"When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science, whatever the matter may be."
Lord Kelvin

Research Notes

The intensity of competition, corruption risks, and the winner companies

5 July 2018

Istvan Janos Toth – Miklos Hajdu: The Intensity of competition, corruption risks, and the winner companies.  Analysis of public procurement of a European capital 2011-2016. CRCB, Budapest, July 5, 2018.

The paper in Hungarian  (pdf)

Database in Stata format (dta)

Stata do file read more

Bangladesh, Zambia and Hungary. Data publication practice of the Hungarian Public Procurement Authority

19 February 2018

In this research note we briefly analyse the data publication standard used by the Hungarian Public Procurement Authority regarding its official website. We compare the Hungarian protocol with the case of Zambia and Bangladesh concerning the accessibility of contract award notices. This type of document contains the most important information on public tenders. These pieces of information (the number of bidders, the contract value, the estimated value, the issuer name, the winner name) are read more

How does the Kleptocratic State Work in Hungary?

István János Tóth – Miklós Hajdu: How does the Kleptocratic State Work in Hungary? A research note based on Hungarian public procurement data. CRCB, Budapest, January 2018.

26 January  2018

In this research note, we use the public procurement database built by CRCB, which contains data from more than 200,000 public tenders from 1997 to 2017. The analysis is based on data from 126,330 public procurement contracts from 2010 to 2016. The focus of the analysis is public tenders (without framework agreements) won by companies related to cronies and read more

Public tenders of Hungarian hospitals on the standard dissection table of the economic analysis

24 January 2018

István János Tóth – Miklós Hajdu: Public tenders of Hungarian hospitals on the standard dissection table of the economic analysis. Analysis of intensity of competition, corruption risks and price distortion of Hungarian public procurement. Budapest: CRCB, January, 2018.

Abstract

In the following short paper, we analyse the contracts of a Hungarian EU-funded programme (KEOP – 5.6.0/E/15) involved in an ongoing investigation of the Hungarian Competition Authority (HCA). The investigation was started for suspect of collusion and among the suspects involved are both Hungarian owned firms and read more

Brief analysis on the cronyism in Hungary

24 December 2017

Before the issuers publish their calls for tenders, they have to calculate the estimated price of the procurement. This calculation can be based on their experience from previous tenders and on the results of market research.  The price drop between the estimated value and the actual contract price can be regarded as a proxy for measure the intensity of competition. The higher competition between the bidders will result in more intense price competition what should lead to lower read more

Competitive intensity and family business

30 May 2017

In these short papers we analyse the effect of friendship and family ties with the Hungarian Prime Minister (Viktor Orban) on the competitive intensity of public tenders won by companies owned by his close friends and family members. The analysis is based on more than 151,000 Hungarian public procurement tenders in the period of 2009-2016. Using OLS and ordered logit estimations, we estimate the effect of the friendship and family ties on the competitive intensity of tenders. The results point out read more

The detection of overpricing at EU funded public procurement in Hungary

7 September 2016

The analysis of first digits of contract prices indicates that the contract prices of all Hungarian public procurement fits into the theoretical distribution for the whole period. But there are crucial differences in price distortion among the contract prices in each year. Price distortion was increasing throughout the whole period; while in 2009 and 2010 contract prices fitted well into the theoretical distribution, after those years the ratio of price distortion got more and read more

Competitive Intensity and Corruption Risks in the Hungarian Public Procurement 2009-2015

20 August 2016
István János Tóth – Miklós Hajdu. 2016. Competitive Intensity and Corruption Risks in the Hungarian Public Procurement 2009-2015. CRCB Short Papers/2016:1

This short paper examines data from Hungarian public procurement in the period 2009-15. The data from 127,776 contracts were used for the analysis. The analysis focuses on information regarding the competitive intensity, price distortion, and corruption risks. We also analyze the performance of EU funded projects from these read more

Rent Extraction and the Rule of Law. The Case of Hungarian Residence Bonds’ Law

 

This research note examines the history and background of the Hungarian Residence Bonds’ Law. We conclude that the residence bond legislation is an example of the violation of the rule of law, of its connection with rent-seeking, and of possible appearance of political corruption. This case is a clear manifestation of what form, what special means, and what consequences political favoritism can have and can operate with in a given read more

No public procurement corruption in Hungary? Analysis of the decisions of the Hungarian Courts 2009-2014

 

This research note examines court orders issued in and after 2009 in Hungary. The aim of the analysis was to identify crimes related to corruption in public procurements in order to inspect the validity of the CRCB’s composite corruption risks indicator. A court order was examined if it met the following criteria: it was issued in 2009 or later, it was about corruption related crimes and it contained the word “közbeszerzés” (“public procurement”), “pályázat” (“tender”) or “tender” read more