Intersectoral Markup Divergence
The article deals with the theory of monopolistic competition under demand uncertainty. The authors consider the economy with labor immobility consisting of the high-tech sector with monopolistic competition and the standard sector with perfect competition. Preferences between sectors are specified by the Cobb – Douglas production function. It is assumed that companies make output decisions under preferences uncertainty and consumers’ distribution by sectors will be known by the time of realization. It means that firms are informed about consumer demand with accuracy up to a multiplicative uncertainty which is generated by random parameters in the Cobb – Douglas utility function. The paper shows that demand uncertainty leads to consistent growth of prices and wages in high-tech sector in relation to salaries in the second sector. The impact of uncertainty on welfare is ambiguous. In particular, under the known expected value of uncertainty customers derive benefit from exaggerated companies’ expectations about clients’ desire to consume high-tech goods.
We propose a general equilibrium model to study the spatial inequality of consumers and firms within a city. Our mechanics rely on Dixit and Stiglitz monopolistic competition framework. The firms and consumers are continuously distributed across a two-dimensional space, there are iceberg-type costs both for goods shipping and workers commuting (hence firms have variable marginal costs based on their location). Our main interest is in the equilibrium spatial distribution of wealth. We construct a model that is both tractable and general enough to stand the test of real city empirics. We provide some theoretical statements, but mostly the results of numerical simulations with the real Moscow data.
Since the beginning of the market reforms in Russia, its integration into the world economy and the dependence on trends of the world economy development is steadily rising. New challenges from the world market and new opportunities for domestic producers, appeared after the liberalization of international trade, have become an important factor affecting the domestic economy. The research is devoted to estimation of general trends in trade development in Russia after it’s liberalization in 1991. The key questions we’d like to answer within the presented analysis are: 1) what were the economic conditions for development of trade in Russia after the launch of market reforms; 2) did the level of openness of the Russian Economy increased during the last 15 years; 3) whether international trade development caused long-term changes in production structure and relative prices in the Russian economy?
In recent years, more and more actively discussed questions about the prospects for the existence of the multilateral trading system as a system of WTO agreements and associated organizations and institutions that share and contribute to putting into practice the basic principles and rules of the WTO in the field of regulation of international trade. The global economic crisis, it is extremely light, and more specifically, is virtually absent, progress in the negotiations on further liberalization of market access for goods and services and increased fragmentation within the emerging blocks of individual countries, provoked a variety of speculation and predictions about the future of both the WTO, so and multilateral rules. In this connection, the authors set the goal to re-evaluate the main causes of the crisis talks on the agenda, designated in 2001 as the agenda for the Doha negotiations to try to assess the state of negotiations, little progress after the conference in Bali, and identify the next targets and prospects of the negotiation process
The article is devoted to the Asia-Pacifi c Economic Cooperation (APEC) Forum to be held and presided by the Russian Federation in early September 2012 in Vladivostok. The article gives the background for establishing the APEC, describes its goals and decisions adopted. It defi nes the APEC's place in the global economy as the largest association of States, which accounts for more than half of global GDP and which has set ambitious targets for establishing a free trade zone, liberalizing the investment climate and promoting regional integration. The article examines the major events in the global energy sector that triggered off the structural energy crisis in the early XXI century, causing the need for ensuring a global international energy security. The author suggests that the issue of energy security as a factor in implementing the strategic objectives of the APEC's economic and social development should be put on the agenda of the Forum. In this connection, the article analyzes the Draft Convention on Ensuring International Energy Security proposed by the Russian Federation for discussion and possible adoption. The article also puts forward several proposals for deepening regional integration to promote the development of the Far East and Siberia, and the creation of a new export base and promoting the Eastern vector of the Russian foreign economic cooperation policy.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.
The paper studies a problem of optimal insurer’s choice of a risk-sharing policy in a dynamic risk model, so-called Cramer-Lundberg process, over infinite time interval. Additional constraints are imposed on residual risks of insureds: on mean value or with probability one. An optimal control problem of minimizing a functional of the form of variation coefficient is solved. We show that: in the first case the optimum is achieved at stop loss insurance policies, in the second case the optimal insurance is a combination of stop loss and deductible policies. It is proved that the obtained results can be easily applied to problems with other optimization criteria: maximization of long-run utility and minimization of probability of a deviation from mean trajectory.