Subject The article investigates the impact of objective and subjective factors on the efficiency of fiscal policy of regions and municipalities. Objectives The aim is to analyze various aspects of regional fiscal policy from the perspective of applicability of the theory of behavioral economics thereto, and to develop proposals for adequate consideration of subjective factors in the fiscal policy of the constituent entities of the Russian Federation and municipalities. Methods In the study, I apply general scientific principles of structured system analysis and a structural-functional analysis. When reviewing the characteristics of particular constituent entities of the Russian Federation and municipalities, I employ comparative and dialectical methods, which, in combination, enable to identify common and specific features of territorial fiscal policy. Results The paper distinguishes focal points of territorial fiscal policy, in which the impact of subjective factors in the process of making budget decisions is most pronounced. It also offers areas for improving the inter-municipal cooperation and distributing the inter-budget transfers from the budget of the constituent entity of the Russian Federation, considering the need to identify and coordinate the interests of stakeholders. Conclusions The proposals will allow making reasonable changes in certain aspects of regional and municipal fiscal policy to improve the efficiency of inter-budget regulation, to spread the practice of self-taxation and initiative budgeting.
Kahneman D. Dumai medlenno... reshai bystro [Thinking, Fast and Slow]. Moscow, AST Publ., 2013, 653 p.
Kahneman D., Slovic P., Tversky A. Prinyatie reshenii v neopredelennosti: Pravila i predubezhdeniya [Judgment under Uncertainty: Heuristics and Biases]. Kharkiv, Gumanitarnyi tsentr Publ., 2005, 632 p.
Thaler R.H. Novaya povedencheskaya ekonomika. Pochemu lyudi narushayut pravila traditsionnoi ekonomiki i kak na etom zarabotat' [Misbehaving: The Making of Behavioral Economics]. Moscow, Eksmo Publ., 2017, 577 p.
Thaler R.H., Sunstein C.R. Nudge. Arkhitektura vybora: kak uluchshit' nashi resheniya o zdorovoe blagosostoyanii i schast'e [Nudge: Improving Decisions about Health, Wealth and Happiness]. Moscow, Mann, Ivanov i Ferber Publ., 2017, 240 p.
Belyanin A.V. [Richard Thaler and behavioral economics: From the lab experiments to the practice of nudging (Nobel Memorial Prize in Economic Sciences 2017)]. Voprosy Ekonomiki, 2018, no. 1, pp. 5–25. URL: Link (In Russ.)
Pigou A.C. Ekonomicheskaya teoriya blagosostoyaniya [The Economics of Welfare]. Moscow, Progress Publ., 1985, 512 p.
Vagin V.V., Gavrilova N.V., Shapovalova N.A. [Participatory budgeting in Russia: Best practices and current trends in development]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Journal,2015, no. 4, pp. 94–103. URL: Link (In Russ.)
Gavrilova N.V. [The current trends in participatory budgeting]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Journal,2016, no. 2, pp. 118–125. URL: Link (In Russ.)
Levina V.V. [Building and developing the mechanism of proactive budgeting]. Finansy i kredit = Finance and Credit, 2016, vol. 22, iss. 30, pp. 16–32. URL: Link (In Russ.)
Leonov S.N. [Problematic results and perspectives of the local self-government reform in Russia]. Prostranstvennaya ekonomika = Spatial Economics, 2017, no. 3, pp. 107–132. (In Russ.) URL: Link
Markvart E., Franzke J. [Modern territorial reforms of local self-government in Germany and Russia]. Prostranstvennaya ekonomika = Spatial Economics, 2017, no. 3, pp. 40–61. (In Russ.) URL: Link
Lavrikova Yu.G., Suvorova A.V., Kotlyarova S.N. [Problems and variants of multiplier effects calculation when implementing the program-and-project-based approach to integrated socio-economic development of municipalities]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, vol. 15, iss. 5, pp. 41–53. URL: Link (In Russ.)
Osipov A.V. [The soft budget constraints as economic institution]. Sovremennye nauchnye issledovaniya i innovatsii, 2015, no. 6-3. (In Russ.) URL: Link
Lavrov A.M., Dombrovskii E.A. [Decentralization of budget revenues: International comparisons and Russian prospects]. Finansy = Finance, 2016, no. 5, pp. 16–27. (In Russ.)
Zubarevich N. [Socioeconomic Development and Budget Status of Russian Regions in 2017]. Ekonomicheskoe razvitie Rossii = Russian Economic Developments, 2018, vol. 25, no. 2, pp. 69–77. URL: Link (In Russ.)
Leonov S.N. [Fiscal incentives for regional development]. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii = Izvestiya of Irkutsk State Economics Academy, 2016, vol. 26, no. 5, pp. 723–730. URL: Link (In Russ.)
Kadochnikov P., Sinelnikov-Murylev S., Trunin I., Chetverikov S. [Reform of fiscal federalism in Russia: The problem of soft budget constraints]. Ekonomicheskaya politika = Economic Policy,2006, no. 3, pp. 148–181. URL: Link (In Russ.)
Levina V.V. [Assessment of regional budget policy priorities]. Finansy i kredit = Finance and Credit,2012, vol. 18, iss. 30, pp. 10–17. URL: Link (In Russ.)
Shvetsov A.N. [Strategic planning of municipal development: Useful beginning or bureaucratic campaign?] Munitsipal'noe imushchestvo: ekonomika, pravo, upravlenie = Municipal Property: Economics, Law, Management, 2017, no. 3, pp. 3–7. (In Russ.)
Lavrov A.M., Begchin N.A. [Problems and prospects for the introduction of program-based budgets]. Finansy = Finance, 2016, no. 4, pp. 3–12. (In Russ.)