Does fiscal redistribution discourage local public investment?. Evidence from transitional Russia*

Autor:	Thornton Matheson
Rok vydání:	2005
Předmět:	Economics and Econometrics Regional economics Local government Economics Revenue Redistribution (cultural anthropology) Fiscal federalism Federalism International economics Per capita income Panel data
Zdroj:	The Economics of Transition. 13:139-162
ISSN:	1468-0351 0967-0750
DOI:	10.1111/j.1468-0351.2005.00210.x
Popis:	This paper studies the determinants of regional (oblast-level) public investment in transitional Russia, focusing on the effects of federal fiscal redistribution. A model of local government expenditure in the presence of regional asymmetries shows that revenue redistribution from wealthy to poor regions discourages local public investment. Random- and fixed-effects estimation of regional panel data for 1994–97 supports the existence of a disincentive effect from fiscal redistribution on regional public investment, which varies according to a region’s federal status and wealth: nonrepublics have a lower propensity to invest out of transfers than out of own income, as do regions with above-median per capita income. Republics reduce public investment more than current spending in response to higher federal taxation. Russia’s ‘asymmetrical federalism’ thus creates different fiscal incentives for different types of regions.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::90a8f9f23e3ae24c0f4f61c06a85e4ca https://doi.org/10.1111/j.1468-0351.2005.00210.x Zobrazit plný text záznamu Plný text ve formátu PDF