The first version of the second chapter of my PhD thesis on “Political donations, public procurement and government efficiency” (with Kristof De Witte and Benny Geys) is out as CESifo WP nr. 7591.
My first academic article (together with Benny Geys) has been published at European Economic Review (https://doi.org/10.1016/j.euroecorev.2018.11.004). A short less technical summary can be found on VoxEU (in English) and Roklen24 (in Czech).
In this article, we study whether and when donating to a political party induces favouritism in the allocation of procurement contracts. We find that firms increasing donationg to the party in power by $1 receive on average contracts in the value of $100 more in the year following the donation. Moreover, we show that contracting authorities tend to engage in various forms of strategic behaviour to favour donating firms such as lowering competition and manipulation around threshold between lower and higher discretion.