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The impact of using an external authority on the quality of public procurement

Identifikátory výsledku

  • Kód výsledku v IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10324838" target="_blank" >RIV/00216208:11230/16:10324838 - isvavai.cz</a>

  • Výsledek na webu

  • DOI - Digital Object Identifier

Alternativní jazyky

  • Jazyk výsledku

    angličtina

  • Název v původním jazyce

    The impact of using an external authority on the quality of public procurement

  • Popis výsledku v původním jazyce

    The article deals with the empirical verification part of the hypothesis of "bureaucratic safety" applied to the example of public procurement in the years 2010- 2014. We presume that the contracting authorities are trying to minimize the risk of conflict and therefore are entrusting the administration of contracts to external authorities, or perhaps it is their view that these external authorities would administer them in a higher quality fashion. For the purposes of this article, we consider quality to be represented as the odds ratio that the Office for Protection of Competition will conclude that a public contract was managed improperly. The aim of this article is to compare in-house and external administration of public contracts in terms of the probability of an appeal, the initiation of an investigation, and the finding of any violations by the Office for Protection of Competition. For the purposes of our analysis, we used data on 69,959 public contracts, which we paired with 1965 first instance decisions of the Office for the Protection of Competition. We then applied logistic regression to this data. The achieved results are very surprising because we were unable to demonstrate a statistically significant difference between in-house and external administration, which should affect the decisions of the Office for the Protection of Competition. The results are very challenging for public policy since the current size of the procurement market is around 577 billion CZK. Additionally, the amount of transaction costs associated with procurement is very important. Each partial streamlining of public procurement can bring significant savings of public funds.

  • Název v anglickém jazyce

    The impact of using an external authority on the quality of public procurement

  • Popis výsledku anglicky

    The article deals with the empirical verification part of the hypothesis of "bureaucratic safety" applied to the example of public procurement in the years 2010- 2014. We presume that the contracting authorities are trying to minimize the risk of conflict and therefore are entrusting the administration of contracts to external authorities, or perhaps it is their view that these external authorities would administer them in a higher quality fashion. For the purposes of this article, we consider quality to be represented as the odds ratio that the Office for Protection of Competition will conclude that a public contract was managed improperly. The aim of this article is to compare in-house and external administration of public contracts in terms of the probability of an appeal, the initiation of an investigation, and the finding of any violations by the Office for Protection of Competition. For the purposes of our analysis, we used data on 69,959 public contracts, which we paired with 1965 first instance decisions of the Office for the Protection of Competition. We then applied logistic regression to this data. The achieved results are very surprising because we were unable to demonstrate a statistically significant difference between in-house and external administration, which should affect the decisions of the Office for the Protection of Competition. The results are very challenging for public policy since the current size of the procurement market is around 577 billion CZK. Additionally, the amount of transaction costs associated with procurement is very important. Each partial streamlining of public procurement can bring significant savings of public funds.

Klasifikace

  • Druh

    D - Stať ve sborníku

  • CEP obor

    AE - Řízení, správa a administrativa

  • OECD FORD obor

Návaznosti výsledku

  • Projekt

  • Návaznosti

    I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Ostatní

  • Rok uplatnění

    2016

  • Kód důvěrnosti údajů

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Údaje specifické pro druh výsledku

  • Název statě ve sborníku

    European Financial Systems 2016: Proceedings of the 13th International Scientific Cconference

  • ISBN

    978-80-210-8308-0

  • ISSN

  • e-ISSN

  • Počet stran výsledku

    7

  • Strana od-do

    602-608

  • Název nakladatele

    Masaryk University

  • Místo vydání

    Brno

  • Místo konání akce

    Brno

  • Datum konání akce

    27. 6. 2016

  • Typ akce podle státní příslušnosti

    EUR - Evropská akce

  • Kód UT WoS článku

    000385692200080