IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa03p477.html
   My bibliography  Save this paper

A model of Russian local public finance and social asset divestiture

Author

Listed:
  • Pertti Haaparanta

    ()

  • Tuuli Juurikkala

    ()

Abstract

The division of tax revenues between the federal, regional and local layers of government of the Russian Federation has undergone continuous reform and thus received a lot of attention both in the public discussion and in the related research on fiscal federalism. Another important unsettled issue of property rights in the country is the absence of market for land and its implications to the tax structure. A third and often overlooked phenomenon is the participation of industrial firms in infrastructure and social service provision. Despite a massive transfer of social assets to the public sector, firms still participate in these activities to some extent, in many cases receiving benefits from the government for doing this. In earlier research, the fact that the industrial firms might still produce public goods has not received much attention. In this paper, we analyse the issue of public good production by looking at the implications of the non-existence of property rights over land and the absence of land markets through an optimal local public finance model. We first introduce the possibility that the industrial firms in a certain locality may take part in public goods provision. Second, we prove that when the land distribution is given, it may be beneficial to levy a turnover tax on the firms and redistribute (part) of the housing stock to the public sector.

Suggested Citation

  • Pertti Haaparanta & Tuuli Juurikkala, 2003. "A model of Russian local public finance and social asset divestiture," ERSA conference papers ersa03p477, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa03p477
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/477.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p477. 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: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.