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Corruption manual for beginners - "Corruption techniques" in public procurement with examples from Hungary

Author

Listed:
  • Mihaly Fazekas

    (University of Cambridge Faculty of Politics, Psychology, Sociology)

  • Istvan Janos Toth

    (Centre for Economic and Regional Studies Hungarian Academy of Sciences)

  • Lawrence Peter King

    (Department of Sociology University of Cambridge)

Abstract

This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the proposed indicators are demonstrated using micro-level public procurement data from Hungary in 2009-2012. While the prime value of this broad set of indicators is the possibility of combining them into a robust composite indicator of high-level corruption, the high degree of detail also reveals that many regulatory interventions have succeeded in changing the form of corruption, but not its overall incidence.

Suggested Citation

  • Mihaly Fazekas & Istvan Janos Toth & Lawrence Peter King, 2013. "Corruption manual for beginners - "Corruption techniques" in public procurement with examples from Hungary," CERS-IE WORKING PAPERS 1339, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:1339
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    References listed on IDEAS

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    4. Coviello, Decio & Gagliarducci, Stefano, 2010. "Building Political Collusion: Evidence from Procurement Auctions," IZA Discussion Papers 4939, Institute of Labor Economics (IZA).
    5. Oriana Bandiera & Andrea Prat & Tommaso Valletti, 2009. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," American Economic Review, American Economic Association, vol. 99(4), pages 1278-1308, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public procurement; grand corruption; corruption technique; corruption indicators; micro data analysis;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • 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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