Incentive Effects of Fiscal Equalization: Has Russian Style Improved?

摘要: The effects of intergovernmental fiscal arrangements on variation in regional economic growth are analyzed for Russia, a country with large cross-regional differences and considerable redistribution. Moreover, reforms implemented the first half 2000s, which to some extent followed scientific advice, make analysis this case particularly interesting. We observe that postreform redistribution became more rational, resulted fewer incentive distortions. found no negative association between federal transfers growth. Furthermore, there major among donor recipient regions way influence Overall, policy variables have become less important determinants than was 1990s. Still, further federalism would be desirable.