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Benchmarking the Efficiency of Public Expenditure in the Russian Federation

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  • David Hauner

Abstract

This paper benchmarks the efficiency of public expenditure in the social sectors in the Russian Federation relative to other countries and among the country''s regions. It finds that there is substantial room for efficiency gains, particularly in health care and social protection, although less so in education. An econometric analysis of efficiency differences between the regions suggests that they are positively related to per capita income and the quality of governance and democratic control, while they are negatively related to the share of federal transfers in the respective region''s government revenue and the level of spending relative to gross regional product.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/246.

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Length: 40
Date of creation: 01 Oct 2007
Date of revision:
Handle: RePEc:imf:imfwpa:07/246

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Related research

Keywords: Productivity; Governance; Fiscal analysis; expenditure; public spending; public expenditure; health expenditure; health care; government expenditure; public health; health spending; expenditure efficiency; expenditures; public health spending; infant mortality; private spending; expenditure responsibilities; health care financing; hospital beds; social expenditure; higher expenditure; total expenditure; public expenditure efficiency; health care system; economies of scale; capital spending; information system; income households; hospital capacity; financial incentives; insurance funds; medical insurance; administrative costs; budgetary authorities; public insurance; efficiency of government expenditure; primary care; expenditure paths; social expenditures; public expenditure per student; fiscal policy; expenditure categories; total expenditures;

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References

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  1. Afonso, Antonio & St. Aubyn, Miguel, 2006. "Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs," Economic Modelling, Elsevier, vol. 23(3), pages 476-491, May.
  2. Berkowitz, Daniel & DeJong, David N., 2003. "Policy reform and growth in post-Soviet Russia," European Economic Review, Elsevier, vol. 47(2), pages 337-352, April.
  3. Dabla-Norris, Era & Gradstein, Mark & Inchauste, Gabriela, 2008. "What causes firms to hide output? The determinants of informality," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 1-27, February.
  4. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  5. Ekaterina Zhuravskaya, 2000. "Incentives to provide local public goods: fiscal federalism, Russian style," Working Papers w0001, Center for Economic and Financial Research (CEFIR).
  6. Ale Bulir & A. Javier Hamann, 2003. "Aid Volatility: An Empirical Assessment," IMF Staff Papers, Palgrave Macmillan, vol. 50(1), pages 4.
  7. Goohoon Kwon & Antonio Spilimbergo, 2005. "Russia's Regions," IMF Working Papers 05/185, International Monetary Fund.
  8. Vladimir Popov, 2004. "Fiscal Federalism in Russia: Rules versus Electoral Politics," Comparative Economic Studies, Palgrave Macmillan, vol. 46(4), pages 515-541, December.
  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.
  10. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  11. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
  12. Tanzi, Vito & Schuknecht, Ludger, 1997. "Reconsidering the Fiscal Role of Government: The International Perspective," American Economic Review, American Economic Association, vol. 87(2), pages 164-68, May.
  13. David Hauner, 2004. "Explaining Efficiency Differences Among Large German and Austrian Banks," IMF Working Papers 04/140, International Monetary Fund.
  14. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
  15. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
  16. Era Dabla-Norris & Shlomo Weber, 2001. "Regional Disparities and Transfer Policies in Russia," IMF Working Papers 01/199, International Monetary Fund.
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Citations

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Cited by:
  1. David Hauner, 2008. "Macroeconomic Effects of Pension Reform in Russia," IMF Working Papers 08/201, International Monetary Fund.
  2. Revelli Federico, 2008. "Spend more, get more? An inquiry into English local government performance," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200804, University of Turin.
  3. Francesco Grigoli, 2012. "Public Expenditure in the Slovak Republic," IMF Working Papers 12/173, International Monetary Fund.
  4. Heyndrickx, Christophe & Alexeeva-Talebi, Victoria & Tourdyeva, Natalia, 2012. "To raise or not to raise? Impact assessment of Russia's incremental gas price reform," ZEW Discussion Papers 12-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Irina Sinitsina, 2011. "Public Expenditures on Education and Health in Russian Federation before and during the Global Crisis," CASE Network Reports 0103, CASE-Center for Social and Economic Research.
  6. World Bank, 2011. "Russian federation : Social Expenditure and Fiscal Federalism in Russia," World Bank Other Operational Studies 2735, The World Bank.

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