Privatisation in Russia Has Led to Criminalisation

Abstract
Russia has recently embarked on a dramatic program of privatisation as part of the process of shock therapy which aims to convert the command economy to a market economy. This program has been undertaken in the absence of a well-developed set of institutions needed for the proper functioning of a market economy. These institutions include a legal system, a related system of property rights, a credit system, a system of commercial banks, classified advertising, an accounting system and others including a sound currency and a social safety net. In the absence of these institutions the incentives facing agents in economic transactions have been perverted. This has led to criminalisation of the economy, dramatic falls in production, loss of confidence in all aspects of commerce, and political instability. The recent Russian experience of privatisation has important lessons for other economies in transition, for developing economies and for economic theory.     

Technological change and industry structure: A case study of the petroleum industry

This paper is a case study of the impact of an exogenous improvement of a process technology on the structure of the petroleum industry. The paper examines the role of three-dimensional seismology in bringing about the 1990s oil industry consolidation. This proposition is examined in the context of evolutionary economics and in a non-cooperative game theory, concluding with a reference to Steindl's theory of industry dynamics. The significance of this contribution lies chiefly in highlighting the fact that exogenous technological change can, under appropriate conditions, play a significant role in industry dynamics. This reference to the exogenous change in technology is a departure from the traditional consideration of endogenity of industry structure in relation to technological development and, therefore, a novelty. Secondly, the documentation of 3D seismology as a significant process technology of the petroleum industry is significant.     

Government financing in an endogenous growth model with financial market restrictions

Summary. In this paper, we develop an endogenous growth model with market regulations on explicitly modeled financial intermediaries to examine the effects of alternative government financing schemes on growth, inflation, and welfare. In the presence of binding regulation, there is always a unique equilibrium. We perform four alternative policy experiments; a change in the seigniorage tax rate, a change in the seigniorage tax base, a change in the income tax and a change in the fiscal-monetary policy mix. We find that in the presence of binding legal reserve requirements, a marginal increase in government spending need not result in a reduction in the rate of economic growth if it is financed with an increase in the seigniorage tax rate. Raising the seigniorage tax base by means of an increase in the reserve requirement retards growth and it has an ambiguous effect on inflation. An increase in income tax financed government spending also suppresses growth and raises inflation although not to the extent that the required seigniorage tax rate alternative would. Switching from seigniorage to income taxation as a source of government finance is growth reducing but deflationary. From a welfare perspective, the least distortionary way of financing an increase in the government spending requirements is by means of a marginal increase in the seigniorage tax rate. Under the specification of logarithmic preferences, the optimal tax structure is indeterminate. Received: March 20, 2000; revised version: June 26, 2001     

Global environmental problems and the strategic choice of technology

Reductions of environmentally harmful emissions are often a public good in a global context. For strategic reasons, countries may adopt a technology with high per unit cost of emission reduction, even if a technology with lower per unit cost is available at no extra cost. They thereby credibly commit themselves to not reducing emission much in the future. In a game of private voluntary provision of emission reduction, this commitment will make other countries increase their emission reductions. Also, in the case where countries cooperate in the future, such commitment gives a country a strategic advantage, because it shifts the disagreement point in a favorable direction.     

Domestic and international economic changes. Embarrassing correspondences

The breakdown of the socialist regimes of the east European countries has been incredibly fast. The subsequent changes in the international setting may imply much slower processes. Unified Germany is building up a vast area of influence ranging from the Baltic to the Adriatic sea. The former Moslem republics of the Soviet Union may fall instead under the influence of Turkey, supported by the USA. The presence of the USA in the Middle East and the American influence over Israel, Saudi Arabia, and possibly Iran, might help to build up a huge Moslem area controlled by the USA. This implies questioning the pre-existing national borderlines, a problem in which ethnic conflicts seem to be playing a role. The three great economic areas of the world exhibit a common tendency to become three strongly protected commercial areas. In the domestic structures of the main capitalist countries very similar changes are taking place: a general fall in the ideals of social justice, replaced by the ideology of individual effort and efficiency; a decline in the belief that any individual should be protected from the cradle to the grave, a belief replaced by the ideal of a scoiety made up of self-made men; a decline in the supply of schooling services, health care, old-age pensions and collective action in general, in favour of individual initiative and privatization. A consequence of such changes will be a sharp increase in personal and regional inequalities.     

