bluuebunny/crossref_metadata_2025 huggingface dataset:
On the Causes of Socio-Economic Inequality Reproduction: What Does Resources Approach Show?
Authors: Avraamova E. , Maleva T.
Published: March 2019

This paper presents an attempt at answering the question of why the scope of socio-economic inequality stays the same in Russia despite the poverty rate reduction. The authors are looking for the causes of this phenomenon in the domain of social dynamics, i.e., in the nature of current vertical mobility mechanisms. To study these mechanisms the authors use resources approach. The information database of the research is the representative sample survey carried by the Institute for Social Analysis and Forecasting at RANEPA in 2013. The majority of the respondents have, in fact, vague idea of general parameters of the economic development of the country and of their personal prospects to adapt to possible changes. This state of things hinders the development of rational models of socio-economic behavior directed towards the growth of personal and family welfare and productive in terms of national economy development - these, eventually, would advance the reduction of socio-economic inequality. Various groups of population are predominantly oriented towards converting social capital viewed not in terms of trust and solidarity, but in terms of ties or connections and of personal loyalty.
Modeling of Firms Innovation Activitywithin the CDM approach
Authors: Teplykh G.
Published: March 2019

Revelation of the factors of corporate innovation activity and measurement of efficiency of innovations are vital topics in studies of modern economy. A character of innovative process has led to an increasing popularity of CDM approach. This allows to analyze the influence of innovative activity on firms economic performance. This paper is a review of the main empirical studies made within the CDM approach.
Incentive Domestic Gas Price Regulation in Russia: Comparative Analysis of Alternative “Price Cap” Indicators
Authors: Golovanova S.
Published: March 2019

Introduction of the price regulatory mechanism based on the principle of equal profitability of domestic and export gas sales is announced in Russia. In this article the “price cap” mechanism is considered as a form of incentive regulation; the experience of using the external market price as an indicator of the “fair” price level in antitrust enforcement is presented. Analyzing the existing wholesale gas price formation mechanisms around the world we identify alternative indicators of the external market price for gas and compare levels and volatilities of the “base” internal gas prices calculated on their basis with the use of retrospective data.
On the free investments Zone of the Eurasian Economic union
Authors: Kheyfets B.
Published: March 2019

The article deals with the Treaty on the Eurasian Economic Union (EAEU) in terms of its impact on deepening investment cooperation of the participating countries. Mutual investments of Belarus, Kazakhstan and Russia are estimated, the existing problems in this area are identified. The necessity to conclude the preferential investment agreement within future EAEU and create free investment zone that will give an impulse to all the system of economic interaction of the participating countries and also will open new opportunities for development of their cooperation with the third countries is shown.
Deadlock of integrations struggle in europe (analytical report)
Authors: Vinokurov E. , Kulik S. , Spartak A. , Yurgens I.
Published: March 2019

The report prepared for the Civil Initiatives Committee critically analyzes the EU “Eastern Partnership” project, its negative consequences for economic cooperation and partner relations in Big Europe. The study is based on expert assessments of financial and economic consequences of the current crisis in Ukraine, estimates of probable losses of the two most active members of “Eastern Partnership” - Ukraine and Moldova. The conclusion is made that it is expedient to establish a new basis for cooperation in Europe in order to end the Ukrainian crisis and overcome the “continental divide” in the region. The optimal decision will be reaching comprehensive agreements in the triangle EU-“Eastern Partnership” countries (first of all Ukraine)-Eurasian Economic Union with the perspective of signing all-embracing integration documents with the participation of all interested parties on the space from Lisbon to Vladivostok.
Integrated currency market of the eurasian economic spaceand settlements in national currencies: myths or reality?
Authors: Mishina V. , Khomyakova L.
Published: March 2019

The article highlights integration processes and the rising demand for the use of national currencies. The creation of an integrated currency market of the Eurasian Economic Space should enhance the role of national currencies. Formation of the single exchange space would generate direct market quotes and conduct exchange operations with national currencies directly without US dollar and euro, carry out cross-border payments in national currencies.
Impact of Merit-based Financial Aidon Student achievement
Authors: Poldin O. , Yudkevich M.
Published: March 2019

Some Russian universities provide tuition fee discount to their students conditioned on their academic achievement. The paper examines the impact of this type of financial aid on student performance. The amount of this discounts for the first academic year depends on the admission test results, and its extension for the second year depends on the student’s academic achievement in the first year. Using regression discontinuity design and quantile regression, we show that financial aid stimulates the performance of those fee-paying students, who are in the upper part of the grade-point-average distribution.
Evaluation of State Support for agricultureBased on WTO Methodology (The Case of Ural Region)
Authors: Maltseva V.
Published: March 2019

