Using data on foreign borrowing, I identify Russian banks that were affected by the sudden stop of external financing caused by the Lehman Brothers’ collapse. Applying the difference-in-difference method, I compare these «affected» banks to «unaffected» ones and find that the Russian Central Bank’s (CBR) anti-crisis financial assistance primarily went to the former group. Tracing the impact of the CBR’s liquidity infusions on banks’ portfolio allocation decisions, I find that banks used CBR funds not only to pay out foreign debt, but also to accumulate cash deposits in non-resident banks. I also find that affected banks increased their holdings of market securities significantly more than unaffected ones, which suggests that the CBR’s bailout policies impacted their risk-taking strategies. While there was no significant difference in corporate lending growth between the two groups after the sudden stop, lending to borrowers with weaker banking relationships (individuals and entrepreneurs) decreased more among affected banks.
Using the General Equilibrium Model of the two-sector economy, the impact of consumer demand on the structure of employment, income inequality and the welfare of society is studied. It is assumed that the traditional sector is characterized by perfect competition, and single-product firms compete monopolistically in the high-tech sector and set wages as a result of negotiations with employees. In the model, labor is mobile within sectors, but not between sectors. It is shown that with the increase in the size of the market, the income tax rate and consumer spending on high-tech goods the level of unemployment in the economy increases. Unemployment remains at the equilibrium due to the imperfection of the labour market. Welfare shows a U-shaped dependence on consumer spending on high-tech goods. It is increasing as a fuinction of the market size and decreasing at the tax rate. In addition, with the increase in the elastisity of substitution between differentiated goods the difference between sectors declines, wages inequality disappears, the attractiveness of the high-tech sector shrinks, as far as the supply at the labor market and the unemployment level. The welfare of society is also declining. As a result, the recovery of social equality is due to the welfare of the society.
The author investigates the influence of school quality and neighborhood characteristics on housing prices in the districts of Moscow city. The research revealed that the Soviet model of intracity settlement - on a residence permit - has been destroyed, as well as connections between the real estate market and factors of social environment, including quality of schools and education provided there. Today there is a quasimarket of educational services. Market laws work only in private sector of education. Presence of quality school in the district is a significant factor of social environment for solvent individuals at choosing place of living in Moscow. Real estate buyers that prefer quality education, make a choice in the favor of private schools that in its turn has an impact on the cost of apartments
The interrelations between culture and economic development cause noticeable interest in the academic community in recent years, however a set of questions still remain open. In particular, there isn’t a lot of works about the interdependence of visual culture and economic practices. The paper shows the interdependence of accounting practices that ensure transparency in society, with the evolution of visual culture for the last one thousand years. Accounting history for this period is presented as a consequence of the stages which provide the increasing of transparency in economic units (or availability of information) to the actorsinterested in their activity – from owners to society in general. Visual culture is considered as set of objects suggesting their visual perception, and the technologies supporting them. Synchronism is shown between accounting revolutions and significant changes in visual culture and technologies: these are cultural innovations of the beginning of the 2nd millennium, period of the Renaissance, second half of XIX and end of the XX centuries. Joint periodization is offered for the accounting practices and visual culture, on the basis of changes in the mechanisms of transparency in society, i.e. technologies and instruments of information perception and cultural practices’ reproduction. It is shown that visual aspects and innovative technologies supporting them had the greatest impact on development of accounting from all aspects of culture, and this impact can be traced only in the context of the European culture.
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.
Existing research shows that the scopes of informal employment and hidden wages in Russia are relatively significant and increased even during the period of economic growth and tax reforms in 2000s. Consensus estimates of informal employment by different scholars cover 20-30% of the employed population. In addition, according to the results obtained in this study, from a fifth to one-third of the earnings of Russian employees receive hidden wages. The main contribution to the growth of Russian informal employment has been made by wage employment, related to the provision of personal services to individuals and households. A study of the structure of Russian informal employment and its characteristics shows that the growth of informal employment is associated with a decline in labor productivity and social protection and cannot be translated into the innovative economic growth. Previous research also shows that the growth of informal employment in Russia is primarily due to the imperfection of the institutional structures. International experience shows that prevalence of informal employment can only be lowered by implementing a comprehensive policy covering various areas of regulation, combining incentives and sanctions, including broader tasks for improving institutional environment, economic reforms, and changing social norms related to reducing the acceptability of informal relations. In this study, we develop a set of recommendations aimed at reducing informal employment and hidden wage, taking into account both international experience and recommendations, as well as the specifics of the causes of informal employment in Russia and the efforts already made by the Russian government in this direction.
In this paper we investigate regional public-private wage differentials in Russia. Using the October survey data for the period 2005–2013, we show that there are significant regional differences in wage gap. Subsequently, the relationship between variation of wage gap and socio-demographic regional characteristics was examined. The results show that regional differences in the wage gap are caused mainly by regional structure of employment and impact of the economic and budgetary capacity of regions. The study shows that the underpayment of public sector workers (relative to similar private sector workers) is greater in regions with high GDP per capita and a low share of transfers to the regional budget. Furthermore, a large concentration of public service consumers leads to a large cross-sector wage gap.
Elasticity of real wages with respect to unemployment is measured for Russia. The estimates are compared to those obtained for a sample of advanced and transition countries by other authors. In order to make our conclusions more robust 3 different specifications are used to construct ‘wage Phillips curve’. One model draws on data by region, two others draw on country-wide series. We find that regardless of the econometric specification real wage elasticity in Russia exceeds by far elasticity in all (or almost all) other countries for which comparable estimates are available. This evidences that high wage flexibility is an important salient feature of the Russian labor market. We obtain thus an explanation to the
The paper is devoted to assessment of an influence of state anti-crisis measures on activities of Russian companies in 2009, as well as analysis of various non-formal demands for companies made by the authorities in crisis. The authors formulate a number of lessons from anti-crisis measures for the government policy on post-crisis phase.
This article analyzes the extent and sectoral distribution of state ownership in the Russian economy. The different legal forms of state-owned enterprises (SOEs) in Russia are described. Official data on the evolution of the size of the state sector is provided, where the size is measured by the number of SOEs, their share in employment, fixed assets, investment and industrial production. Shortcomings of the official ownership classification are highlighted. Next, the sectoral distribution of SOEs and the degree of their internationalization is described. Finally, data on the SOEs that are listed on the stock market is presented. It gives a picture of a much stronger involvement of the government in medium and large sized companies than what can be inferred from the official data. In a second part (to be published in the next issue of this journal) the governance problems and performance effects of state ownership are discussed.
This article discusses the objectives and challenges for corporate governance of SOEs in Russia, and provides an international perspective of the performance of SOEs as compared to privately owned companies. Recent trends in the policy and management of state property are described. The problems of corporate governance in Russia are described in an agency perspective, and survey evidence on corporate governance and transparency of Russian SOEs is provided. Particular attention is given to the legal construction of the state corporation. The final section on the performance effects of state ownership summarizes the key contributions in the international economic literature in this field.