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Regional-local dimension of Russia's fiscal equalization

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Author Info
Martinez-Vazquez, Jorge
Timofeev, Andrey

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Abstract

National equalization policies often are concerned with the quality and accessibility of services delivered at the lowest (or local) level of government. When these policies are implemented in a hierarchical fashion through the intermediate level governments, the central government pursuing equalization goals needs to take into account possible offsetting effects originating in regional or provincial government policies. In this paper, we examine recent fiscal equalization outcomes for about 2000 Russian local governments to assess and explain the extent of equalization differences between and within regions. In particular, we examine the claim that intraregional policies should be blamed for rising disparities in local fiscal outcomes despite Russia's federal government efforts to equalize sub-national government finances. Regional policies improve equalization outcomes, but the degree of equalization effort varies greatly across the regions as a result of political and socio-economic factors, partially identified in this study. Journal of Comparative Economics 36 (1) (2008) 157-176.

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Publisher Info
Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 36 (2008)
Issue (Month): 1 (March)
Pages: 157-176
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Handle: RePEc:eee:jcecon:v:36:y:2008:i:1:p:157-176

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bert Hofman & Susana Cordeira Guerra, 2004. "Ensuring Inter-regional Equity and Poverty Reduction," International Studies Program Working Paper Series, at AYSPS, GSU paper0411, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  2. Zhuravskaya, Ekaterina V., 2000. "Incentives to provide local public goods: fiscal federalism, Russian style," Journal of Public Economics, Elsevier, vol. 76(3), pages 337-368, June. [Downloadable!] (restricted)
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  3. Kitty Stewart, 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Innocenti Occasional Papers, Economic Policy Series iopeps97/7, UNICEF Innocenti Research Centre. [Downloadable!]
  4. Stewart, K., 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Economics Working Papers eco97/22, European University Institute.
  5. Le Grand, Julian, 1975. "Fiscal Equity and Central Government Grants to Local Authorities," Economic Journal, Royal Economic Society, vol. 85(339), pages 531-47, September. [Downloadable!] (restricted)
  6. Alexeev, Michael & Kurlyandskaya, Galina, 2003. "Fiscal federalism and incentives in a Russian region," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 20-33, March. [Downloadable!] (restricted)
  7. Baoyun Qiao & Jorge Martinez-Vazquez & Yongsheng Xu, 2002. "Growth and Equity Tradeoff in Decentralization Policy: China's Experience," International Studies Program Working Paper Series, at AYSPS, GSU paper0216, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  8. Gauri, Varun, 2004. "Social Rights and Economics: Claims to Health Care and Education in Developing Countries," World Development, Elsevier, vol. 32(3), pages 465-477, March. [Downloadable!] (restricted)
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  9. Desai, Raj M. & Freinkman, Lev & Goldberg, Itzhak, 2005. "Fiscal federalism in rentier regions: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 814-834, December. [Downloadable!] (restricted)
  10. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November. [Downloadable!] (restricted)
  11. Prud'homme, Remy, 1995. "The Dangers of Decentralization," World Bank Research Observer, Oxford University Press, vol. 10(2), pages 201-20, August.
  12. Freinkman, Lev & Plekhanov, Alexander, 2005. "What determines the extent of fiscal decentralization ? The Russian paradox," Policy Research Working Paper Series 3710, The World Bank. [Downloadable!]
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  1. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Studies Program Working Paper Series, at AYSPS, GSU paper0705, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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