The article deals with the state support for agriculture in Russia according to WTO methodology on the Ural region example. WTO matrix of agricultural policy instruments, expert assessments and survey are used. The author proposes possible ways of transforming Russian state support for agriculture according to WTO obligations based on foreign practice.
The Second Start of Transformation in Ukraine?
Authors: Grigoryev L. , Buryak E. , Golyashev A.
Published: March 2019

The Ukrainian socio-economic crisis has been developing for years and resulted in the open socio-political turmoil and armed conflict. The Ukrainian population didn’t meet objectives of the post-Soviet transformation, and people were disillusioned for years, losing trust in the state and the Future. The role of workers’ remittances in the Ukrainian economy is underestimated, since the personal consumption and stability depend strongly on them. Social inequality, oligarchic control of key national assets contributed to instability as well as regional disparity, aggravated by identity differences. Economic growth is slow due to a long-term underinvestment, and prospects of improvement are dependent on some difficult institutional reforms, macro stability, open external markets and the elites’ consensus. Recovering after socio-economic and political crisis will need not merely time, but also governance quality improvement, institutions reform, the investment climate revival - that can be attributed as the second transformation in Ukraine.
On the Methodology of Cartel agreements analysis
Authors: Andreyashchenko E. , Zazdravnykh A.
Published: March 2019

This article is an attempt of summarizing key economic approaches to cartel agreements analysis, its stability, ways of estimating social consequences of cartel agreements. It is alleged that the traditional way of understanding the cartels’ role as completely negative is not accurate; this type of inter-corporate agreements may also bring positive effects on industrial markets. Typical limits of analytical apparatus, contradictions that appear while interpreting results of specific economic models are also represented in the article, as well as substantiation of a discrete role of pricing factor within the analysis of anti-competitive agreements.
Economic factors of Competition development in russian Gas industry
Authors: Sokolova E.
Published: March 2019

The article analyzes economic factors of competition development in Russian gas industry. The analysis is conducted on the basis of comparison of structural characteristics of competition with peculiarities of industrial markets in different stages of production process in the gas industry. The conclusion about the necessity to keep vertical integration with competition in the industry is maintained with the analysis of alternative opportunities of provision of the open access to pipelines for independent extracting companies.
Challenges of the Crisis: How to Measure Sustainable Development?
Authors: Bobylev S. , Zubarevich N. , Solovyeva S.
Published: March 2019

The article emphasizes the fact that traditional socio-economic indicators do not reflect the challenges of sustainable development adequately, and this is particularly true for the widely-used GDP indicator. In this connection the elaboration of sustainable development indicators is needed, taking into account economic, social and environmental factors. For Russia, adaptation and use of concepts and basic principles of calculation methods for adjusted net savings index (World Bank) and human development index (UNDP) as integral indicators can be promising. The authors have developed the sustainable development index for Russia, which aggregates and allows taking into account balanced economic, social and environmental indicators.
PFI OECD - Framework for Strong investment Policy
Authors: Koval A.
Published: March 2019

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.
Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?
Authors: Popov V.
Published: March 2019

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.
A new Reality: Russia and global Challenges
Authors: Medvedev D.
Published: March 2019

The article considers social and economic tasks that Russia faces in the context of the present-time global transformation. The key technological, economic, and social trends, which determine the contours of the post-crisis world, are analyzed. The long-term agenda of the country’s development aimed at securing a new quality of economic growth is proposed.
Debt Strategies of Russian Regions
Authors: Tabakh A. , Andreeva D.
Published: March 2019

The article considers debt management practices by Russian regions and municipalities, within a framework set by federal budgetary legislation and practices of state-controlled banks. Key drivers of regional and municipal debt policy are analyzed, and Russian regions are stratified by their debt policy. Current recession is likely to produce higher level of regional debt and changes in its structure, lowering reliance on market funding and decreasing variations in pursued debt policy.
Financial Systems and economic Development in the Russian Regions: A Comparative Analysis
Authors: Krinichansky K.
Published: March 2019

The paper identifies and assesses the closeness of the connection between incremental indicators of the financial development in the regions of Russia with the incremental regional GDP and the investment in fixed capital. It is shown that the positioning of the region as an independent participant of public debt market matters: the regional GDP and investment in fixed capital grow more rapidly in the regions which are regularly borrowing on the sub-federal bonds market. The paper also demonstrates that the poorly developed financial system in some regions have caused the imperfection of the growth mechanisms since the economy is not able to use the financial system’s functions.
Great Reshuffle of the World Economy (On the Book by A. A. Akaev "From the Epoch of Great Divergence to the Epoch of Great Convergence")
Authors: Klinov V.
Published: March 2019

