The present paper considers two types of models of interaction between a tax authority and a group of taxpayers. The first type of model assumes no corruption, and the strategy of the authority is the probability of auditing a taxpayer depending on his/her declared income and other available...

This paper presents the results of one of the first experimental studies of individual choice in transitional Russia. The study is based on two standard types of experimental design: on risk attitudes via individual preferences over two-outcome lotteries, and on public good provision under...

Based on unique data set on Russian city budgets, this paper shows that revenue sharing between regional and local governments provides local governments with no incentive to increase tax base or provide public goods. Any change in local government’s own revenues is almost entirely offset by...

Theoretical considerations suggest that as market institutions are developing in Russian regions, the divergence of regional consumer price levels, which has been caused by the price liberalization of 1992, should give way to price level convergence. Using price dynamics data (overall consumer...