The article attempts to analyze the debt crisis in Portugal - as an essential component of the Great Recession in this country - using the financial fragility hypothesis developed by H. P. Minsky. Using a sample of 42 leading Portuguese non-financial private companies, the paper analyzes how the financing regimes used by these companies changed from 2001 to 2017. Before and at the height of the Great Recession, the share of firms with hedge financing mode was decreasing, while the share of firms with fragile financing regimes was increasing. Special attention is paid to how the Portuguese authorities applied austerity policies to deal with the debt crisis, and how they subsequently departed from the principles of this policy. The paper demonstrates that it was precisely after departing from the austerity doctrine of Portuguese non-financial private firms that largely managed to get rid of financial fragility.
The article discusses the normative documents associated with the introduction of Russian regions’ heads key performance indicators (KPI). Authors attract attention to negative contract externalities intensively discussed in the economic literature of recent decades. Negative contract externalities accompanying the incentive contracts are typically associated with multitask moral hazard. They can serve as an explanation of KPI failure in many business firms. The results of KPI application in the sphere of public administration will inevitably become even more disappointing.
Some Russian universities provide to their students tuition fee discount conditioned on the academic achievement. The paper examines the impact of this type of financial aid on student performance. Support is provided in the form of discounts to the tuition fee: its amount for the first year of study depends on the admission test results and its extension to 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 is in the upper part of the grade-point-average distribution.
The paper provides monetary estimates for Russia’s human capital. In its first part the two main methods for estimating the value of the stocks of human capital are discussed — cost based and income based, or the retrospective and prospective ones. Particular emphasis is placed upon the works by Jorgenson and Fraumeni (1989, 1992). Recently a lifetime income approach pioneered by Jorgenson and Fraumeni has been selected as the preferred methodology for the OECD Human Capital Project which made available monetary estimates of the stocks of human capital for 15 countries. A special section summarizes major findings of this Project and highlights its methodology which in the second part of the paper is used for estimating the value of human capital in Russia.
The paper examines the problem of legitimation of the privatization's outcomes in Russia and provides a critical appraisal of various political proposals for its resolution. The analysis proceeds from a distinction between two different types of ownership illegitimacy: definite and vague ones. The paper argues that the vague illegitimacy that has evolved in Russia is not an absolute obstacle for economic growth but rather an institutional birth trauma which is common for all post-socialist countries and which could be cured only by piecemeal approaching of relationships between strong and weak economic actors to principles of fair play.
This article studies the gender composition of corporate boards of Russian companies, including its relation to company performance. The analysis is based on a unique longitudinal dataset of virtually all Russian companies whose shares were traded on the stock market in 1998—2014. It shows a relatively small representation of women, just 12% of all the seats, while about 40% of the companies did not have any female director. At the same time, both the share of companies that appoint female directors and the share of female directors on boards show a clear upward trend. The econometric analysis suggests a positive link between the presence of female directors on boards and company performance, especially when firms appoint several, rather than one, female directors.