A dramatic shift in the balance of economic power among advanced and developing countries is demonstrated by comparing GDP of the largest economies. The world economy prospects are also evaluated up to the middle of the current century. Major ways of economic growth models building are considered. Problems of long waves of economic development concept application for forecasting advances in technology and GDP growth per capita have been outlined.
Social Recourses of the Population under Conditions of Losing Economic Stability
Authors: Avraamova E. , Maleva T.
Published: March 2019

The loss of country’s socio-economic development stability puts on the agenda the problem of finding solutions contributing to the maintenance of Russian households’ welfare. The authors believe that these solutions lie in the broader area than applying various instruments of monetary support. The most effective solutions are related to the actualization of own resources of households that can act as a safety margin as well as a source of social development. The attempt to evaluate the households’ resource provision and highlight the significance of each resource enabling or creating barriers to the growth of households’ welfare is made in this article. On the basis of received conclusions social policy areas directed at preserving or enhancing the welfare are defined.
Trust: A National Project
Authors: Rozinskaya N. , Rozinskiy I.
Published: March 2019

This article deals with the genesis of general trust and social capital in contemporary Russia, which faces the external pressure. The low level of general trust is noted, its economic, social and everyday life implications are considered, an explanation of Russia’s lower than in western Europe level of trust is provided. Considering society’s level of trust and social capital as externalia, the authors conclude that there is a necessity to "produce" trust intentionally. Promotion of collective charity is proposed as a mechanism of such "production". It is stressed that in order to activate the potential of trust in a society, there is a need for ideological and symbolic basis linked to its history. Russian People’s Unity Day, understood as the birthday of Russian civil society, is proposed to be used in this respect.
Russian Agricultural Sector in the "War of Sanctions"
Authors: Frumkin B.
Published: March 2019

The article analyzes the consequences of the sanctions introduced by the West as well as by Russia (counter-sanctions) for Russian agri-food complex. The aftereffects are analyzed in three dimensions - foreign trade, production and market-consuming. The author concludes that sanctions have a negative impact on the availability of food for low-income population groups and on the qualityof some products and yet have not had explicitly positive effect on national producers. To achieve a positive effect for agri-food complex and well-being of the bulk of the population, additional political steps to improve the state supporting and functioning of the institutes of agri-food complex are needed.
Arguments for the Ruble Exchange Rate Management
Authors: Andryushin S.
Published: March 2019

The paper discusses the target guides and the Bank of Russia’s monetary policy operational instruments. Events of 2014-2015 showed that the inflation targeting regime is not an effective target guide of the Bank of Russia’s monetary policy. The key interest rate fails to reflect the proper price of holding and using of financial resources of households, financial and non-financial organizations. The floating exchange rate regime has not become an automatic mechanism of external shocks absorption, but intensifies the exchange rate volatility instead. The exchange rate management is the only effective regime for the current Bank of Russia’s monetary policy.
Offshore Business of Russian Residents(on the Books “Offshore Business in Foreign-Economic Activity”, “Capital Flow from Russia: Issues and Decisions”, “Deoffshorization of Russian Economy: Possibilities and Limits”)
Authors: Bulatov A.
Published: March 2019

The article reviews three books: “Offshore Business in Foreign-Economic Activity” ed. by G. M. Kostyunina, “Capital Flow from Russia: Issues and Decisions” by S. S. Sulakshin et al. and “Deoffshorization of Russian Economy: Possibilities and Limits” by B. A. Kheyfets, that analyze capital flow from Russia, especially in the form of offshore investments of Russian residents. The author offers some hypotheses about specificities of these investments. Russian investments are analyzed against the background of recent anti-offshore campaign in Russia and the world. Some recommendations on state regulation of offshore business of Russian residents are formulated.
Macroeconomic Reconciliation? (on the book by I. Ananiashvili and V. Papava “Laffer-keynesian Synthesis and Macroeconomic Equilibrium”)
Authors: Makasheva N.
Published: March 2019

The authors of the book reviewed here suggest the model of the macroeconomic equilibrium that unifies Keynesian and Laffer’s approaches to analyzing the effects of taxation on the output and tax revenues. The authors demonstrated the limitations of the simple Laffer model and developed a more realistic extension of this model that captures the influence of taxes on economic growth and provided estimates for various countries.
Assessing horizontal and Vertical Spillover Effects from Foreign Direct Investment in Russia
Authors: Fedorova E. , Barikhina Y.
Published: March 2019

