Corruption, Centralization and Competition: Evidence from Russian Public Procurement
This paper estimates the impact of corruption on the incentives of procurers to maintain honest competition in tenders. Customers, who procure for themselves, and Agencies, who procure for the customers in their region are considered. Basing on a large dataset of open auctions conducted by Russian regional-level authorities in 2011, the analysis shows that in highly corrupt regions, Agencies fail to arrange competitive tenders and most of auctions have one bidder. Customers attract more bidders for large contracts, but rebates are usually low. Therefore, procurement centralization may reduce the corruption of Customers, but cannot solve the problem of low competition.
The author offers an analysis of the Russian market theses services.
This is the first paper on consumer search where the cost of going back to stores already searched is explicitly taken into account. We show that the optimal sequential search rule under costly second visits is very different from the traditional reservation price rule in that it is nonstationary and not independent of previously sampled prices. We explore the implications of costly second visits on market equilibrium in two celebrated search models. In the Wolinsky model some consumers search beyond the first firm and in this class of models costly second visits do make a substantive difference: equilibrium prices under costly second visits can both be higher and lower than their perfect recall analogues. In the oligopoly search model of Stahl where consumers do not search beyond the first firm, there remains a unique symmetric equilibrium that has firms use pricing strategies that are identical to the perfect recall case.
In this study, for the first time in Russian practice from a large amount of empirical data on state contracts for procurement of goods, works and services, made a major budgetary organization during 2008-2010., Examines factors affecting the decline in trading, delays in supplies, as well as problems in the performance of obligations under the contracts. The analysis showed that a reduction prices at the auctions directly dependent on the number of applications accepted for review by the competitive commissions. Falling prices are more frequent in the procurement of goods and experimental trust (compared to the benefits of the inspection), as well as a state contract for works. However, the prices are much less likely to have been lowered in auctions (compared to purchasing through quotations and tenders). Delays in supplies occurred in 27% of patients and were more frequent in the procurement of experimental benefits, and were characterized for major purchases and state contracts executed during the I-III quarters of the year. More serious problems in the performance of obligations, full fraught with supply disruptions, have characterized the state contracts, culminating in the IV quarter. The overall risk supply disruptions were reported only 5% of purchases at competitive procedures, but on the contracts accounted for nearly half of all purchases of the budget organization in 2008-2010. Based on the analysis in the formulation of recommendations to improve the system of public procurement.
The deepening rift between the system's potential and the challenges of rapidly changing socio-economic conditions make the transformation of Russia's state apparatus a matter of the nearest future; while, barring a radical overhaul, its preservation until 2025 is virtually impossible. Two major trends and resulting changes in administrative organization will determine Russia's political development processes in the coming years: reformatting relations between the authorities and society and reconfiguring arrangements between the federal center and regions. The center-regions relations dynamics is analyzed in terms of long pendulum oscillations with pendulum moving now from the model of 'federation of corporations' to the model of 'federation of regions'.
This paper examines determinants of corruption across Russian regions. Key contributions include: (i) a formal study of economic corruption determinants across Russian regions; (ii) comparisons of determinants of perceived corruption versus those of actual corruption; and (iii) studying the influence of market competition and other factors on corruption. The re-sults show that economic prosperity, population, market competition and urbanization are significant determinants of Russian corruption. The use of alternative corruption measures reveals that economic prosperity and population have a largely similar impact on corrup-tion perceptions and corruption incidence. However, there are significant differences in the effects of competition and urbanization.
This study analyzes the effects of reducing trade barriers in the context of the objectives of competition policy. Separate chapters are devoted to the assessment of the height of Russian trade barriers, the analysis of the impact of international trade on domestic prices and concentration of production.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.
We address the external effects on public sector efficiency measures acquired using Data Envelopment Analysis. We use the health care system in Russian regions in 2011 to evaluate modern approaches to accounting for external effects. We propose a promising method of correcting DEA efficiency measures. Despite the multiple advantages DEA offers, the usage of this approach carries with it a number of methodological difficulties. Accounting for multiple factors of efficiency calls for more complex methods, among which the most promising are DMU clustering and calculating local production possibility frontiers. Using regression models for estimate correction requires further study due to possible systematic errors during estimation. A mixture of data correction and DMU clustering together with multi-stage DEA seems most promising at the moment. Analyzing several stages of transforming society’s resources into social welfare will allow for picking out the weak points in a state agency’s work.