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Reflection of the Election Cycle in Public Procurement in Prague
[Zachycení volebního cyklu v zadávání veřejných zakázek v hlavním městě Praze]

Author

Listed:
  • Petra Drzková

Abstract

The aim of this paper is to reveal whether there is a relation between public procurement and the election cycle in Prague. The examined data cover the period from 2005 to 2011. Two hypotheses have been set in order to discover whether there is such a relation. The first one postulates that public procurement is used for construction, wellvisible investment, so as to increase the probability of being re-elected. The second hypothesis marks the effort of politicians to maximise their own benefits until the end of their electoral term as the main reason for contracting public procurement. The hypotheses are proven with the number of public procurement projects, the total amount of money spent on public procurement in a particular term, the average amount of bids and the relation between the final and expected price. Regression analysis was used as the tool for verification. The result is that it is possible to find such a relation dependence of supplies and services and the election cycle in Prague.

Suggested Citation

  • Petra Drzková, 2013. "Reflection of the Election Cycle in Public Procurement in Prague [Zachycení volebního cyklu v zadávání veřejných zakázek v hlavním městě Praze]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2013(4), pages 49-68.
  • Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:4:id:410:p:49-68
    DOI: 10.18267/j.aop.410
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    References listed on IDEAS

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    1. Alberto Alesina & Nouriel Roubini, 1992. "Political Cycles in OECD Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 663-688.
    2. Lucie Sedmihradská & Rudolf Kubík & Jakub Haas, 2011. "Political Business Cycle in Czech Municipalities," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(1), pages 59-70.
    3. William D. Nordhaus, 1989. "Alternative Approaches to the Political Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(2), pages 1-68.
    4. Rosenberg, Jacob, 1992. "Rationality and the Political Business Cycle: The Case of Local Government," Public Choice, Springer, vol. 73(1), pages 71-81, January.
    5. Schultz, Kenneth A., 1995. "The Politics of the Political Business Cycle," British Journal of Political Science, Cambridge University Press, vol. 25(1), pages 79-99, January.
    6. Blais, Andre & Nadeau, Richard, 1992. "The Electoral Budget Cycle," Public Choice, Springer, vol. 74(4), pages 389-403, December.
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    More about this item

    Keywords

    public procurement; election cycle; Prague; re-election; corruption; linear regression model;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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