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Fiscal Incentives in Federations: Russia and the US Compared

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  • Michael Alexeev

    (Indiana University
    The Russian Academy of National Economy and Public Administration)

Abstract

I compare fiscal incentives in Russia and the US according to the conventional measures employed in the relevant literature. Although Russia is more fiscally centralized as measured by shares of budget expenditures and revenues, measures of fiscal incentives at the margin are largely similar in the US and Russia both at the regional and municipal levels. These results are contrary to the estimates obtained for Russia in the earlier literature. It appears that fiscal federalism reforms undertaken in Russia throughout the 2000s improved fiscal incentives of subnational governments. However, these results should be treated with great caution as fiscal incentive measures employed in this paper and in the literature at large are far from perfect. This might provide an explanation for the result that intraregional fiscal incentives do not have a significant effect on economic growth.

Suggested Citation

  • Michael Alexeev, 2016. "Fiscal Incentives in Federations: Russia and the US Compared," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(4), pages 485-506, December.
    • Handle: RePEc:pal:compes:v:58:y:2016:i:4:d:10.1057_s41294-016-0010-4
    DOI: 10.1057/s41294-016-0010-4
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    References listed on IDEAS

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    Cited by:

    1. Omodero Cordelia Onyinyechi, 2022. "Fiscal Federalism, Tax Independence and Social Enhancement," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(4), pages 1-15, December.
    2. Vladislav V. Bukharsky, 2021. "Fiscal Decentralization and Incentives of Local Authorities in the Russian Federation," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 114-129, April.
    3. Alexeev, Michael & Chernyavskiy, Andrey, 2018. "A tale of two crises: Federal transfers and regional economies in Russia in 2009 and 2014–2015," Economic Systems, Elsevier, vol. 42(2), pages 175-185.
    4. Бухарский В. В. & Лавров А. М., 2021. "Межбюджетные Отношения И Государственное Управление: Возможности И Ограничения Децентрализации," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 2, pages 126-153.
    5. Brock, Gregory, 2019. "A remote sensing look at the economy of a Russian region (Rostov) adjacent to the Ukrainian crisis," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 416-431.

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    More about this item

    Keywords

    fiscal federalism; fiscal decentralization; Russian regions; the US states;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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