FDI is believed to be very helpful for the national economy’s development. It is expected to increase the profitability and productivity of domestic companies. The analysis of balance sheets of Russian enterprises shows that for the period2004-2012 foreign investment caused horizontal and vertical spillovers in economic sectors. But this impact is ambiguous. Econometric modeling establishes the significant positive role of backward spillover. This means that national suppliers gain benefits from international interaction and become more effective due to technological and knowledge inflow from abroad.
Eurasian Economic union: Prospects and challenges for Development
Authors: Knobel A.
Published: March 2019

The paper is devoted to the analysis of development prospects and problems of Eurasian Economic Union (EAEU) of Russia, Kazakhstan, Belarus and Armenia. It considers integration problems inside EAEU, interactions of EAEU with other CIS countries and with countries from the rest of the world. The paper shows that the major integration challenge inside EAEU is the domination of the redistributive motive over the creative one. It estimates the value of the oil and gas transfer from Russia to other EAEU members and the influence of the Russian tax maneuver on this transfer. The paper shows the need in redistribution mechanism inside EAEU as a necessary condition for getting the potential positive economic effects of free trade with other countries. It also assesses the risks for EAEU due to Russian embargo for food imports from countries of the sanctions list and possible application of tariff in the trade with Ukraine.
Our Debts Heavy... (on the Monograph “Debt as a Phenomenon of the XXI Century”)
Authors: Leonova T.
Published: March 2019

Lending capital, credit and debt financing have been around and used to fuel economic development since the time immemorial. There are innumerable studies by international and Russian scholars that look into the evolution of these notions and lending instruments employed. The collective monograph edited by A. Porokhovsky and published by the MSU in 2014 intends to provide an all-around political and economic as well as applied review of the current debt issues faced by the global economy, national economies of Russia, U.S.A. and countries of the European Union. It uses a variety of academic and methodological postulates that range from the reproduction approach to modern macroeconomic doctrines.
Crisis Management under Economic Sanctions: Mission Impossible?
Authors: Afontsev S.
Published: March 2019

Economic sanctions against Russia form a completely new context for public and private efforts to cope with crisis trends in Russian economy. With limited access to global goods, capital, and technology markets, it can at best minimize costs of the crisis but not come back to the normal growth path. Strategies to find new trade partners and sources of capital outside the group of countries that have introduced economic sanctions against Russia are welcome, but their potential is rather limited. Under these circumstances, crisis management should be centered neither on the alleged ‘Russia’s pivot to the East’ nor on the wide-scale import substitution but on normalization of economic relations with key country partners, regaining currency stability, and structural reforms aimed at moving national economy away from commodity specialization.
From Economic Crisis to Economic Growth, or how to Prevent the Crisis from Turning into Stagnation
Authors: Ulyukaev A. , Mau V.
Published: March 2019

The paper deals with the roots and features of current Russian economic problems, compares 2008-2009 and 2014-2015 crises, factorizes the last one on three main components. The analysis includes the effects of sanctions against Russia on the current economic situation and structural problems that slow economic growth. Special attention is paid to examples of medium-term and long-term steps that can provide sustainable development of Russian economy.
The idea of secular stagnation: Three Versions
Authors: Kapeliushnikov R.
Published: March 2019

The paper critically analyses the idea of “secular stagnation” actively discussed in the recent economic literature. It examines the most popular versions of this idea offered by T. Cowen, R. Gordon and L. Summers. Key arguments include, respectively, the exhaustion of the main sources of economic growth, the emergence of new impediments to growth, and the output gap that cannot be reduced by traditional macroeconomic policy measures. The author concludes that in the next decades a slowdown of economic growth in the U.S. is highly probable although it can hardly be characterized as “stagnation”.
Modern Monetary Policy: Relevant criticism or Misunderstanding in the expert community?
Authors: Badasen P. , Isakov A. , Khazanov A.
Published: March 2019

In this paper we provide the analysis of monetary policy issues on which the expert community and the authorities do not have common point of view. We suggest arguments supporting the Bank of Russia’s position regarding the interpretation of current economic situation and we also respond to the critique concerning the inconsistency and the lack of transparency of monetary policy.
To Understand the Informal (on the Book BY V. L. Tambovtsev “Economics of Informal Institutions”)
Authors: Zaostrovtsev A.
Published: March 2019

