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Benchmarking the Efficiency of Public Expenditure in the Russian Federation


  • David Hauner


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.

Suggested Citation

  • David Hauner, 2007. "Benchmarking the Efficiency of Public Expenditure in the Russian Federation," IMF Working Papers 07/246, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:07/246

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    References listed on IDEAS

    1. Tanzi, Vito & Schuknecht, Ludger, 1997. "Reconsidering the Fiscal Role of Government: The International Perspective," American Economic Review, American Economic Association, vol. 87(2), pages 164-168, May.
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    6. Zhuravskaya, Ekaterina V., 2000. "Incentives to provide local public goods: fiscal federalism, Russian style," Journal of Public Economics, Elsevier, vol. 76(3), pages 337-368, June.
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    8. 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.
    9. 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.
    10. Era Dabla-Norris & Shlomo Weber, 2001. "Regional Disparities and Transfer Policies in Russia; Theory and Evidence," IMF Working Papers 01/199, International Monetary Fund.
    11. Kwon, Goohoon & Spilimbergo, Antonio, 2005. "Russia's Regions: Income Volatility, Labour Mobility and Fiscal Policy," CEPR Discussion Papers 5265, C.E.P.R. Discussion Papers.
    12. 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.
    13. David Hauner, 2005. "Explaining efficiency differences among large German and Austrian banks," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 969-980.
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    Cited by:

    1. Federico Revelli, 2010. "Spend more, get more? An inquiry into English local government performance," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 185-207, January.
    2. Aristovnik, Aleksander & Obadić, Alka, 2014. "Measuring relative efficiency of secondary education in selected EU and OECD countries: the case of Slovenia and Croatia," MPRA Paper 63936, University Library of Munich, Germany.
    3. Francesco Grigoli, 2012. "Public Expenditure in the Slovak Republic; Composition and Technical Efficiency," IMF Working Papers 12/173, International Monetary Fund.
    4. 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.
    5. World Bank, 2011. "Russian federation : Social Expenditure and Fiscal Federalism in Russia," World Bank Other Operational Studies 2735, The World Bank.
    6. Nazarov, Vladimir & Davis, Christopher Mark & Gerry, Christopher J. & Polyakova, Aleksandra & Sisigina, Natalia & Sokolov, D., 2015. "Evaluating the Effectiveness and Efficiency of the Health System," Published Papers mn41, Russian Presidential Academy of National Economy and Public Administration.
    7. 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.
    8. repec:rnp:ecopol:ep1757 is not listed on IDEAS
    9. David Hauner, 2008. "Macroeconomic Effects of Pension Reform in Russia," IMF Working Papers 08/201, International Monetary Fund.

    More about this item


    Fiscal analysis; Russian Federation; Productivity; Public sector; Governance; government expenditure; public sector efficiency; fiscal federalism; Russia; expenditure; public spending; public expenditure; health expenditure; health care;

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