Tools and approaches in public contracting research

What makes contracting in public organizations different from contracting in private organizations? This essay explores advances in research at the intersection of contract theory and behavioral political economics. The main challenges consist of identifying and measuring the trade-offs that arise due to the interaction of agents under public oversight and political competition. It highlights theoretical models that address accountability and public managers’ discretionary contractual choices, as well as empirical tools for causal inference in public-private contracting