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Words or deeds – what matters? Experience of recentralization in Russian security agencies

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  • Libman, Alexander

Abstract

Although decentralization is often modeled as an outcome of bargaining over rents and poli-cies, intuitively it seems possible that public statements, symbols and status often have a great impact on this process. The paper studies the relative importance of the “real” political actions versus the changes of symbolic nature in the bargaining over devolution and secession, using the unique laboratory of the personnel recentralization in the Russian security agencies in 2000-2007. While in the 1990s regional branches of federal ministries were mostly captured by regional governors, in 2000s Putin replaced the heads of agencies by new bureaucrats, cut-ting the connections to the region. The paper finds a robust influence of symbolic gestures made by regional governments in the earlier bargaining process on appointments, even if the actual devolution policies did not matter. Symbolic actions seem to play a crucial role in the decisions in this highly sensitive area.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29197.

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Date of creation: Jan 2011
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Handle: RePEc:pra:mprapa:29197

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Keywords: devolution; bargaining; fiscal federalism; transition economies;

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  1. Lorenz Blume & Stefan Voigt, 2008. "Federalism and Decentralization – A Critical Survey of Frequently Used Indicators," MAGKS Papers on Economics 200821, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Libman, Alexander, 2009. "Constitutions, Regulations, and Taxes: Contradictions of Different Aspects of Decentralization," MPRA Paper 15854, University Library of Munich, Germany.
  3. Klaus Abbink & Jordi Brandts, 2007. "Political Autonomy and Independence: Theory and Experimental Evidence," UFAE and IAE Working Papers 689.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Klaus Abbink & Jordi Brandts, 2007. "Political Autonomy and Independence: Theory and Experimental Evidence," Working Papers 302, Barcelona Graduate School of Economics.
  5. Croson, Rachel & Boles, Terry & Murnighan, J. Keith, 2003. "Cheap talk in bargaining experiments: lying and threats in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 143-159, June.
  6. Arzaghi, Mohammad & Henderson, J. Vernon, 2005. "Why countries are fiscally decentralizing," Journal of Public Economics, Elsevier, vol. 89(7), pages 1157-1189, July.
  7. 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.
  8. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  9. Robert Young, 2004. "Secession as Revolution," Homo Oeconomicus, Institute of SocioEconomics, vol. 21, pages 373-395.
  10. Elinder, Mikael & Jordahl, Henrik & Poutvaara, Panu, 2008. "Selfish and Prospective: Theory and Evidence of Pocketbook Voting," Working Paper Series 770, Research Institute of Industrial Economics.
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Cited by:
  1. Inklaar, Robert & Koetter, Michael & Noth, Felix, 2012. "Who's afraid of big bad banks? Bank competition, SME, and industry growth," Frankfurt School - Working Paper Series 197, Frankfurt School of Finance and Management.
  2. Dietmar Harhoff & Elisabeth Mueller & John Van Reenen, 2013. "What are the Channels for Technology Sourcing? Panel Data Evidence from German Companies," CEP Discussion Papers dp1193, Centre for Economic Performance, LSE.
  3. Kostka, Genia & Moslener, Ulf & Andreas, Jan G., 2011. "Barriers to energy efficiency improvement: Empirical evidence from small-and-medium sized enterprises in China," Frankfurt School - Working Paper Series 178, Frankfurt School of Finance and Management.
  4. Libman, Alexander & Kozlov, Vladimir & Schultz, André, 2012. "Roving bandits in action: Outside option and governmental predation in autocracies," Frankfurt School - Working Paper Series 190, Frankfurt School of Finance and Management.
  5. Boeing, Philipp & Mueller, Elisabeth & Sandner, Philipp, 2012. "What makes Chinese firms productive? Learning from indigenous and foreign sources of knowledge," Frankfurt School - Working Paper Series 196, Frankfurt School of Finance and Management.
  6. Böing, Philipp & Müller, Elisabeth, 2012. "Technological Capabilities of Chinese Enterprises: Who is Going to Compete Abroad?," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62081, Verein für Socialpolitik / German Economic Association.
  7. Harhoff, Dietmar, 2012. "What are the Channels for Technology Sourcing? Panel Data Evidence from German Companies," Discussion Papers in Business Administration 14327, University of Munich, Munich School of Management.

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