Fiscal Incentives in Federations: Russia and the US Compared

Michael Alexeev

Comparative Economic Studies, 2016, vol. 58, issue 4, No 1, 485-506

Abstract: I compare fiscal incentives in Russia and the US according to the conventional measures employed in the relevant literature. Although Russia is more fiscally centralized as measured by shares of budget expenditures and revenues, measures of fiscal incentives at the margin are largely similar in the US and Russia both at the regional and municipal levels. These results are contrary to the estimates obtained for Russia in the earlier literature. It appears that fiscal federalism reforms undertaken in Russia throughout the 2000s improved fiscal incentives of subnational governments. However, these results should be treated with great caution as fiscal incentive measures employed in this paper and in the literature at large are far from perfect. This might provide an explanation for the result that intraregional fiscal incentives do not have a significant effect on economic growth.

Keywords: fiscal federalism; fiscal decentralization; Russian regions; the US states (search for similar items in EconPapers)
JEL-codes: H73 H77 P52 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1057/s41294-016-0010-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:58:y:2016:i:4:d:10.1057_s41294-016-0010-4

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

DOI: 10.1057/s41294-016-0010-4

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().