Proceedings of the 6th Economic & Finance Conference, OECD Headquarters, Paris

INTER-REGIONAL DISPARITIES IN THE BUDGET REVENUES PER CAPITA AND THEIR DETERMINANTS: RUSSIAN CASE STUDY

MARINA MALKINA

Abstract:

The aim of the research is evaluation of inter-regional disparities in budget revenues per capita and assessment of the factors influenced them in statics and dynamics, based on data of Russian Federation regions in 2004-2014. We proposed a four-factor multiplicative model of the formation of budget revenues per capita which describes the transition from GDP per capita to the collected taxes per capita, to the regionally-assigned tax revenues per capita after tax sharing between levels of the budget system and to the budget revenues per capita after intergovernmental transfers and budget loans. To assess the level of inter-regional differences at all these stages we employed the population-weighted Theil-Bernoulli index, which is the measure of entropy sensitive to the bottom-part distribution. By means of this index decomposition, first proposed by Duro J.A. and Esteban J., and its application to our multiplicative model, we assessed the impact of four main factors and three intersect factors on inequality in regions budgetary provision, both in panel data and in time series.

Keywords: budget revenues per capita, inter-regional inequality, Theil-Bernoulli index, decomposition, convergence, divergence

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