Are governments locally biased when buying goods and services? Can this home bias explain the low integration of procurement markets? Using one million procurement contracts awarded in France and Spain, this paper explores whether the home bias follows the government's geographical scope:...

This paper provides a framework to study how different allocation systems of public procurement contracts affect firm dynamics and long-run macroeconomic outcomes. It builds a novel panel dataset for Spain that merges public procurement data, credit register loan data, and quasi-census...