing on an Italian regional law which imposes monitoring by the regional government on "strategic" works carried out by local buyers, we draw causal claims using a regression-discontinuity approach, made unusual by the presence of multiple assignment variables. Estimation is performed through discrete-time survival analysis techniques. Results show that monitoring does expedite infrastructure delivery.