Regional Disparities and Transfer Policies in Russia: Theory and Evidence

Era Dabla-Norris and Shlomo Weber

No 2001/199, IMF Working Papers from International Monetary Fund

Abstract: In this paper we examine economic disparities across regions in Russia and offer a theoretical treatment of various transfer rules between different regions. We analyze the principle of partial equalization, which implies that the more depressed regions should be subsidized by the more advantaged regions, but, the burden on more prosperous regions should not be excessive. Although, contrary to the partial equalization principle, the gaps between the richer and poorer regions have widened since the transition, there are some signs that this trend could be reversed.

Keywords: WP; federal government; economic structure; central government; Russia; regional disparities; horizontal imbalances; transfers; transfer policy; collection region; federation treaty; government policy; customized revenue assignment; revenue collection; net revenue gap; transfer system; federation equal; government transfer policy; concerted government policy; Budget planning and preparation; Fiscal union; Capital accumulation (search for similar items in EconPapers)
Pages: 23
Date: 2001-12-01
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2001/199

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