Are Intergovernmental Grants Tactical? The Evidence from Russia
Two hypotheses about the determinants of Russian intergovernmental grants are tested empirically. According to first hypothesis, federal transfers to regions correlate with recent voting behavior of regional electorates. Second hypothesis states that transfers are higher in regions with politically powerful governors. We find a strong confirmation for the first hypothesis and no evidence for the second for years 1995-1998. This result is robust across specifications. Panel data analysis allows us to control for regional fixed effects. However, in years 1999-2001 election variables show no effect on transfers. It appears that in the nineties transfers were used by the incumbent government to enhance its reelection probabilities, while by the end of the century this mechanism was no longer in use as the transfer system has become more transparent and objective.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +48 22 206 29 00
Fax: +48 22 206 29 01
Web page: http://www.case-research.eu/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sec:cnstan:0361. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarzyna Sidło)
If references are entirely missing, you can add them using this form.