Work detail

Political connections, public procurement and small-scale expenditures

Author: Bc. Tomáš Vitvar
Year: 2020 - summer
Leaders: PhDr. Miroslav Palanský M.A., Ph.D.
Work type: Bachelors
Language: English
Pages: 56
Awards and prizes:
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


Česká Spořitelna


Patria Finance