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

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  • Alexeev, Michael
  • Chernyavskiy, Andrey

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.

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  • Alexeev, Michael & Chernyavskiy, Andrey, 2018. "A tale of two crises: Federal transfers and regional economies in Russia in 2009 and 2014–2015," Economic Systems, Elsevier, vol. 42(2), pages 175-185.
    • Handle: RePEc:eee:ecosys:v:42:y:2018:i:2:p:175-185
    DOI: 10.1016/j.ecosys.2017.07.002
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    More about this item

    Keywords

    Intergovernmental relations; Interregional inequality; Russian economy;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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