Year of Graduation
What Drives the Private Provision of Security: Evidence from Russian Regions
Comparative Social Research
This paper studies the influence of the public provision of security, institutional quality and income inequality on the private provision of security. It is argued that the effects of these factors are far from straightforward and should be thoroughly examined when variation in institutional quality and income inequality is high. To conduct empirical analysis, data on the regions of Russia between 2009 and 2016 are used. It is hypothesized that the effect of public security provision on private security provision varies with the quality of institutions. Weak institutions make the private provision of security a substitute for the public provision of security, whereas strong institutions promote complementarity between the two. The empirical results partly support the hypothesis, showing that the decrease in institutional quality fosters substitutability, whereas the increase in institutional quality results in the insignificant effect of public security provision on private security provision. It is also shown that income inequality increases the private provision of security when inequality is low and decreases it when inequality is high. This result can be attributed to economies of scale.