Mindshift: The mental revolution we are in

It is by now a commonplace to say that today the world is in the midst of a revolution as profound as any we have ever experienced. It is, however, much less of a commonplace to specify precisely of what this revolution consists. The contention of this article is that the revolution is more than a mere shift in our industrial or technological base. Fundamentally, it is a change in underlying mental attitudes—how we conceive of the world. It is thus a shift in our values but at the same time much more basic than this alone.This article describes the nature of the change that is occuring in mental attitudes. However, it does not do so in a traditional way. Primarily, it does it by means of a fable. The reason is that the shift we are experiencing is also in part a shift in our aesthetic vision, that is, in the styles of discourse that we use to describe reality. In short, different conceptions of the world require different stylistic forms. The full nuances of a new era can not be captured by the forms of the past.     

North–South asymmetry,unilateral environmental policy and carbon tariffs

This paper focuses on the potential impact of a carbon tariff on carbon emissions, North–South trade and welfare. We use a North–South trade model, where North implements a unilateral environmental policy on domestic carbon-intensive industries followed by a carbon tariff on imports from South. Unlike the existing studies, we allow asymmetry in clean production technologies and marginal environmental damage. We show that a carbon tariff can reduce the global carbon emission via the use of a more advanced clean production technology in North, which increases the firm profit and welfare. However, improvement in welfare of North is associated with a decrease in global trade flows and welfare of South. We find that, in the presence of asymmetry in clean production technologies between North and South, a carbon tariff introduced by the North can eliminate carbon leakage, but the exports of South decrease below the pre-unilateral environmental policy level and hence North can potentially use a carbon tariff for trade protectionism in the name of reducing carbon leakage in South.     

Balancing centripetal and centrifugal forces in the entrepreneurial university: a study of 10 research centres in a technical university

In the recent interest for the so-called entrepreneurial university, there is a strong emphasis on academic (i.e. theoretical) knowledge to be used more effectively as a source of innovation and renewal in industry. Drawing on a theoretical framework developed by the literature theorist Mikhail Bakhtin and a study of 10 research centres in a major technical university, this paper suggests that rather than representing something radically new, the entrepreneurial university is a domain wherein traditional academic research interests and industry objectives are continuously negotiated and mutually adjusted. Seen in this view, the entrepreneurial university is what is always in a process of becoming, in flux and change, continuously under the influence of opposing and complementary goals and objectives. Therefore, the entrepreneurial university is not a solid state or an entrenched position but the effect of an attitude towards the role and purpose of the university in the so-called knowledge society.     

The stability of decision making in committees: The one-core

We study the stability of decision making in committees. A policy proposal introduced by a committee member is either adopted or abandoned in favor of a new proposal after deliberations. If a proposal is abandoned, it is in spite of the committee member who introduced it, who does not cooperate in any effort to defeat it. Shenoy (1980) proposes the one-core as a solution concept for this game, and shows that this solution may be empty. We provide a necessary and sufficient condition for the existence of a stable policy under the majority rule. This result highlights a trade-off between the size of a committee, the number of competing policy options, and the existence of a stable outcome. Our findings imply a tension between political stability and the existence of a large number of competing interests in democracies.     

Bank loan portfolios and the Canadian monetary transmission mechanism

Abstract .  Following a monetary tightening, bank loans to consumers decrease. This is true for both mortgage and non-mortgage loans, and it is true for a tightening by the Bank of Canada that is, and is not, a response to a tightening by the Federal Reserve System. In contrast, business loans increase following a monetary tightening. The 'perverse' response of business loans cannot be explained by an increase in the demand for funds due to a reduction in real activity. These results are consistent with a change in bank portfolio behaviour in favour of business loans in response to a monetary tightening.     

