Public Procurement: A Panel Data Approach

Public procurement is subject of many scientific analyses. Some of the analyses use econometrics methods on the public procurement data. Available dataset provides mainly cross-section data, therefore most of the analyses works with basic econometrics methods. This paper describes data sources about public procurement in the Czech Republic, shows how to transform available dataset into panel data and what methods could be used for the analyses of the newly created datasets. The use of error components models is suggested, it is shown which type of panel data transformation is suitable for which model (one-way or two-way error components model) and the potential strengths and weaknesses of panel data approach to public procurement are identified. The suggestion for the future research is to try out proposed panel data approach on available public procurement data.