In the early twentieth century, a large number of households resettled from the European to the Asian part of the Russian Empire. We propose that this dramatic migration was rooted in institutional changes initiated by the 1906 Stolypin land titling reform. One might expect better property rights to decrease the propensity to migrate by improving economic conditions in the reform area. However, this titling reform increased land liquidity and actually promoted migration by easing financial constraints and decreasing opportunity costs. Treating the reform as a quasi-natural experiment, we employ difference-in-differences analysis on a panel of province-level data that describe migration and economic conditions. We find that the reform had a sizeable effect on migration. To verify the land liquidity effect, we exploit variation in the number of households participating in the reform. This direct measure of the reform mechanism estimates that land liquidity explains approximately 18% of migration during this period.
In this paper, we investigate the consumption Euler equation for the Russian households under Epstein and Zin (1989) preferences. Firstly, we investigate the impact of liquidity constraints and non-tradable assets on the Euler equation, and then use these theoretical results for the estimation and testing. We get the estimate of the elasticity of intertemporal substitution, which is significantly higher than zero and lower than one. We also show that borrowing constraints have a significant impact on the consumption dynamics, while the hypothesis about lending constraints is not supported by the data.
We examine 597 estimates of habit formation reported in 81 published studies. The mean reported strength of habit formation equals 0.4, but the estimates vary widely both within and across studies. We use Bayesian and frequentist model averaging to assign a pattern to this variance while taking into account model uncertainty. Studies employing macro data report consistently larger estimates than micro studies: 0.6 vs. 0.1 on average. The difference remains 0.5 when we control for 30 factors that reflect the context in which researchers obtain their estimates, such as data frequency, geographical coverage, variable definition, estimation approach, and publication characteristics. We also find that evidence for habits strengthens when researchers use lower data frequencies, employ log-linear approximation of the Euler equation, and utilize open-economy DSGE models. Moreover, estimates of habits differ systematically across countries.
Intertemporal equilibrium model with the finite number of agents-consumers is considered. Consumers exchange the only commodity with each other. They choose optimal consumption plan subject to budget constraint and liquidity constraint. Existence of efficient equilibrium is proven. The established fact of the uniqueness of equilibrium prices gives hope that equilibrium constraint could remove equilibrium indeterminacy problem of the stochastic Arrow-Debreu and derivative models.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.