Strategic Tax Collection and Fiscal Decentralisation: The Case of Russia
AbstractIn a centralized federation, where tax rates and taxation rules are set by the federal government, manipulating the thoroughness of tax auditing and the effectiveness of tax collection could be attractive for regional authorities because of a variety of reasons. These range from tax competition to principal-agent problems, state capture and benefits of fiscal equalisation. In this paper we discuss strategic tax auditing and collection from the perspective of fiscal federalism and test for strategic tax collection empirically using data of the Russian Federation. Russia’s regional authorities in the 1990s have always been suspect of tax auditing manipulations in their favour. However, in the 2000s increasing bargaining power of the centre seems to induce tax collection bodies in the regions to manipulate tax auditing in favour of the federation. We find partial evidence in favour of both of these hypotheses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2031.
Date of creation: 2007
Date of revision:
fiscal federalism; tax arrears; transition economies;
Other versions of this item:
- Alexander Libman & Lars P. Feld, 2009. "Strategic tax collection and fiscal decentralization: the case of Russia," Working Papers 2009/11, Institut d'Economia de Barcelona (IEB).
- Alexander Libman & Lars P. Feld, 2007. "Strategic Tax Collection and Fiscal Decentralisation: The Case of Russia," CREMA Working Paper Series 2007-09, Center for Research in Economics, Management and the Arts (CREMA).
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
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.:
- Rudiger Ahrend, 2005. "Speed of Reform, Initial Conditions or Political Orientation? Explaining Russian Regions' Economic Performance," Post-Communist Economies, Taylor and Francis Journals, vol. 17(3), pages 289-317.
- Anna Ivanova & Michael Keen & Alexander Klemm, 2005.
"The Russian 'flat tax' reform,"
CEPR & CES & MSH, vol. 20(43), pages 397-444, 07.
- Maria Ponomareva & Ekaterina Zhuravskaya, 2004.
"Federal tax arrears in Russia "Liquidity problems, federal redistribution or regional resistance?","
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 12(3), pages 373-398, 09.
- Maria Ponomareva & Ekaterina Zhuravskaya, 2004. "Federal Tax Arrears in Russia: Liquidity Problems, Federal Redistribution, or Regional Resistance?," Working Papers w0003, Center for Economic and Financial Research (CEFIR).
- Irina Slinko & Evgeny Yakovlev & Ekaterina Zhuravskaya, 2003.
"Laws for Sale: Evidence from Russia,"
w0031, Center for Economic and Financial Research (CEFIR).
- Sonin, Konstantin, 2010.
Journal of Comparative Economics,
Elsevier, vol. 38(2), pages 111-122, June.
- Federico Varese, 1997. "The Transition to the Market and Corruption in Post-socialist Russia," Political Studies, Political Studies Association, vol. 45(3), pages 579-596.
- Yakovlev, Andrei, 1999. "Black cash tax evasion in Russia: Its forms, incentives and consequences at firm level," BOFIT Discussion Papers 3/1999, Bank of Finland, Institute for Economies in Transition.
- Sven Stö & Christian Traxler, 2005. "Tax Evasion and Auditing in a Federal Economy," International Tax and Public Finance, Springer, vol. 12(4), pages 515-531, August.
- 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.
- Gel'man, Vladimir, 1999. "Regime transition, uncertainty and prospects for democratization: The politics for Russia's regions in a comparative perspective," Discussion Papers, Presidential Department P 99-001, Social Science Research Center Berlin (WZB).
- Cai, Hongbin & Treisman, Daniel, 2004. "State corroding federalism," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 819-843, March.
- Christian Baretti & Bernd Huber & Karl Lichtblau, 2002. "A Tax on Tax Revenue: The Incentive Effects of Equalizing Transfers: Evidence from Germany," International Tax and Public Finance, Springer, vol. 9(6), pages 631-649, November.
- Ronald Wintrobe, 2001. "Tax Evasion and Trust," UWO Department of Economics Working Papers 200111, University of Western Ontario, Department of Economics.
- Vladimir Mau & Konstantin Yanovskiy, 2002. "Political and Legal Factors of Economic Growth in Russian Regions," Post-Communist Economies, Taylor and Francis Journals, vol. 14(3), pages 321-339.
- Polterovich, Victor, 2007. "Institutional Trap," MPRA Paper 20595, University Library of Munich, Germany.
- Roger Congleton & Andreas Kyriacou & Jordi Bacaria, 2003. "A Theory of Menu Federalism: Decentralization by Political Agreement," Constitutional Political Economy, Springer, vol. 14(3), pages 167-190, September.
- Elena Jarocinska, 2010. "Intergovernmental grants in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(2), pages 405-427, 04.
- Ponomareva, Maria & Zhuravskaya, Ekaterina, 2004. "Federal Tax Arrears in Russia: Liquidity Problems, Federal Redistribution or Russian Resistance?," CEPR Discussion Papers 4267, C.E.P.R. Discussion Papers.
- Cremer, Helmuth & Gahvari, Firouz, 2000. "Tax evasion, fiscal competition and economic integration," European Economic Review, Elsevier, vol. 44(9), pages 1633-1657, October.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Libman, A., 2010. "Empirical Research on Determinants of Decentralization: A Literature Survey," Journal of the New Economic Association, New Economic Association, issue 6, pages 10-29.
- Bönke, Timm & Jochimsen, Beate & Schröder, Carsten, 2011. "Fiscal equalization and regions' (un)willingness-to-tax: Evidence from Germany," Economics Working Papers 2011,06, Christian-Albrechts-University of Kiel, Department of Economics.
- Libman, Alexander, 2009.
"Constitutions, Regulations, and Taxes: Contradictions of Different Aspects of Decentralization,"
15854, University Library of Munich, Germany.
- Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 395-418, December.
- Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Frankfurt School - Working Paper Series 138, Frankfurt School of Finance and Management.
- Libman, Alexander, 2009. "Models of market integration in Central Asia – comparative performance," MPRA Paper 17510, University Library of Munich, Germany.
- Libman, Alexander Mikhailovich, 2009.
"Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
[ENDOGENOUS BOUNDARIES AND DISTRIBUTION O," MPRA Paper 16473, University Library of Munich, Germany.
- Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany.
- Libman, Alexander, 2008. "Endogenous (De)Centralization and the Russian Federalism," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 9(1), pages 23-57.
- Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
- Libman, Alexander, 2008. "Informal regionalism in Central Asia: subnational and international levels," MPRA Paper 26417, University Library of Munich, Germany.
- Libman, Alexander, 2008. "Economic role of public administration in Central Asia: Decentralization and hybrid political regime," MPRA Paper 10940, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.