| Abstract: |
Abstract In this thesis, I introduce a new approach of estimating financial flows from government organisations towards its suppliers of goods and services. It is based on accounting data collected by a Ministry of Finance of the Czech Republic and unlike other available data sources offers an opportunity to study all transactions, including small-scale expenditures. Using this approach, I study the effect of an outcome of 2018 elections on the structure of municipality’s suppliers. Interestingly, I find that one year after the elections there is no significant difference between municipalities with different election results. This suggests that there is either no rent-seeking activity at all, or that it takes a different form than a selection of suppliers. Also, while conducting this analysis, I quantify a link between a winning party and an affiliation of a mayor and show how it increases in municipalities where there is a dominance of one political party. Keywords political connections, public procurement, corruption, politics, government expenditures, municipality, local government, election JEL Classification D72, H72, K40 |
