Incentive Effects of Fiscal Equalization: Has Russian Style Improved?

摘要: The effects of inter-government 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 followed to some extent scientific advice, make analysis this case particularly interesting. We observe that post-reform redistribution became more rational resulted fewer incentive distortions. found no negative association between federal transfers growth. Furthermore, there major donor recipient regions way how inter-governmental influence Overall, policy variables have become less important determinants than it was 1990s. Still further federalism would be desirable.