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Regional-local dimension of Russia's fiscal equalization

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  • Martinez-Vazquez, Jorge
  • Timofeev, Andrey

Abstract

National equalization policies often are concerned with the quality and accessibility of services delivered at the lowest (or local) level of government. When these policies are implemented in a hierarchical fashion through the intermediate level governments, the central government pursuing equalization goals needs to take into account possible offsetting effects originating in regional or provincial government policies. In this paper, we examine recent fiscal equalization outcomes for about 2000 Russian local governments to assess and explain the extent of equalization differences between and within regions. In particular, we examine the claim that intraregional policies should be blamed for rising disparities in local fiscal outcomes despite Russia's federal government efforts to equalize sub-national government finances. Regional policies improve equalization outcomes, but the degree of equalization effort varies greatly across the regions as a result of political and socio-economic factors, partially identified in this study. Journal of Comparative Economics 36 (1) (2008) 157-176.

Suggested Citation

  • Martinez-Vazquez, Jorge & Timofeev, Andrey, 2008. "Regional-local dimension of Russia's fiscal equalization," Journal of Comparative Economics, Elsevier, vol. 36(1), pages 157-176, March.
  • Handle: RePEc:eee:jcecon:v:36:y:2008:i:1:p:157-176
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    1. repec:kap:itaxpf:v:24:y:2017:i:2:d:10.1007_s10797-016-9416-1 is not listed on IDEAS
    2. Jorge Martinez-Vazquez & Andrey Timofeev, 2010. "The Long and Winding Road to Local Fiscal Equity in the United States: A Fifty Year Retrospective," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1027, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
    4. Irina N. Ilina & Carol S. Leonard & Evgenij E. Plisetskij, 2014. "Russian Regional Resilience: Finance, Cooperation And Resource Abundance (A Case Study Of Khanty-Mansiysk)," HSE Working papers WP BRP 15/PA/2014, National Research University Higher School of Economics.
    5. Alexeev, Michael & Weber, Shlomo, 2013. "Russian Fiscal Federalism: Impact of Political and Fiscal (De)centralization," CEPR Discussion Papers 9356, C.E.P.R. Discussion Papers.
    6. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0705, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Lev Freinkman & Konstantin A. Kholodilin & Ulrich Thie├čen, 2009. "Incentive Effects of Fiscal Equalization: Has Russian Style Improved?," Discussion Papers of DIW Berlin 912, DIW Berlin, German Institute for Economic Research.
    8. Masayoshi Hayashi, 2013. "On the Decomposition of Regional Stabilization and Redistribution," CIRJE F-Series CIRJE-F-910, CIRJE, Faculty of Economics, University of Tokyo.
    9. Yongzheng Liu & Jorge Martinez-Vazquez & Alfred M. Wu, 2017. "Fiscal decentralization, equalization, and intra-provincial inequality in China," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 248-281.

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