Rent-seeking in public procurement: evidence from the entry of political challengers at electoral thresholds
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F15%3A00450093" target="_blank" >RIV/67985998:_____/15:00450093 - isvavai.cz</a>
Result on the web
<a href="http://www.cerge-ei.cz/pdf/wp/Wp549.pdf" target="_blank" >http://www.cerge-ei.cz/pdf/wp/Wp549.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Rent-seeking in public procurement: evidence from the entry of political challengers at electoral thresholds
Original language description
This paper shows that political challengers affect rent-seeking in public procurement. I use data from municipal governments in the Czech Republic to construct new measures of political rent-seeking in procurement and test whether the entry of additionalchallengers into municipal legislatures affects the rent-seeking practices. Because the entry of challengers is endogenous to the performance of incumbents, I predict the challenger entry using quasi-random variation in the vote share of challengers near the threshold in proportional elections. I show that legislatures with additional challengers allocate fewer procurements to political donors, double price savings in procurement and use more competitive procurement auctions. The entry of extra challengers leads to greater economic benefits in legislatures with fewer political parties and in legislatures entered by local-level political movements. My findings highlight the role of local-level movements in enhancing political accountabi
Czech name
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Czech description
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Classification
Type
O - Miscellaneous
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
<a href="/en/project/TD020099" target="_blank" >TD020099: Empirical Models of Manipulations in Public Procurement: Evidence from the Czech Republic</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů