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Fines for Administrative Offences in Public Procurement: An Econometric Model
[Pokuty za správní delikty ve veřejných zakázkách: ekonometrický model]

Author

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  • Martin Schmidt

Abstract

This paper examines the fines for administrative offences in public procurement to consider whether their extent can be explained using an econometric approach. These fines, in the Czech Republic, are imposed by the Office for the Protection of Competition. The Public Procurement Act specifies only the maximal level of the fine, however, its actual value depends on the discretion of the Office. This paper analyses the decisions of the Office since 2010 and using multiple linear regression tries to explain the amount of fines. The study examines the significance of parameters such as the size of the contracting authority, the type of award procedure, the number of administrative offences and their nature or the value of the procurement. Moreover, the study identifies which of the parameters are the best to estimate the fines and what accuracy this model achieves.

Suggested Citation

  • Martin Schmidt, 2014. "Fines for Administrative Offences in Public Procurement: An Econometric Model [Pokuty za správní delikty ve veřejných zakázkách: ekonometrický model]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(6), pages 35-50.
    • Handle: RePEc:prg:jnlaop:v:2014:y:2014:i:6:id:457:p:35-50
    DOI: 10.18267/j.aop.457
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    References listed on IDEAS

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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
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    3. Bose, Pinaki, 1995. "Regulatory errors, optimal fines and the level of compliance," Journal of Public Economics, Elsevier, vol. 56(3), pages 475-484, March.
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    5. James Andreoni, 1991. "Reasonable Doubt and the Optimal Magnitude of Fines: Should the Penalty Fit the Crime?," RAND Journal of Economics, The RAND Corporation, vol. 22(3), pages 385-395, Autumn.
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    Keywords

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    JEL classification:

    • 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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