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Estimation of Costs in the Russian Public Procurement System: A Case Study of Voronezh State University

Listed author(s):
  • Olga N. Balaeva


    (National Research University Higher School of Economics)

  • Andrei A. Yakovlev


    (National Research University Higher School of Economics)

Registered author(s):

    The growing attention of governments, international organizations and NGOs to public procurement issues over the last two decades has been accompanied by many studies of the efficiency of public procurement. However, few researchers have considered the costs of procurement regulation for public customers and private suppliers. This problem is especially acute for the public procurement system in Russia. In this paper, taking into account recent PricewaterhouseCoopers (PwC) report for European Commission, we propose an approach for measuring the procurement costs of public customers. We have tested this approach with data on a large Russian public customer — Voronezh State University (VSU). We show that the proposed approach is universal and can be applied at a micro—level by other public customers to measure the efficiency of their procurement and to optimize the costs. This approach can also be used as a basis for a larger inquiry into the costs and effectiveness of procurement at the level of regional authorities or ministries

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    Paper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 41/MAN/2015.

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    Length: 16 pages
    Date of creation: 2015
    Publication status: Published in WP BRP Series: Management / MAN, September 2015, pages 1-16
    Handle: RePEc:hig:wpaper:41man2015
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    1. Malcolm Rutherford, 2001. "Institutional Economics: Then and Now," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 173-194, Summer.
    2. Andrei Yakovlev & Olga Demidova, 2012. "Access of firms to public procurement in Russia in the 2000s: before and after radical reform of regulation," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 5(2), pages 140-157.
    3. Marian W. Moszoro & Pablo T. Spiller, 2012. "Third-Party Opportunism and the Nature of Public Contracts," NBER Working Papers 18636, National Bureau of Economic Research, Inc.
    4. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    5. Spiller, Pablo T., 2013. "Transaction cost regulation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 232-242.
    6. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    7. Buvik, Arnt, 2002. "Hybrid governance and governance performance in industrial purchasing relationships," Scandinavian Journal of Management, Elsevier, vol. 18(4), pages 567-587, December.
    8. Calogero Guccio & Giacomo Pignataro & Ilde Rizzo, 2014. "Evaluating the efficiency of public procurement contracts for cultural heritage conservation works in Italy," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 43-70, February.
    9. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    10. Costantino, N. & Dotoli, M. & Falagario, M. & Fanti, M. P. & Iacobellis, G., 2006. "Evaluating The Total Costs Of Purchasing Via Probabilistic And Fuzzy Reasoning," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), vol. 0(1), pages 69-92, May.
    11. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    12. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
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