Self-organization in Slovenian public spending

Private businesses are often entrusted with public contracts, wherein public money is allocated to a private company. This process raises concerns about transparency, even in the most developed democracies. But are there any regularities guiding this process? Do all private companies benefit equally...

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Main Authors: Jelena Joksimović, Matjaž Perc, Zoran Levnajić
Format: Article
Language:English
Published: The Royal Society 2023-08-01
Series:Royal Society Open Science
Subjects:
Online Access:https://royalsocietypublishing.org/doi/10.1098/rsos.221279
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author Jelena Joksimović
Matjaž Perc
Zoran Levnajić
author_facet Jelena Joksimović
Matjaž Perc
Zoran Levnajić
author_sort Jelena Joksimović
collection DOAJ
description Private businesses are often entrusted with public contracts, wherein public money is allocated to a private company. This process raises concerns about transparency, even in the most developed democracies. But are there any regularities guiding this process? Do all private companies benefit equally from the state budgets? Here, we tackle these questions focusing on the case of Slovenia, which keeps excellent records of this kind of public spending. We examine a dataset detailing every transfer of public money to the private sector from January 2003 to May 2020. During this time, Slovenia has conducted business with no less than 248 989 private companies. We find that the cumulative distribution of money received per company can be reasonably well explained by a power-law or lognormal fit. We also show evidence for the first-mover advantage, and determine that companies receive new funding in a way that is roughly linear over time. These results indicate that, despite all human factors involved, Slovenian public spending is at least to some extent regulated by emergent self-organizing principles.
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spelling doaj.art-e0f81273083949d2ab3f649e993859da2023-08-02T07:05:18ZengThe Royal SocietyRoyal Society Open Science2054-57032023-08-0110810.1098/rsos.221279Self-organization in Slovenian public spendingJelena Joksimović0Matjaž Perc1Zoran Levnajić2Faculty of Information Sciences in Novo Mesto, Ljubljanska cesta 31A, Novo Mesto 8000, SloveniaFaculty of Natural Sciences and Mathematics, University of Maribor, Koroška cesta 160, Maribor 2000, SloveniaFaculty of Information Sciences in Novo Mesto, Ljubljanska cesta 31A, Novo Mesto 8000, SloveniaPrivate businesses are often entrusted with public contracts, wherein public money is allocated to a private company. This process raises concerns about transparency, even in the most developed democracies. But are there any regularities guiding this process? Do all private companies benefit equally from the state budgets? Here, we tackle these questions focusing on the case of Slovenia, which keeps excellent records of this kind of public spending. We examine a dataset detailing every transfer of public money to the private sector from January 2003 to May 2020. During this time, Slovenia has conducted business with no less than 248 989 private companies. We find that the cumulative distribution of money received per company can be reasonably well explained by a power-law or lognormal fit. We also show evidence for the first-mover advantage, and determine that companies receive new funding in a way that is roughly linear over time. These results indicate that, despite all human factors involved, Slovenian public spending is at least to some extent regulated by emergent self-organizing principles.https://royalsocietypublishing.org/doi/10.1098/rsos.221279corruptionpublic spendingSloveniaself-organizationpower lawpreferential attachment
spellingShingle Jelena Joksimović
Matjaž Perc
Zoran Levnajić
Self-organization in Slovenian public spending
Royal Society Open Science
corruption
public spending
Slovenia
self-organization
power law
preferential attachment
title Self-organization in Slovenian public spending
title_full Self-organization in Slovenian public spending
title_fullStr Self-organization in Slovenian public spending
title_full_unstemmed Self-organization in Slovenian public spending
title_short Self-organization in Slovenian public spending
title_sort self organization in slovenian public spending
topic corruption
public spending
Slovenia
self-organization
power law
preferential attachment
url https://royalsocietypublishing.org/doi/10.1098/rsos.221279
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AT matjazperc selforganizationinslovenianpublicspending
AT zoranlevnajic selforganizationinslovenianpublicspending