Progress payments and cost overruns in defence contracts |
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| Authors: | Anthony G Heyes Catherine Liston‐Heyes |
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| Institution: | 1. Department of Economics, Birkbeck College , University of London , 13–15 Gresse Street, London;2. National Westminster School of Management, Royal Holloway and Bedford New College , University of London , Egham, Surrey |
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| Abstract: | In recent years military procurement agencies have used “progress payments” in contracting. Although, overall, the adoption of such a policy may well have contributed to a decrease in total costs of procurement, we identify a class of inefficiencies that are likely to have been generated by it. |
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| Keywords: | Procurement cost control contract design |
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