The review considers the first attempt in the history of Russian economic thought to give a detailed analysis of informal institutions (IF). It recognizes that in general it was successful: the reader gets acquainted with the original classification of institutions (including informal ones) and their genesis. According to the reviewer the best achievement of the author is his interdisciplinary approach to the study of problems and, moreover, his bias on the achievements of social psychology because the model of human behavior in the economic mainstream is rather primitive. The book makes evident that namely this model limits the ability of economists to analyze IF. The reviewer also shares the author’s position that in the analysis of the IF genesis the economists should highlight the uncertainty and reject economic determinism. Further discussion of IF is hardly possible without referring to this book.
The Interaction between Public and Private Sector Wages
Authors: Ivanova M.
Published: March 2019

This paper studies the interactions between private and public sector wages. We raise questions about co-movement of these variables and leadership in wage setting in the short and long run. Using statistical and econometric tools we find (1) a strong and positive correlation of public and private sector wages; (2) evidence of private wage leadership in the long run. However, in the short run there are feedback effects from public wage setting (under specific political decisions) to private sector wages that affect the international competitiveness of the Russian economy.
The Superiority of Economists
Authors: Fourcade M. , Ollion E. , Algan Y.
Published: March 2019

In this essay, we analyze the dominant position of economics within the network of the social sciences in the United States. We begin by documenting the relative insularity of economics, using bibliometric data. Next we analyze the tight management of the field from the top down, which gives economics its characteristic hierarchical structure. Economists also distinguish themselves from other social scientists through their much better material situation (many teach in business schools, have external consulting activities), their more individualist worldviews, and their confidence in their discipline’s ability to fix the world’s problems. Taken together, these traits constitute what we call the superiority of economists, where economists’ objective supremacy is intimately linked with their subjective sense of authority and entitlement. While this superiority has certainly fueled economists’ practical involvement and their considerable influence over the economy, it has also exposed them more to conflicts of interests, political critique, even derision.
Which human qualities can economic liberalism be based on?
Authors: Avtonomov V.
Published: March 2019

The article asks which human qualities can serve as the base for a liberal economic policy. The author is looking for an answer to this question in the classical works of economic liberalism - in the books by F. Bastiat, L. von Mises, F. von Hayek, W. Eucken, and M. Friedman. The two main qualities can be summarized as follows: the relatively high rank of freedom among human values and rational utilitarian calculus. It is assumed that in those countries where the both human prerequisites are present the liberal policy (for instance, liberal reforms) can be self-supportive and may have good results. On the contrary, if the first prerequisite is missing and a liberal policy can be based only on rational calculus, the “paternalistic” liberalism prevails and chances for success are much smaller.
The Role of Foreign Participationin Soviet Industrialization: An Institutional View
Authors: Korneychuk B.
Published: March 2019

The foreign participation in USSR industrialization is considered to be a factor of institutional development of Soviet society. The paper considers the intellectual contribution of foreign specialists in the creation of important industrial projects. Foreign businessmen and specialists had considerable difficulties in their activity under influence of hostile institutional environment. Nevertheless, their professional success demonstrated the advantages of capitalism and conduced to dangerous spread of capitalist values into working class consciousness. Using repressions and propaganda, communist leaders institutionalized isolationism, i.e. watchful attitude to Western countries and belief in ability to solve any economic problem relying upon internal resources.
On inflation targeting
Authors: Glazyev S.
Published: March 2019

The article discusses the fundamental issues of monetary policy in the context of implemented by the Bank of Russia transition to inflation targeting. It is shown that the result of the actions of the monetary authorities was the growth of inflation, worsening management of the financial market, falling investment and business activity, loss of control over the main macroeconomic indicators. It is revealed that “inflation targeting” actually refers to limiting the tools of monetary policy to manipulations by the key rate. It is proved that in conditions of free international movement of capital this approach does not achieve the inflation target due to supercritical dependence of the money market on foreign speculators. The necessity of a systematic approach to monetary policy with a set of control parameters corresponding to the complexity of monetary circulation is underlined.
Unresolved issue of private property legitimacy in Russia
Authors: Grigoryev L. , Kurdin A.
Published: March 2019

Private property exists in Russia for almost 25 years. However, the legitimacy of established property rights and the legitimacy of private property as an institution remain ambiguous. Despite the change of generations and the improvement of living standards, numerous opinion polls show that the majority of Russians refers negatively not only to the privatization of the 1990s and its results, but also to private property in general. Positive forecasts on the adaptation of people to new reality do not come true. The authors analyze the reasons and consequences of private property illegitimacy and compare alternative ways of its legitimating. The main conclusion is the uselessness of any discretionary state intervention in this long-lasting process, while the focus should be put on the mitigation of inequality and the enforcement of formal institutions without any exceptions or privileges.
Planification: Potential and role in XXI century market economy
Authors: Buzgalin A. , Kolganov A.
Published: March 2019

