Of lessees,lessors, and discount rates and whether pigs have wings

Recent articles on leasing suggest five principles that should aid analysts to understand this durable, much misunderstood financial instrument. The principles are 1) the lessor must be happy too, 2) the operating inflows have nothing to do with the case, 3) financial, like physical, matter tends to be preserved, 4) debt is a function of after-tax flows, and 5) inability to use tax shelters cuts two ways. In this paper we illustrate these principles and use illustrations to demonstrate that each of these principles has merit. We argue as well that the impression, often left by the principles, that leasing seldom benefits all parties to the transaction is incorrect.     

TESTING OLIGOPOLISTIC AND OLIGOPSONISTIC BEHAVIOUR: AN APPLICATION TO THE US MEAT-PACKING INDUSTRY

This paper extends the conjectural approach in industrial organisation to the analysis of imperfections in output and factor markets. Starting from the specification of a production function, the econometric analysis is based on the formulation and estimation of a simultaneous-equation model consisting of a production function, first-order conditions associated with factor employment, and two conjectural elasticities to parameterise the industry's oligopoly and oligopsony equilibria. As an example, we provide an application to the US meat-packing industry. Our results suggest that the industry exercises market power in both the output (meat) market and the factor (live animal) market.     

Friend or Foe?— Farmer Perceptions of Biotechnologh1

This paper is the result of survey investigation the attitudes of Western Canadian farmers toward two biotechonological products, ENFIX-L and PB-50. Farmers were asked to rate both the importance and the performance of 21 attributes of the products. Soil depletion was found to be an important concern to many farmers. personal and environmental risks were less of a concern. Overall, it was found that the non-biotech-nological aspects of a product would prevail in purchasing decisions.     

Capital Account Liberalisation by China and the Effects on Global FDI and Trade

We model the partial liberalisation of the capital account by China using a dynamic computable general equilibrium model of the world economy. Our results indicate that a reduced capital controls on foreign direct investment (FDI) would lead to a significant increase in FDI capital in China and a significant reduction in the cost of capital in China relative to the rest of the world. Furthermore, we observe an increase in capital stocks in most regions, which benefits most regions in terms of GDP and GNP. The Chinese economy grows by 3.3% driven by a significant fall in the rental price of capital that, in turn, lowers domestic costs, causes a real depreciation of the exchange rate and thus increased exports relative to other regions. We also observe an across-the-board increase in the saving rate driven by the rise in the price of consumption relative to investment (saving) in all regions.     

Russian Nanotechnology Market: High-Technology Industry or Statistical Phenomenon

This article presents a medium-term forecast of the development of the Russian nanoindustry, taking into account the assumed transition of the industry from the formation stage to the investment growth stage. Problems associated with the estimated output volumes of products in the Russian nanoindustry are considered, since the trends recorded in the primary statistical data are very far from reflecting the real situation due to the imperfection of the system of statistics of nano-containing products, as well as a reduction of state funding and a decline in the intensity of research in the industry. It is concluded that a full-fledged industry has not been yet completely formed in Russia and it actually exists only as a statistical phenomenon; in addition, the project really set different objectives from the declared creation of a breakthrough high-technology branch.     

Modern Trends and Problems of Migration in a Russian Border Region: The Far East

The article has analyzed trends and problems in migration processes in the Far East of Russia in the 2010s. There are restrictions on population growth in the Far East due to migration. It has been determined that the implementation of modern policy decisions with regard to the Far East region does not create real prerequisites for increasing the incomes of the population. It has been proved that, in order to attract population to the Far East, it is necessary to institute economic development in the region that can increase incomes and make them comparable to other more successful federal districts.     

Comparative Assessment of Mortality Rate of the Population in Russian and Foreign Megacities

The article presents the results of a comparative analysis of mortality trends in two Russian capitals and two cities with population over one million, Krasnoyarsk and Rostov-on-Don, in comparison with foreign megacities (Berlin, Hong Kong, London, Los Angeles, New York, Paris, Singapore, Tokyo). From 1990 to 2015, in the Russian “model cities” the standardized mortality rates (SMR) for all causes on average decreased by almost a third: most in Moscow (44% for men and 42% for women) and less for Krasnoyarsk (22% for both men and women). An assessment of the statistical reliability of the decrease in SMR on the basis of long time series showed the absence of a positive dynamic of mortality from diseases of the digestive organs, mainly cirrhosis, which confirms the presence of the alcoholic component. Despite the sufficiently steady decline in mortality in the early 2000s, its level in Russian cities continues to significantly exceed the mortality rate in foreign megacities.