nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2009‒07‒17
two papers chosen by
Anna Y. Borodina
Perm State University

  1. Strategic tax collection and fiscal decentralization: the case of Russia By Alexander Libman; Lars P. Feld
  2. The structure of herring product demand in Russia By Lien, Kristin; Tveterås, Ragnar; Tveterås, Sigbjørn

  1. By: Alexander Libman (University of Mannheim); Lars P. Feld (University of Heidelberg)
    Abstract: In a centralized federation, where tax rates and taxation rules are set by the federal government, manipulating the thoroughness of tax auditing and the effectiveness of tax collection could be attractive for regional authorities because of a variety of reasons. These range from tax competition to principal-agent problems, state capture and benefits of fiscal equalization. In this paper we discuss strategic tax auditing and collection from the perspective of fiscal federalism and test for strategic tax collection empirically using data of the Russian Federation. Russia’s regional authorities in the 1990s have always been suspect of tax auditing manipulations in their favor. However, in the 2000s increasing bargaining po¬wer of the centre seems to induce tax collection bodies in the regions to manipulate tax auditing in favor of the federal centre. Our findings confirm the existence of strategic tax collection for the Yeltsin period after exclusion of outliers; the results for the Putin period are however rather ambiguous.
    Keywords: fiscal federalism, tax arrears, transition economies
    JEL: H26 H77
    Date: 2009
  2. By: Lien, Kristin (Norwegian Seafood Export Council); Tveterås, Ragnar (University of Stavanger); Tveterås, Sigbjørn (University of Stavanger)
    Abstract: Russia is experiencing deep structural changes in many areas. For the seafood industry important developments are large increases in household incomes, development of modern super- and hypermarket distribution channels, and product innovations. In the seafood category consumers are adopting new species and new product forms at a rapid rate. Herring is one of the species that is experiencing these changes. The dominant product form has traditionally been whole salted herring, typically sold at open markets. Herring sold in the traditional unprocessed form has been a protein source for poor people, consumed at home. But more processed and expensive product forms that are distributed through modern distribution channels have increased their market share during the data period. <p> We employ a panel data set on monthly per capita demand for different herring products in six Russian regions, from unprocessed to value added products, to test hypotheses on the structure of herring consumption. We estimate dynamic panel data demand systems, with region-specific estimates of price and income elasticities. The six regions in the data set have large differences in average per capita income. Our econometric estimates indicate significant structural regional differences in per capita consumption of different products, also after controlling for income differences. We find that whole herring is generally an inferior good, whereas fillet herring products tend to be normal goods. This suggests that if incomes continue to increase, consumption will shift further from unprocessed to value added herring products.
    Keywords: seafood; demand
    JEL: M20
    Date: 2009–04–28

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