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Regional-local dimension of Russia's fiscal equalization

  • Martinez-Vazquez, Jorge
  • Timofeev, Andrey

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.

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Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 36 (2008)
Issue (Month): 1 (March)
Pages: 157-176

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Handle: RePEc:eee:jcecon:v:36:y:2008:i:1:p:157-176
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

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  1. Bahl, Roy W. & Wallich, Christine, 1992. "Intergovernmental fiscal relations in China," Policy Research Working Paper Series 863, The World Bank.
  2. Bert Hofman & Susana Cordeira Guerra, 2004. "Ensuring Inter-regional Equity and Poverty Reduction," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0411, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. Baoyun Qiao & Jorge Martinez-Vazquez & Yongsheng Xu, 2002. "Growth and Equity Tradeoff in Decentralization Policy: China's Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0216, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. Zhuravskaya Ekatherina, 2000. "Incentives to Provide Local Public Goods: Fiscal Federalism, Russian Style," EERC Working Paper Series 99-15e, EERC Research Network, Russia and CIS.
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  6. 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.
  7. Alexeev, Michael & Kurlyandskaya, Galina, 2003. "Fiscal federalism and incentives in a Russian region," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 20-33, March.
  8. Gauri, Varun, 2004. "Social Rights and Economics: Claims to Health Care and Education in Developing Countries," World Development, Elsevier, vol. 32(3), pages 465-477, March.
  9. Stewart, K., 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Economics Working Papers eco97/22, European University Institute.
  10. Le Grand, Julian, 1975. "Fiscal Equity and Central Government Grants to Local Authorities," Economic Journal, Royal Economic Society, vol. 85(339), pages 531-47, September.
  11. Kitty Stewart, 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Papers iopeps97/7, Innocenti Occasional Papers, Economic Policy Series.
  12. Jorge Martinez-Vazquez & Andrey Timofeev & Jameson Boex, 2006. "Reforming Regional-Local Finance in Russia," World Bank Publications, The World Bank, number 6925.
  13. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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