Roving Bandits in Action: Outside Option and Governmental Predation in Autocracies
The paper investigates the influence of an outside option, i.e. the opportunity to continue one’s career outside the territory currently controlled, on the predatory behavior of the autocrats. Using the data on effectiveness of tax collection and repressiveness of tax jurisprudence in Russian regions in 2007-2009 it demonstrates that regions ruled by governors with larger outside options were characterized, on the one hand, by more repressive behavior of tax authorities, but on the other hand, by smaller additional revenue of the public budget through the tax collection. It conjectures that presence of an outside option induces the ‘roving bandit’ behavior by the autocrats: they use tax auditing to establish control over regional business, but in turn exploit this control to extract private rents rather than revenue for the regional budget used to produce public goods.
The paper investigates the influence of outside options on the predatory behavior of autocrats. An outside option is referred to as the opportunity of an incumbent ruler to continue his career outside his current territory of control. The paper uses data on the effectiveness of tax collection and the repressiveness of tax jurisprudence for Russian regions in 2007-2009 and finds that regions ruled by governors with substantial outside options are characterized by more repressive behavior of tax authorities. However, surprisingly, the same tax authorities collect less additional revenues for the public budget. It conjectures that the presence of an outside option induces autocrats to behave like ‘roving bandits’: they use tax audits to establish control over regional companies, but exploit this control to extract private rents rather than revenues for the regional budget used for public goods provision.
The article researches the problems of the system of financial and tax control, the problem of financial and tax control object defining, problems of tax control effectiveness. The author defines the notion of tax control, its characteristics and also gives critical commentary on modern tendency of tax control subject defining.
The paper is dedicated to indication of political and administrative systems’ features that affect performance of regional bureaucracy in Russia.
Using statistical method authors test hypotheses about dependencies of bureaucracy performance on regional political regime, financial dependence on federal center, salaries of public administration executives and their quantity. Results shows significant influence of all these factors. And the features of these relations are not always expectable.
The chapter traces the historical background of the Jewish Autonomous Ollast and analyses its contempoirary position in the Russian Federation.
Author looks at conditions of federal system and its prospects in Russia and in global dimension. He compares various federal models, including special status, from the point of view of containment of separatist menace. On the basis of comparative analysis author expresses preference to non-treaty, territorial, symmetrical federal model.
This paper is timed to the 150th anniversary of the abolition of serfdom in Russia and dedicated to the heritage of A.P. Shchapov (1831-1876) - one of the distinguished historians and public figures of the epoch of «great reforms» of 1860s, a creator of zemstvo-regional conception of Russian history, who contributed significantly to federalistic and local history thought.
We address the external effects on public sector efficiency measures acquired using Data Envelopment Analysis. We use the health care system in Russian regions in 2011 to evaluate modern approaches to accounting for external effects. We propose a promising method of correcting DEA efficiency measures. Despite the multiple advantages DEA offers, the usage of this approach carries with it a number of methodological difficulties. Accounting for multiple factors of efficiency calls for more complex methods, among which the most promising are DMU clustering and calculating local production possibility frontiers. Using regression models for estimate correction requires further study due to possible systematic errors during estimation. A mixture of data correction and DMU clustering together with multi-stage DEA seems most promising at the moment. Analyzing several stages of transforming society’s resources into social welfare will allow for picking out the weak points in a state agency’s work.