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Table 1 Set of the variables chosen to describe the features of each contract from the source list of public contracts [24]. In parenthesis, a short explanation of the variables that are not self explanatory is given, providing the motivation for considering each particular variable

From: Practices of public procurement and the risk of corrupt behavior before and after the government transition in México

Type

Variable

Short name

Detail

i)

Buyer

N/A

Governments agency that made the contract with a private company (the supplier)

Supplier

N/A

Private company that was awarded a contract by a government agency (the buyer)a

Government Order

GO

Government agency (buyer) level

Dummy variables:

GO. APF - Federal level

GO.GE - State level

GO.GM - Municipal level

(This variable provides information regarding at which level of government the contract was assigned, as different orders have different operation rules regarding duration, thresholds, etc.; and different levels of scrutiny)

Procedure Character

PC

Legal framework in which the contract was made.

Dummy variables:

PC.N - National

PC.I - International

PC.ITLC - International under the North American Free Trade Agreement (NAFTA)

(This variable provides information of the legal framework under which the contract was assigned)

Contract Type

CT

Services or commodities contracted

Dummy variables:

CT.OP - Public work

CT.S - Services

CT-ADQ - Acquisitions

CT-AR - Leases

CT-SLAOP - Special public work

(This variable provides a rough description of the market sector of the contract, as again, different sectors might, in principle, have different regulations)

Procedure Type

PT

Procedure by which the supplier won the contract

Dummy variables:

PT.AD - Single-bidder

PT.LP - Open public contest

PT.I3P - Contest between only three suppliers

(Describes how the contract was assigned. We recall that, in principle, single-bidder contracts can be carried out only under ‘‘special” circumstances)

Size

S

Size of supplierb

Dummy variables:

S.MIC - Micro-supplier

S.PEQ - Small-supplier

S.MED - Medium-supplier

S.NOM - Large-supplier

S.NA - Supplier without assigned size

(This variable is a rough indicator of the size of the supplier, which can serve as a proxy of the capacity of the supplier to carry out the project, etc.)

Year

N/A

Year in which the contract began

Beginning week

N/A

Week of the year in which the contract began

(This variable intends to gauge whether the activity is correlated to the budget calendar)

Ending-Beginning weeks

EBWeeks

Weeks that the contract lasted

 

Spending

N/A

Amount of money spent by the buyer (in USD PPP)c

  1. aAs mentioned previously, the state-owned companies are exempt to report their activities as suppliers to other government agencies [38, 39].
  2. bThe Mexican Economic Secretariat proposed this size classification based on the amount of resources produced by the company and its number of employees [40].
  3. cSince most of the Spending is reported in Mexican currency (MXN), we converted the amounts to USD PPP using the equivalences given in [41].