A think-tank IDEA of the CERGE-EI (a joint research center of the Charles University and the Czech Academy of Sciences) published our summary on the effects of political donations on the public procurement market in the Czech regions.
Our results show that an additional donation of 1 EUR is linked to additional procurement contracts in the value of 100 EUR in the following year. This may suggest a large misallocation of public funds that account for about 14.4% of Czech GDP. As shown in our recent CESifo Working Paper, this appears to be associated with a lower efficiency of public sector.
Links
- The study in Czech is available here https://idea.cerge-ei.cz/files/IDEA_Studie_10_2019_Dary_politickym_stranam/IDEA_Studie_10_2019_Dary_politickym_stranam.html.
- A summary in Ceska televize (the Czech broadcasting company) is avaiable here https://ct24.ceskatelevize.cz/veda/2919164-daruj-korunu-ziskas-stokorunu-na-zakazce-podporit-vladni-strany-v-cesku-se-vyplacelo .