Citation

Discussion Paper Details

Please find the details for DP5265 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Russia's Regions: Income Volatility, Labour Mobility and Fiscal Policy

Author(s): Goohoon Kwon and Antonio Spilimbergo

Publication Date: October 2005

Keyword(s): fiscal policy, labour mobility, panel VAR and Russia

Programme Area(s): International Macroeconomics and International Trade and Regional Economics

Abstract: Russia's regions are heavily exposed to regional income shocks because of an uneven distribution of natural resources and a Soviet legacy of heavily skewed regional specialization. Also, Russia has a limited mobility of labour and lacks fiscal instruments to deal with regional shocks. We assess how these features influence the magnitude and persistence of regional income shocks, through a panel vector auto-regression, drawing on extensive and unique regional data covering the last decade. We find that labour mobility associated with regional shocks is far lower than in the US yet higher than in the EU-15, and that regional expenditures tend to expand in booms and contract in recessions. We discuss institutional factors behind these outcomes and policy implications.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5265

Bibliographic Reference

Kwon, G and Spilimbergo, A. 2005. 'Russia's Regions: Income Volatility, Labour Mobility and Fiscal Policy'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5265