A tale of two crises: Federal transfers and regional economies in Russia in 2009 and 2014–2015

Michael Alexeev and Andrey Chernyavskiy

Economic Systems, 2018, vol. 42, issue 2, 175-185

Abstract: We examine transfers from Russia’s federal government to the regions during the two recent economic crises. We show that while federal transfers in 2009 were large and targeted poorer regions, the 2014–2015 transfers were much smaller and not targeted. This policy shift was accompanied by a relatively greater decline in own revenues in the poorer regions and their worse economic performance overall. As a result, interregional budget expenditure inequality in Russia was significantly higher in 2014–2015 than it had been for years. This is important because regional budgets are responsible for a large share of investments, housing, education and healthcare.

Keywords: Intergovernmental relations; Interregional inequality; Russian economy (search for similar items in EconPapers)
JEL-codes: H77 O52 P35 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:42:y:2018:i:2:p:175-185

DOI: 10.1016/j.ecosys.2017.07.002

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