16 research outputs found

    THE REGIONAL GOVERNANCE CONTEXT IN RUSSIA: A GENERAL FRAMEWORK

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    Industrialization and China's Rural Modernization

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    Fiscal Decentralization in the Soviet Economy*

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    This paper surveys local public finance developments in the former Soviet Union during perestroika. We argue that there was a significant decentralization of taxation power and responsibility to the oblast and city levels between 1985 and 1990. This decentralization, accompanied by more pressure on local organizations to spend, led to the breakdown of a coordinated all-Union fiscal system.

    Fiscal Decentralization in the Soviet Economy

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    Complementarity and Custom in Wage Contract Violation

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    We present and estimate a model with strategic complementarities in firms' choices of on-time or delayed wage payment. Linked employer-employee panel data from Russia facilitate identification of the endogenous interactions through fixed effects for firms, workers, and local labor markets, and instrumental variables based on policy interventions. The estimated reaction function displays strongly positive neighborhood effects, and the estimated feedback loops-worker quits, effort, strikes, and legal penalties-imply that costs of wage delays are attenuated by neighborhood arrears. We also study a nonlinear case with two stable symmetric equilibria: a punctual payment and a late payment equilibrium. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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