The economic impacts of drought on the economy of Iran: An integration of linear programming and macroeconometric modelling approaches

In this paper, we provide economy-wide estimates of the costs of drought in the cropping sector of the Iranian economy, using a linear programming model to estimate the direct costs on agriculture, and a macroeconometric model to trace the indirect impacts on the rest of the economy. The results indicate that a severe drought such as the one that occurred in the crop year 1999-2000 imposes a direct cost of 1605 million USD, equivalent to 30.3% of the total value added of the cropping sector in Iran. This, in turn, leads to a 12.7% reduction in the value added of other agricultural sub-sectors (livestock, fisheries and forestry). In the rest of the economy, the manufacturing and service sectors experience value added declines of 7.8 and 3.7%, respectively. In addition, there is a substantial decrease in investment in the agricultural, manufacturing and service sectors. Thus, such a drought reduces overall GDP by about 4.4%, and it would also result in decreased non-oil exports, increased food imports, and a rise in inflation. The results of some drought mitigation simulations are reported in brief. Such estimates strengthen the case for increased attention to drought strategies and management in agriculture in Iran and elsewhere.     

Are the Laffer curve and the green paradox mutually exclusive?

In this paper, we study the relationship between the Laffer curve and the green paradox in the context of a Ramsey model with endogenous labor supply in which pollution increases consumer demand (through a compensation effect). We find that—in the long run—the conditions under which a Laffer curve and a green paradox emerge are mutually exclusive. Indeed, the Laffer curve exists under a weak compensation effect, while the green paradox requires a strong effect. Also, we find that, in the short run, limit cycles may arise in the presence of a Laffer curve, while they never occur under a green paradox.     

Exchange rate pass-through and inflation targeting in Peru

It has been widely documented that the exchange rate pass-through to domestic inflation has decreased significantly in most of the industrialized world. As microeconomic factors cannot completely explain such a widespread phenomenon, a macroeconomic explanation linked to the inflationary environment—that a low and more stable inflation rate leads to a decrease in the pass-through—has gained popularity. Using a structural VAR framework, this paper presents evidence of a similar decline in the pass-through in Peru, a small open economy that gradually reduced inflation to international levels in order to adopt a fully fledged inflation targeting scheme in 2002. It is argued that the establishment of a credible regime of low inflation has been instrumental in driving the exchange rate pass-through down.     

非正式社会化对知识共享影响机制研究

知识是一种独特的有价值的关键资源,对知识的管理和有效利用对于增强组织核心竞争力有着至关重要的作用。但组织内知识流动并非易事,知识共享通常不是自然发生的。组织中员工知识共享水平的提高,需要员工之间进行沟通与交流,社会化为员工沟通交流提供了机会。非正式社会化作为发生在个人层面的社会化类型,对组织中人与人之间的知识共享行为具有非常重要的作用。对来自长江三角洲的13家企业问卷调查数据进行分析,搭建非正式社会化、社会交互作用、权力距离、知识共享4个变量之间的交互作用模型,采用探索性因子分析、验证性因子分析和结构方程分析方法,就非正式社会化对知识共享的影响机制进行了讨论。     

Nonlinear stochastic effects of substitution — an evolutionary approach

Technological innovations have been investigated by means of substitution and diffusion as well as evolution models, each of them dealing with different aspects of the innovation problem. In this paper we follow the well known research traditions on self-organisation models of complex systems. For the first time in the literature we show the existence of a specific niche effect, which may occur in the first stage of establishment of a new technology. Using a stochastic Master equation approach, we obtain analytical expressions for the survival probabilities of a new technology in smaller or larger ensembles. As a main result we demonstrate how a hyperselection situation might be removed in a stochastic picture and thresholds against the prevailing of a new technology in a step-by-step process can be overcome.     

