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Factors determining intra-regional fiscal decentralization in Russia and the US

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  • Alexeev, Michael
  • Mamedov, Arseny

Abstract

We use panel data for Russia's regions (2005–2013) and the US states (1997–2013) and several different econometric specifications to estimate and compare the determinants of fiscal decentralization in the two countries. We find that while the factors of decentralization in the US states largely conform to existing theoretical predictions, this is not so for Russia, where almost no factors are consistently associated with intraregional fiscal decentralization. Moreover, our results for Russia differ from prior results based on earlier data. We conjecture that the recent weakening of the effects of conventional fiscal decentralization determinants in Russia is due to the decline of democratic institutions in Russia's regions and overall political and economic centralization in the country.

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  • Alexeev, Michael & Mamedov, Arseny, 2017. "Factors determining intra-regional fiscal decentralization in Russia and the US," Russian Journal of Economics, Elsevier, vol. 3(4), pages 425-444.
    • Handle: RePEc:eee:rujoec:v:3:y:2017:i:4:p:425-444
    DOI: 10.1016/j.ruje.2017.12.007
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    Cited by:

    1. Alexander Chepurenko & Maria Kristalova & Michael Wyrwich, 2019. "Historical and Institutional Determinants of Universities’ Role in Fostering Entrepreneurship," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(4), pages 48-59.
    2. Judith Thornton & Krisztina Nagy & Pasita Chaijaroen, 2019. "Changing Tax Effort in Russia’s Regions; the Impact of Re-Centralization," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 7(1), pages 62-79.

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    More about this item

    Keywords

    H72; H77; P51; fiscal federalism; expenditure decentralization; Russian economy; US economy;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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