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Regional-local dimension of Russia's fiscal equalization

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  • Martinez-Vazquez, Jorge
  • Timofeev, Andrey

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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Bibliographic 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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Web page: http://www.elsevier.com/locate/inca/622864

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References

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  1. Bert Hofman & Susana Cordeira Guerra, 2004. "Ensuring Inter-regional Equity and Poverty Reduction," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0411, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. 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.
  3. Baoyun Qiao & Jorge Martinez-Vazquez & Yongsheng Xu, 2002. "Growth and Equity Tradeoff in Decentralization Policy: China's Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0216, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. Stewart, K., 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Economics Working Papers eco97/22, European University Institute.
  5. Zhuravskaya Ekatherina, 2000. "Incentives to Provide Local Public Goods: Fiscal Federalism, Russian Style," EERC Working Paper Series 99-15e, EERC Research Network, Russia and CIS.
  6. 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.
  7. Freinkman, Lev & Plekhanov, Alexander, 2005. "What determines the extent of fiscal decentralization ? The Russian paradox," Policy Research Working Paper Series 3710, The World Bank.
  8. 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.
  9. 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.
  10. Bahl, Roy W. & Wallich, Christine, 1992. "Intergovernmental fiscal relations in China," Policy Research Working Paper Series 863, The World Bank.
  11. Prud'homme, Remy, 1995. "The Dangers of Decentralization," World Bank Research Observer, World Bank Group, vol. 10(2), pages 201-20, August.
  12. Kitty Stewart, 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Innocenti Occasional Papers, Economic Policy Series iopeps97/7, UNICEF Innocenti Research Centre.
  13. Jorge Martinez-Vazquez & Andrey Timofeev & Jameson Boex, 2006. "Reforming Regional-Local Finance in Russia," World Bank Publications, The World Bank, number 6925, October.
  14. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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Cited by:
  1. Masayoshi Hayashi, 2013. "On the Decomposition of Regional Stabilization and Redistribution," CIRJE F-Series CIRJE-F-910, CIRJE, Faculty of Economics, University of Tokyo.
  2. Jorge Martinez-Vazquez & Andrey Timofeev, 2010. "The Long and Winding Road to Local Fiscal Equity in the United States: A Fifty Year Retrospective," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1027, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0705, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
  5. Lev Freinkman & Konstantin A. Kholodilin & Ulrich Thie├čen, 2009. "Incentive Effects of Fiscal Equalization: Has Russian Style Improved?," Discussion Papers of DIW Berlin 912, DIW Berlin, German Institute for Economic Research.
  6. Irina N. Ilina & Carol S. Leonard & Evgenij E. Plisetskij, 2014. "Russian Regional Resilience: Finance, Cooperation And Resource Abundance (A Case Study Of Khanty-Mansiysk)," HSE Working papers WP BRP 15/PA/2014, National Research University Higher School of Economics.

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