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There is a growing concern in the field of public administration regarding cost overruns, which are often perceived to be a sign of project failure. Past studies have identified potential causes and explanatory factors for the occurrence of cost deviations. This article expands the existing body of knowledge by explicitly considering exogenous determinants (political, governance, and economic) to analyze how public management affects cost deviations and overruns. The article provides an empirical analysis of 4,305 projects developed in Portugal from 1980 to 2014. The study found that electoral periods; institutional, legal, and regulatory frameworks; and economic cycles all influence cost overruns.

Public management and cost overruns in public projects