The authors, basing on a critical analysis of the experience of planning during the 20th century in a number of countries of Europe and Asia, and also on the lessons from the economics of "real socialism", set out to substantiate their conclusions on the advisability of "reloading" this institution. The aim is to create planning mechanisms, suited to the new economy, that incorporate forecasting, projections, direct and indirect selective regulation and so forth into integral programs of economic development and that set a vector of development for particular limited spheres of what remains on the whole a market economy. New planning institutions presuppose a supersession of the forms of bureaucratic centralism and a reliance on network forms of organization of the subject and process of planning.
How to destroy a country. The economics and the politics of the Greek crisis (on the book by J. K. Galbraith “welcome to the poisoned chalice: the destruction of Greece and the future of europe” and not only)
Authors: Kołodko G. W.
Published: March 2019

The economic future of Europe depends on the combination of many processes, not only strictly economic ones. Currently, the situation is becoming quite complicated, with a number of particularly adverse tendencies overlapping and mutually strengthening one another. Adding to the classical problems involving the economic slowdown, high unemployment rate and insufficient innovation of the European economy, is the immigration crisis, the escalating terrorist threat and Brexit, as well as the risk of Grexit. The potential overlapping of Brexit and Grexit could be fatal for European integration. Solving the Greek syndrome requires a radical change in the way the European Union, especially Germany, approaches this problem. On the one hand, specific structural reforms and fiscal adjustments are necessary in Greece, but on the other hand, there’s a necessity for a conditional reduction of the Greek public debt by half. What is needed in the long run, is to ensure that some countries’ surpluses are not financed with others’ deficits and debts.
The role of subventions in Russian fiscal federalism
Authors: Yushkov A. , Oding N. , Savulkin L.
Published: March 2019

The article studies the role of subventions, one of the major types of inter-governmental transfers, in the Russian system of fiscal federalism. The authors demonstrate the structure, dynamics and major trends in the development of subventions over the last 15 years. The new typology of subventions, based on three criteria (financial volume, complexity of the procedure of determining the subvention value, frequency of changes made in these procedures), as well as the detailed classification of the major types of subventions is presented in the article. Finally, the authors draw conclusions on the future of subventions as an element of the Russian fiscal federalism.
Banking competition on the market for loans in russia: the impact on credit activity of banks and an effect of the economic crisis of 2008-2009
Authors: Mamonov M.
Published: March 2019

This paper provides a comprehensive assessment of banking competition on the market for loans in the Russian banking system connecting it to various phases of the business cycle in Russia. Our focus is on price competition, which is measured through the Lerner index of market power. Using Lerner index, we investigate, first, the levels of interest rate markups in the market for loans; second, the influence of these markups on credit activity of banks as well as their relation with the size of banks. Next, we compare our measured Lerner index with three additional competition indicators, i.e. H- statistics of Panzar and Rosse (mix of price and quantity competition), Boone indicator (quantity and quality competition) and Herfindahl-Hirschman Index (quantity competition). For our comparisons, we choose the time period of 2005 Q1 to2012 Q4, i.e. starting from one boom on the market for loans and ending with another boom so that between them there is one episode of macroeconomic and systemic banking crisis that could substantially change the strength of competition. Our estimations show that the impact of competition on credit activity of banks is nonlinear - when price competition is too strict or too weak the credit activity of banks becomes slower. Before the crisis of 2008-2009 increases of both price and quantity competition took place; however, during the crisis these competition improvements were offset by uneven access of banks to refinancing resources and the deterioration of borrowers’ creditworthiness that entailed the rise of risk premium in interest rates on loans. After the crisis, price competition turned back to upward trend again stimulated by the growing boom on the market for retail loans, whereas quantity competition remained rather constrained.
Eurasian Economic Union: A sober look
Authors: Vinokurov E.
Published: March 2019

The paper appraises current progress in establishing the Customs Union and the Eurasian Economic Union (EAEU). Although the progress has slowed down after the initial rapid advancement, the Union is better viewed not as an exception from the general rules of regional economic integration but rather as one of the functioning customs unions with its successes and stumbling blocs. The paper reviews the state of Eurasian institutions, the establishment of the single market of goods and services, the situation with mutual trade and investment flows among the member states, the ongoing work on the liquidation/unification of non-tariff barriers, the problems of the efficient coordination of macroeconomic policies, progress towards establishing an EAEU network of free trade areas with partners around the world, the state of the common labor market, and the dynamics of public opinion on Eurasian integration in the five member states.
State-owned enterprisesin the Russian market: Ownership structure and their role in the economy
Authors: Abramov A. , Radygin A. , Chernova M.
Published: March 2019

