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Russian budget structure efficiency: Empirical study

Author

Listed:
  • Alexey Kudrin

    (St. Petersburg State University, St. Petersburg, Russia
    Gaidar Institute for Economic Policy, Moscow, Russia
    Accounts Chamber of the Russian Federation, Moscow, Russia)

  • Alexander Knobel

    (Gaidar Institute for Economic Policy, Moscow, Russia
    Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

Abstract

This paper investigates the economic efficiency of Russian public expenditures in 2002–2016 by estimation of their multiplicative impact on the GDP level and economic growth. We use the empirical methodology based on Corsetti et al. (2012). We estimate a number of fiscal multipliers: on national security, law-enforcement activity, national defense, education, health care and sport and road infrastructure. For assessing the influence of budget structure on long-term economic growth rates, we estimate the SVAR model in which GDP growth is a structural variable. The research shows a positive influence of budgetary resources redistribution from non-productive government expenditures to productive ones on economic development.

Suggested Citation

  • Alexey Kudrin & Alexander Knobel, 2018. "Russian budget structure efficiency: Empirical study," Russian Journal of Economics, ARPHA Platform, vol. 4(3), pages 197-214, October.
    • Handle: RePEc:arh:jrujec:v:4:y:2018:i:3:p:197-214
    DOI: 10.3897/j.ruje.4.30163
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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