Why measuring high-level corruption is tough — and this study might help.

Scholars and policymakers have long struggled with accurately gauging high-level corruption, despite some recent progress. This research introduces two novel objective indicators—single bidding in competitive markets—and a composite score of procurement 'red flags'—based on official government data from 2.8 million contracts across twenty-eight European countries between 2009 and 2014—to directly operationalize the concept that favors specific bidders without justification.

Data & Methods: Analyzing records from Europe-wide public tenders during a six-year period (2009-2014).

• Corruption Proxy #1: Single Bidding in Competitive Markets — Identifying contracts awarded via single bidding despite competition being available or expected.
• Corruption Proxy #2: Tender 'Red Flags' Composite Score — Systematically flagging indicators of potential corruption from tender documents and processes.

The findings demonstrate how these objective measures can capture country-level corruption trends while avoiding subjectivity. Using a news-style heading for clarity:

Key Findings & Validation:

• These indicators align well with established macro corruption assessments.
• They effectively identify micro-level instances of preferment without justification, providing strong empirical support.