Public Procurements as a Corrupting Sector in RBC Model
| Thesis title in Czech: | Veřejné zakázky jako korupční sektor v RBC modelu |
|---|---|
| Thesis title in English: | Public Procurements as a Corrupting Sector in RBC Model |
| Key words: | public procurements, corruption, state capture |
| English key words: | public procurements, corruption, state capture |
| Academic year of topic announcement: | 2010/2011 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 10.06.2011 |
| Date of assignment: | 10.06.2011 |
| Date and time of defence: | 28.06.2012 00:00 |
| Venue of defence: | Opetalova ul. 26 |
| Date of electronic submission: | 17.05.2012 |
| Date of proceeded defence: | 28.06.2012 |
| Opponents: | doc. PhDr. Martin Gregor, Ph.D. |
| Guidelines |
| At first the corruption phenomenon will be examined from the point of view of the macroeconomics. This first part will include macroeconomic literature survey examining the corruption theoretically and that is trying to incorporate corruption in the modelling of the government sector. The second part will describe the known state of corruption in the public provisions in the Czech Republic based on the academic but also non-government institutions studies. In this part will be examined the first hypothesis about political parties financing. According to the previous findings, the corruption sector will be described and established. Then the third part will try to construct a model of the economy with the private, government and also the corruption sector. The model will be calibrated on the Czech data and the hypothesis about crowding out of the private sector will be tested. The hypothesis about deteriorating of the governmental functions will be examined in the parts two and three. The thesis will also work with political science literature to help theoretically establishing the corruption sector.
Hypotheses: 1. Political parties uses corruption in the public procurement for their financing 2. The corruption sector is crowding out the private sector 3. The corruption sector is deteriorating the functions of the government sector Outline: 1. The corruption from the point of view of macroeconomics 2. The Corruption sector a. Corruption in public provisions – Evidence from the Czech Republic b. Establishing the corruption sector 3. Model the economy with the corruption sector a. Construction of the model b. Calibrating c. Discussion and implication of the model |
| References |
| 1. LUI, Francis T. (1986): Dynamic Model of Corruption Deterrence, Journal of Public Economics 31(2): pp. 215-236.
2. Dreher, A. & Schneider, F. (2010): Corruption and the Shadow Economy: an Empirical Analysis, Public Choice 144(1-2): pp. 215–238 3. Johnson, S. & Kaufmann, D. & Shleifer, A. (1997): The Unofficial Economy in Transition, Brookings Papers on Economic Activity 2: 159–221 4. Choi, Jay, P. & Thum, M.: Corruption and the Shadow Economy, International Economic Review 46(3), pp. 817-836 5. Fleming, Matthew, H. & Roman, J. & Farrell G. (2000): The Shadow Economy, Journal of International Affairs 53(2), pp. 387-409 6. Transparency International - Česká republika (2009): Zakázky malého rozsahu v České republice 7. Pavel, J. (2010): The Analysis of Relationship Between the Rate of Competition and the Prices of Large Transport Infrastructure Buildings, Politická ekonomie : teorie modelování, aplikace 58(3): 343-356 8. Pavel, J. (2009): Veřejné zakázky v České republice, Národohospodářský ústav Josefa Hlávky, Prague ISBN:9788086729473 |
| Preliminary scope of work |
| Economists usually examine the corruption with the relation to the shadow economy. The shadow economy stands for activities that are outside the official government or private sector. The corruption refers to the situation when firms try through bribes to get advantages on the official sector or in the shadow economy. In this view the corruption is illegal but refers to activities either in the shadow economy or in the official economy. The thesis will examine corruption from the macroeconomics point of view based on the evidence from the Czech Republic. The thesis will focus only on the corruption in the public provisions and regard it as a separate economic sector that is different from the classical government and public sector. The reason is that the new “corruption sector” has different rules of game than private sector (for example lack of competition, collusions etc.) and also deteriorates essential functions of the government sector (for example violation of redistributive function due to the inefficient management of public funds). The corruption sector will be also viewed as a source of financing of political parties that have positive incentive to develop the sector. The thesis will try to construct a macroeconomic model including the corruption sector based on the evidence of the corruption in the public provisions in the Czech Republic. |
| Preliminary scope of work in English |
| Economists usually examine the corruption with the relation to the shadow economy. The shadow economy stands for activities that are outside the official government or private sector. The corruption refers to the situation when firms try through bribes to get advantages on the official sector or in the shadow economy. In this view the corruption is illegal but refers to activities either in the shadow economy or in the official economy. The thesis will examine corruption from the macroeconomics point of view based on the evidence from the Czech Republic. The thesis will focus only on the corruption in the public provisions and regard it as a separate economic sector that is different from the classical government and public sector. The reason is that the new “corruption sector” has different rules of game than private sector (for example lack of competition, collusions etc.) and also deteriorates essential functions of the government sector (for example violation of redistributive function due to the inefficient management of public funds). The corruption sector will be also viewed as a source of financing of political parties that have positive incentive to develop the sector. The thesis will try to construct a macroeconomic model including the corruption sector based on the evidence of the corruption in the public provisions in the Czech Republic. |