Essays on Public Policy Evaluation: The Case of Spain's Supplier Payment Plan

Abstract

The 2008-14 economic crisis significantly worsened Spain's public finances, leading to increased budget deficits and public debt, as well as longer payment periods to vendors. As a result, unpaid invoices by subnational governments peaked in December 2011 at €28.5 billion (2.7% of GDP). In response, the central government launched the Supplier Payment Plan (SPP) in 2012 to address these overdue payments. This dissertation evaluates the SPP, focusing on the causes of government arrears, the impact of delayed payments on corporations and procurement, and the role of politicians’ incentives in bailout agreements.