传播与网络——“二奶”阿珍：一个在虚拟世界中建构主体的故事

“二奶”在当代中国社会已被认为是常见现象。然而，由于这一女性群体身份的“特殊性”，在公共场所谈论“二奶”几乎成为一种禁忌，而她们作为社会主体也鲜现于公共视野。2006年底，一篇题为《我在深圳当二奶》的帖子出现在某论坛上，由此引发了关于“二奶”的网络大讨论，作者阿珍也一夜成为网络明星。本文通过观察阿珍在虚拟世界里主体构建的过程，讨论中国两性关系所面临的现实。     

Reforming Social Security in a Transition Economy: The Case of Lithuania

This paper points out a number of problems associated with the existing pension system in Lithuania. Reforms are proposed, including (i) a substantial increase in the basic pension benefit rate, financed on a pay-as-you-go basis, provided universally, and regulated according to wage/price indexation; (ii) a significant cut in the tax contribution rate to the public pension system matched by a rise in the VAT; (iii) a rise in the retirement age to 65 for both men and women; and (iv) a gradual conversion to a private, funded, mandatory pension system to replace the earnings-related part of the current pension system.     

A model of technological breakthrough in the renewable energy sector

Models with induced technological change in the energy sector often predict a gradual expansion of renewable energies, and a substantial share of fossil fuels remaining in the energy mix through the end of our century. However, there are historical examples where new products or technologies expanded rapidly and achieved a high output in a relatively short period of time. This paper explores the possibility of a ‘technological breakthrough’ in the renewable energy sector, using a partial equilibrium model of energy generation with endogenous R&D. Our results indicate, that due to increasing returns-to-scale, a multiplicity of equilibria can arise. In the model, two stable states can coexist, one characterized by a lower and one by higher supply of renewable energy. The transition from the low-output to the high-output equilibrium is characterized by a discontinuous rise in R&D activity and capacity investments in the renewable energy sector. The transition can be triggered by a rise in world energy demand, by a drop in the supply of fossil fuels, or by policy intervention. Under market conditions, the transition occurs later than in the social optimum. Hence, we identify a market failure related to path-dependence and technological lock-in, that can justify a strong policy intervention initially. Paradoxically, well-intended energy-saving policies can actually lead to higher emissions, as they reduce the incentives to invest in renewable energies by having a cushioning effect on the energy price. Hence, these policies should be supplemented by other instruments that restore the incentives to invest in renewable energies. Finally, we discuss the influence of monopoly power in the market for innovations. We show that market power can alleviate the problem of technological lock-in, but creates a new market failure that reduces static efficiency.     

Railway transport liberalization in the European Union: Freight,labor and health toward the year 2020 in Spain

The year 2010 is a key year for European railway transport as it marks the liberalization of the railway sector in a context of economic crisis. The railway sector is a driving force behind the economy of any country. In the case of Spain, in particular, the sector is undergoing a process of liberalization following large public investments that have provided the country with one of the most extensive high-speed railway networks in Europe. Using a methodological approach that seeks a balance between future studies and constructivist studies on the interaction between technology and society, we examine the present and future consequences of railway transport liberalization, in the case-study of Spain, focusing on a key aspect of the process: changes in occupational health and safety conditions in a sector that must ensure full passenger, worker and freight safety. Through a comparison of actual risks, perceived risks and foreseeable risks, we analyze the main shortcomings of the liberalization model that is currently being implemented and strategies for dealing with foreseeable risks in a scenario of change.     

Minimum investment requirement,financial market imperfection and self-fulfilling belief

We develop a model in which a strategic complementarity in saving decisions arises due to a minimum investment requirement and financial market imperfection. We explore the role of self-fulling beliefs in determining the long run dynamics. The model exhibits a wide range of dynamic phenomena such as a poverty trap, a big push and a sunspot equilibrium, depending on the level of financial market imperfection. They account for excessive volatility and a sudden change in the saving rate and its macroeconomic consequences without any shocks to fundamentals.