This article analyzes the ownership structure of companies with state participation and their role in the Russian economy. Using a sample of 114 largest companies we have estimated direct and indirect state participation as percentage of shareholdings which are in direct and indirect federal property in 2006-2014. We have used two methods for estimating the role of state-owned enterprises (SOEs), which allowed us to compare our results with those of OECD and Rosstat statistics for the broader sample of Russian companies in the public sector. This article reveals the decline of SOEs’ share in the capitalization of the Russian stock market as well as a slight increase of their share in total revenue and employment. The results show that public SOEs, demonstrate significantly higher productivity compared to non-public SOEs and private companies have a distinct advantage in productivity compared with public SOEs. Despite the significant advantages in productivity of private companies over the SOEs, over 9-year period we observed a reduction of this gap. This may be due to the fact that in conditions of high financial volatility and stagnation of the economy SOEs had certain advantages in terms of access to sources of long-term funding and other forms of state support. However, SOEs with indirect state control had a rapid growth in revenue and productivity in comparison with the rest of them. This may indicate the presence of a specific stock selection mechanism for transferring more effective SOEs from direct state ownership to indirect control as an alternative to privatization.
Language policy: An economics perspective
Authors: Kadochnikov D.
Published: March 2019

Economic theory of language policy treats a language as an economic phenomenon. A language situation is considered to be an economic, or market, situation, while language policy becomes an element of economic policies. The paper aims to systematize and to further develop theoretical and methodological aspects of this promising research field situated between economics and sociolinguistics.
Adventures of the optimum currency areas theory
Authors: Moiseev S.
Published: March 2019

The theory of optimum currency areas was created by three famous economists, R. Mandell, R. McKinnon and P. Kenen. They identified characteristics that potential participants of a currency area should possess in order to make it feasible to surrender the independent monetary policy and the adjustment of an exchange rate of a national currency. We consider the historical development of the optimum currency areas theory and review factors which led to renewal of the theory in the early 1990s. The article focuses on some important links between historic facts, development of the economic theory, and public policy.
Basel III: In quest for criteria and scenarios of the banking regulation reform advancement
Authors: Dzhagityan E.
Published: March 2019

The article looks into the spillover effect of the sweeping overhaul of financial regulation, also known as Basel III, for credit institutions. We found that new standards of capital adequacy will inevitably put downward pressure on ROE that in turn will further diminish post-crisis recovery of the banking industry. Under these circumstances, resilience of systemically important banks could be maintained through cost optimization, repricing, and return to homogeneity of their operating models, while application of macroprudential regulation by embedding it into new regulatory paradigm would minimize the effect of risk multiplication at micro level. Based on the research we develop recommendations for financial regulatory reform in Russia and for shaping integrated banking regulation in the Eurasian Economic Union (EAEU).
War and values: An empirical analysis
Authors: Edachev A. , Natkhov T. , Polishchuk L.
Published: March 2019

The paper considers the influence of war experience on the norms and values of the Great Patriotic War veterans and studies the intergenerational transmission of the values created by the war to the veterans’ descendants. The study conjectures that the war developed higher civic culture and fostered ability to collective action, altruism, and self-reliance. The war enlarged the “space of freedom” for its partici- pants, providing the new experiences of autonomy and grassroots self-organization and promoting the feelings of dignity and common belonging to the destiny of one’s native land. The paper shows that similar norms and values are, ceteris paribus, more common among the veterans’ (grand)children than among the other Russians.
Policy measures to improve energy efficiency in russian buildings: Forecast up to 2050
Authors: Bashmakov I.
Published: March 2019

The article presents a long-term forecast of costs and benefits associated with the implementation of additional energy efficiency policies in Russian buildings. In Russia, buildings are directly and indirectly responsible for 38% of primary energy use; at the same time, they have a large energy efficiency potential. The 10 assessed scenarios of implementing packages of policy measures to improve energy efficiency illustrate that it is possible to halve fossil fuel use while providing energy services to the buildings stock which is expected to double by 2050. Additional benefits are considered, such as reduced greenhouse gas emissions and air pollution and improved indoor comfort, employment growth, improved affordability of housing services for both residents and the public sector. The paper estimates the costs and economic benefits of the implementation of energy efficiency measures and policies in the buildings sector. It shows that a new model of economic growth in Russia should be based on improving the overall economic efficiency, including energy efficiency.
Kolodko G. V. Whither the world: The political economy of the future
Authors: Klinov V.
Published: March 2019

