We analyze optimal execution strategies when multiple traders are simultaneously involved in optimal execution. In this case, we obtain new trading strategies that follow from a direct extension of the mean variance approach of Grinold and Kahn, and Almgren and Chriss. However, as we show below, the proposed strategies can be quite different from the standard ones obtained in Grinold and Kahn, and Almgren and Chriss. This is because each trader (assumed to be rational) is trying to minimize her trading cost or "implementation shortfall" and therefore takes into account the price impacts caused by herself and all other traders. We also obtain a close form characterization for the dynamic Nash equilibrium in terms of the system of second-order ODEs, which can be solved explicitly. The resulting equilibrium strategies describe different types of predatory and defensive behavior, though aggregate order flow profile have some properties of standard Almgren, Chriss strategies, e.g. is monotoneous and convex. We show that the traders with smaller holdings are involved in predatory strategies, while traders with larger holdings tend to defend themselves against potential predators by following the delayed trading strategies. We also show that depending on liquidity and volatility parameters, predatory traders may be frontrunners or contrarian traders.
This paper analysis the impact of centralized monitoring enlargement in a large public organization on incentives for efficient activity of organization’s departments, which have different levels of financial autonomy. We analyze the data of the large public organization during 2008-2013. The efficiency of departments’ activity was measured by competiveness of their procurements and delays in contract executions. All departments of the organization were classified as budget-funded departments and autonomous departments that have more financial autonomy. From the wide spectrum of procured goods we have selected two types of procured services that were often procured by autonomous and budget-funded departments: printing services and data collection services.
The results show that during the period of standard monitoring, the autonomous departments had more efficient procurements compared to the budget-funded departments. After enlargement of centralized monitoring the differences in performance indicators are insignificant for these types of departments. Our explanation for this result is that enlargement of centralized monitoring increases efficiency in budget-funded departments, but it may produce additional costs and decrease incentives for autonomous departments.
The number of free trade agreements (FTA) in international trade is rapidly growing and it makes them the main tool for countries’ trade liberalization. Created in the 2015, the Eurasian economic union (EAEU), that has the competence of the customs union, also started actively building a network of FTAs. To date, four such preferential agreements and one non-preferential trade agreement are in force, and at least three other agreements are expected to be signed in 2020-2025.
Some specific features can be attributed to the emerging network that will impact the economic development of the EAEU Member States and will allow its partners to adapt their foreign trade policies accordingly. The geography of the EAEU agreements demonstrates the intention to create a wide network of FTA covering primarily the Eastern hemisphere, with the potential to extend it to all major regions. The EAEU partners are generally small States and not the strongest economies, and the content of FTA agreements is not yet as broad and deep as, for example, concluded by the EU. It is noteworthy that the system almost does not contain WTO-extra provisions. However, the EAEU is only at the beginning of building an FTA network that may change the EAEU position in the international trade system.
The main goal of the article is to track the distinct features of this new EAEU trade policy and to identify specifics and prospects for the emerging FTA network, based on the already concluded agreements and the coming ones.
Estimating mincer-type wage equations on the micro-data of Occupational Wages Survey, 2007 we first receive estimates for returns to higher education for all regions-subjects of Russian Federation. Our results show that interregional differentces in returns are very large in Russia. Returns to higher education received from the estimation of basic mincerian equation lie in the range from 32 to 140% (from the average wage of workers with secondary education), and the country level of return equals to 65%. Variation in estimates based on an augmented wage equation (which additionally includes industries and ownership) is much lower, but it still remains quite substantial: estimates differ from about 60 to 150%, and the country level of return equals to 90%. In this regard, the standard approach producing one estimate of return to education for the whole country seems to be a serious simplification, and an answer to the question what is the level of return to education in Russia is no more trivial.
отдача от образования, РЕГИОНЫ, РОССИЯ, Return to Education, Regions, Russia
The paper uses meta-analysis to investigate the evolution of returns to education in Russia during the economic transition. We present the evidence of strong increase in returns to education in the 1990s. The returns to education peaked at 8% per additional year of schooling in the early 2000s. Since the mid-2000s the positive trend has been reversed. We find that the estimated returns are sensitive to sample design, specification and estimation methods. On average the estimated returns are higher if one uses imputed (instead of actual) years of education and estimates earnings equation with the OLS. Among covariates, the form of ownership and settlement type (urban/ rural) has the largest effect on the estimated returns to education. Regional variables have significant impact on the estimated returns only being included into the earnings equation at the oblast (province) level.
The position and behavior of adult individuals in the labor market is usually linked with the presence of children. Numerous studies show that mothers suffer a wage penalty relative to women without children. A less studied issue is whether men’s earnings are somehow affected by children. In this paper, we analyze the relationship between wages and having children among Russian men, using RLMS–HSE panel micro-data of 2010–2018. In this period, fathers earned, on average, 25% more than non-fathers, which suggests a high wage premium for fatherhood in the Russian labor market. Estimating wage equations with individual fixed effects we show, however, that this advantage vanishes after controlling for differences between fathers and non-fathers in socio-demographic and unobserved individual characteristics. This means that the observed gap is caused by (self-)selection of initially more productive men in fatherhood. Esti-mating models that take into account the age and number of children as well as their biological relationship with men still allows to identify a 2,5–3% wage premium for one biological child under the age of 3 years. We show that this premium is not related to a possible reverse influ-ence of men’s wage growth on the decision to have a child and may be partly explained by the increased gender division of labor within the household after the appearance of a child. Addi-tionally, we find that Russian men receive a marriage premium of about 3%