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The Response of Federal Transfers to Measures of Social Need in Russia's Regions


  • Judith Thornton

    (Department of Economics University of Washington)

  • Krisztina Nagy

    (Department of Economics University of Washington)


Do Russian federal expenditures serve to reduce regional inequality, to insure against exogenous shocks, or to compensate regions for low tax capacity? Do sub-national governments appear to engage in strategic behavior in attempting to influence central governmental transfers? Using a panel data base coving Russia’s regions during the period after the Russian financial crisis, we find that federal administrative employment in a region has a strong positive effect on federal transfers to the region, but that there is little evidence that federal expenditures serve to reduce levels of regional inequality and no evidence that changes in federal transfers respond to changes in “social needs” during the period studied.

Suggested Citation

  • Judith Thornton & Krisztina Nagy, 2006. "The Response of Federal Transfers to Measures of Social Need in Russia's Regions," Working Papers UWEC-2007-34, University of Washington, Department of Economics.
  • Handle: RePEc:udb:wpaper:uwec-2007-34

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    References listed on IDEAS

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    Cited by:

    1. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
    2. Elliott Parker & Judith Thornton, 2007. "Fiscal Centralisation and Decentralisation in Russia and China," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(4), pages 514-542, December.
    3. Lev Freinkman & Konstantin A. Kholodilin & Ulrich Thießen, 2009. "Incentive Effects of Fiscal Equalization: Has Russian Style Improved?," Discussion Papers of DIW Berlin 912, DIW Berlin, German Institute for Economic Research.

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