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Debates on monetary policy issues and economic situation: Searching for constructive comments
Authors: Mogilat A. , Achkasov Y. , Egorov A. , Klimovets A. , Donets S.
Published: March 2019

The article discusses approaches and instruments used in the Bank of Russia public analytical materials for analysis and forecast of macroeconomic conditions and monetary indicators. The authors focus on indicators of business cycle and monetary conditions, as crucial for monetary policy analysis. The attention is paid to issues most frequently discussed in scientific and expert literature, specifically, to new indicators and models presented in the Bank of Russia Monetary Policy Reports in 2015.
Real exchange rate targeting
Authors: Moiseev S. , Pantina I.
Published: March 2019

Developing countries typically exhibit a high degree of macroeconomic variablesinstability. This feature is particularly evident as regards the volatility of the real exchange rate. The concern with these destabilizing effects generatedby real exchange rate instability has prompted some developing countries to adopt real exchange rate targeting since the late 60’s. However, this policy produces an inflation bias. This paper reviews economic literature on theoretical frameworks and empirical evidences about effects of real exchange rate targeting.
Central banks’ mandate and objectives: Evolution and the crisis lessons
Authors: Drobyshevskiy S. , Kiyutsevskaya A. , Trunin P.
Published: March 2019

On the basis of studying the evolution of goals and objectives of the monetary authorities of a wide range of countries the authors argue the inexpediency of expanding the Bank of Russia’s mandate. It fits into international practice, and also meets the requirements and characteristics of the present stage of economic development. In the pursuit of price stability, the regulator not only maintains the stability of the national currency, as required by the its mandate, but also contributes to the acceleration of economic growth.
Prospects for dedollarization of the Russian economy
Authors: Tskhovrebov M.
Published: March 2019

The economists have so far paid little attention to the issues of the dollarization of the Russian economy and its financial system. This is inconsistent with the importance of the problem. As part of the solution of the problem of dedollarization the article proposes a proactive approach that involves, in addition to macroeconomic stabilization, changing prudential norms that regulate the banking sector, measures of institutional and fiscal nature which would increase the cost of foreign currency financial intermediation.
Measuring economic value of cultural institutions: cultural sector efficiency in public policy
Authors: Bychkova O.
Published: March 2019

Today, many cultural institutions like museums, theaters or libraries, are considered as major economic agents who can have a profound economic impact. This paper reviews different approaches to analyze economic value and efficiency of cultural institutions in public policy; it also discusses the major arguments that explain the evolving roles of those institutions in society. The shortcomings of the evaluation approaches are also discussed.
Challenges of Russian economic development and government economic policy
Authors: Ulyukaev A.
Published: March 2019

The article analyzes the problems faced by the Russian economy, and response by the government economic policy. The author considers measures to address four key tasks that will maximize long-term economic growth: the reduction of direct and transaction costs, creation of conditions for the transformation of savings into investments, fostering investment activity through the mechanisms of state support, as well as the removal of demand constraints.
The effects of liberal reforms in Russian criminal law on conviction and sentencing of economic offenders
Authors: Chetverikova I.
Published: March 2019

During the presidency of Dmitry Medvedev in 2008-2012 the Russian economy still remained highly regulated, so almost every economic activity could be recognized by the enforcement agencies as illegal. Under pressure of business some liberal reforms were launched in the criminal law and criminal procedure law related to economic crimes. The reforms were supposed to protect entrepreneurs from unwarranted prosecution and wrong conviction, and to make punishment less punitive. Using the data on 2 million defendants prosecuted for economic and property crimes in Russian criminal courts in 2009-2013, the paper examines how policy change affected the judicial decision making in criminal cases. Quasi-experimental design is used to test the impact of policy change on conviction and sentencing decisions. The results suggest that sentencing practices became more lenient rather due to the general changes in criminal law than the changes related specifically to economic offenders.
Unequal among equals: Why are developing countries less likely to win WTO disputes?
Authors: Kazun A. , Kazun A.
Published: March 2019

This article discusses the factors that affect the chances of a favorable resolution of claims to the WTO dispute settlement. Drawing on several hundreds of complaints received by the WTO since the establishment of the organization and till 2014, we demonstrate that the developing countries have a smaller probability of successful resolution in the dispute than the developed countries. This inequality can be explained by differences in the size of economies (GDP), but the paper shows that differences in the country’s experience of participation in WTO disputes have a higher predictive power.