The paper analyses Russian corruption as a specific “industry” of the Russian economy that is in many important respects influenced by the political system. The latter, in turn, is also being transformed due to corruption. The authors introduce and discuss the basic concepts used in the corruption analysis: everyday corruption, business corruption, corruption markets, strategies of bribetakers etc. The authors propose a comprehensive cultural classification of the types of corruption taking into account its everyday and business aspects, property rights enforcement, vertical and horizontal relations within the power and between power, citizens, and businessmen. In view of the proposed typology corruption dynamics is analyzed, as well as the dynamics of its socioeconomic and political conditions in Russia beginning from the prerevolutionary times and up to the present day. Basing upon the data taken from the mass surveys characteristics of the markets for everyday and business corruption are estimated in dynamics and the causes for the changes in their structure are indicated.
We present comparative analysis of the impact of centralized and decentralized corruption for private sector. Theory and empirical evidence point out to a «double jeopardy» of decentralized corruption which increases the burden of corruption upon private sector firms and weakens the incentives of bureaucracy to provide public production inputs, such as infrastructure. These outcomes are produced by simultaneous free-riding and the tragedy of the commons effects. The empirical part of the paper utilizes data of the Business Environment and Enterprise Performance project.
The paper analyzes the trend in the development of the creative economy in Russia and estimates the export potential of the Russian creative industries. The author demonstrates that modern concepts of cultural heritage preservation focus on increasing the efficiency of its use and that building creative potential and systematic support of the creative industries is becoming a key task of the strategic development of regions and municipalities in the post-industrial era.
In the article a simple model of stochastic credit bubble is proposed that has been growing over the recent years as a result of the global excess liquidity. That has given rise to formation of a random sequence of debt buyers clusters due to widespread practice of loan repayments with new debt issuance. Greatly increased positive feedbacks in the global market speed up the debt growth via structured financial instruments, and the debt bubble bursts at the critical value of global liquidity. The percolation process demonstrates how asset securitization and financial innovations might direct global system towards collapse. The model makes it possible to estimate the power law probability and time to a global collapse.
This paper presents the first in the Russian literature review of research, devoted to the roles of private and public investment in security in the economics of crime. We describe theoretical and empirical papers that deal with the strength of the deterrence and diversion effects, as well as the interaction between different security measures. Special attention is given to the roles that income inequality and institutional set-up play in the formation of the profile of security measures and the resulting distribution of crime. We also present empirical results based on the Russian regional data, which reveal a significant relationship between inequality and the ratio of private to public security measures, as well as substantial differences between more- and less democratic regions.
Various components of culture have recently been in the focus of economic research. Numerous empirical studies show that cultural norms, as well as religion and language, matter for economic development and have not only statistical but also economic significance. This paper considers various examples of how culture can affect individual values and behavior. It also deals with personal names as a key marker of one’s cultural identity. Overall, the paper contributes to the more profound understanding of a famous notion that “culture matters”, and helps clarify the mechanisms through which culture exerts its influence.