The HSE ESI and short-term cycles in the Russian Economy
This paper investigates the ability of Russian business tendency surveys to identify cycli-cal turning points. Presently, when the Russian economy is characterized by concentrating un-certainty, growing gap in opinions and actions of entrepreneurs and decision-makers, im-portance of such qualitative surveys as information resource significantly increased. National business surveys program were launched in 1993; since 2009, regular large-scale sectoral sur-veys are carried out by the Higher School of Economics in co-operation with the Federal State Statistics Service. The study is focused on the issue: whether the aggregate dynamics of busi-ness confidence assessments in Russia conforms to the real economic situation? We have tried to determine to what extent business surveys data are sensitive to phase alternating in cyclical development of the national economy. For this purpose, we have constructed an integrated al-gorithm to build specific indicators, which cover as far as possible all information contained in the sectoral business surveys results. Identification of turning points in these indicators dynam-ics allows us to track the possible ‘averaged’ chronology of the cyclical phase alternation. In addition, we have evaluated retrospective turning points in GDP growth according to extracted cyclical profile in dynamics of the composite Economic Sentiment Indicator
This report investigates the predictability of cyclical turning points in Russia. For years, anyone interested in Russia had access to a full set of common tools for business cycle analysis, such as several composite leading indicators, a purchasing managers’ index, enterprise and consumer sentiment indexes, and so on. However, the 2008-09 world financial crisis spread throughout Russia quite unexpectedly for most politicians, businessmen and experts alike. Is it possible that none of existing indexes were able to say anything about the approaching decline? Using a simple “rule of thumb” proposed in this report one may easily see that in reality this was not the case. So then why did a more or less definite forecast provided by some indexes have no consequences for common economic sentiments in Russia? This report gives some answers to this question.
The objective of this study is to develop a system of leading indicators of the business cycle turning points on a wide range of countries, including Russia, over a more than thirty years period. We use a binary choice model with the dependent variable of the state of economy: the recession, there is no recession. These models allow us to assess how likely is the change of macroeconomic dynamics from positive to negative and vice versa. Empirical analysis suggests that the inclusion of financial sector variables into equation can significantly improve the predictive power of the models of the turning points of business cycles. At the same time, models with financial and real sector variables obtained in the paper outperform the “naïve” models based only on the leading indicator of GDP in the OECD methodology due to either a lower level of noise (recession model) or a higher predictive power (model of the recovery from recession).
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.