Acta Oeconomica Pragensia 2014, 22(6):35-50 | DOI: 10.18267/j.aop.457

Fines for Administrative Offences in Public Procurement: An Econometric Model

Martin Schmidt
Masarykova univerzita v Brně, Ekonomicko-správní fakulta (e-mail: m.schmidt@email.cz).

This paper examines the fines for administrative offences in public procurement to consider whether their extent can be explained using an econometric approach. These fines, in the Czech Republic, are imposed by the Office for the Protection of Competition. The Public Procurement Act specifies only the maximal level of the fine, however, its actual value depends on the discretion of the Office. This paper analyses the decisions of the Office since 2010 and using multiple linear regression tries to explain the amount of fines. The study examines the significance of parameters such as the size of the contracting authority, the type of award procedure, the number of administrative offences and their nature or the value of the procurement. Moreover, the study identifies which of the parameters are the best to estimate the fines and what accuracy this model achieves.

Keywords: public procurement, award procedure, fine, administrative offence
JEL classification: D73, H57

Published: October 1, 2014  Show citation

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Schmidt, M. (2014). Fines for Administrative Offences in Public Procurement: An Econometric Model. Acta Oeconomica Pragensia, 22(6), 35-50. doi: 10.18267/j.aop.457
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