Why do newer cities promise higher wages in Russia?
This paper documents the negative relationship between the age of cities and their average wages in Russia and a number of post-Soviet countries. To determine age-related urban characteristics responsible for this relationship, we develop a spatial equilibrium model as a framework to guide the interpretation of the regression estimates. Higher real wages in newer cities reflect both their disadvantages as places for living and their production advantages. The latter are related to their production amenities, higher shares of skilled workers, and more available natural resources. These advantages and disadvantages tend to disappear over time, which gives rise to income convergence.
Paper presents an optimal control model with the stocks of two resource: one is the stock of exhaustible resource (groundwater) and the other is the stock of waste water which is a by-product of water use. Waste water could be re-used but this resource has a higher marginal cost than the groundwater. The characteristics of effi cient water consumption vector and dynamics of groundwater and waste water stocks are analyzed under the assumption of limited storage capacity of waste water stocks. The sensitivity of effi cient vectors of exogenous parameters (groundwater stock and its refi ll, marginal cost of renewable substitute) is investigated.
Dynamic model of efficient allocation of water with three sources of water supply (groundwater, surface water and the recycling technology with limited capacity) is constructed and analyzed. It is shown that in case of binding capacity constraint we can abandon the use of groundwater at some moment and then revert to it some time in future. Efficient path could be decentralized under suitable water tariffs. Comparative analyses of water tariffs for the two users that differ only in terms of the availability of recycling technology are undertaken.
Russia has faced truly momentous changes and tensions over the last twenty years as the country adjusts to becoming a market economy. The case studies presented address: the challenge of a changing population distribution across this enormous country; the continuing mismatch between the dense form of what is being built in today’s cities and the aspirations of many to live in a rural idyll; and the momentous 2012 international competition in respect of the planned massive expansion of Moscow.
This article conducts a plant-level study of the factors affecting foreign direct investment (FDI) inflow to a large openning economy endowed with specific factor advantages. We conclude that the distribution of FDI in the Russian regions depends on market access and can be most notably by the knowledge-capital framework. Factor endowments built by natural resources are more successful in explaining the location decisions of export-platform affiliates. The impact of natural resources depends on how the availability of these resources is measured. The results reject the crowding-out effects of resource FDI and prove co-location mode, when service investments are attracted to resource-rich regions. Labour cost advantages better explain the preferences of non-trading service affiliates