The Russian Tax System and Its International Competitiveness

The last several years were very favourable to the development of the Russian economy. While this has partly been the consequence of favourable conditions on the international markets for raw materials, the economic policy of President Vladimir Putin, including the tax reforms initiated at the end of the 1990s, also played a major role. Our authors examine in detail the effects of the tax reforms to date and point out the room for further improvements under Putin’s successor, Medvedev.     

Keynes at the periphery: Currency hierarchy and challenges for economic policy in emerging economies

While the post Keynesian literature offers a rather clear concept for growth-oriented policies, it is necessary to adapt them for peripheral emerging economies. We base our analysis of an appropriate Keynesian policy mix for these countries on the concept of currency hierarchy, where the currencies of peripheral emerging economies have a lower liquidity premium than the currencies of advanced economies. The international asymmetry related to the currency hierarchy, amplified by financial globalization, imposes major constraints to the adoption of Keynesian policies for these economies. Under these conditions, we argue that domestic economic policy coordination should lay a major focus on a low policy rate and, especially, a competitive exchange rate for obtaining, at least, a balanced current account, in order to prevent capital flows boom-bust-cycles with subsequent financial crises. We conclude that it is a rather ambitious and long-term goal to climb up the currency hierarchy, especially under the current condition of financial globalization.     

Leopold von Wieses „Gebildelehre“

Ohne Zusammenfassung     

Has Austria’s Accession to the EU Triggered an Increase in Competition? A Sectoral Markup Study

We estimate the pro-competitive effects of Austrias participation in the Single Market after its European Union (EU) accession in 1995 in terms of firms market power as measured by the Lerner index, using a sample of 46 industries and 7 industry groups, covering the period 1978–2001. In the framework of the markup estimation method suggested by Roeger (1995), we test for both an instantaneous structural break between 1993 and 1998 and also estimate logistic smooth transition models to take up the proposition that the regime shift is likely to have occurred gradually rather than as a big bang. In sum, the results provide no reason for being euphoric: Pronounced markup reductions were only found in three industry groups (mining and quarrying, wholesale and retail trade; financial services and real estate). At the more disaggregate level, the picture is mixed: Both increases and reductions in market power have been found.     

Gains from configuration: The transboundary protected area as a conservation tool

Nearly two hundred transboundary protected areas comprise a portion of the global conservation landscape the size of India, with further expansion anticipated. Proponents claim that transboundary protected areas outperform isolated protected areas in achieving conservation objectives, while regional case studies have led critics to challenge this claim. Empirical investigation into the relative performance of transboundary protected areas is fundamentally limited since these areas cannot be directly compared to the isolated protected areas that might otherwise have emerged in the same location. This paper develops a game theory model of park formation to compare counterfactual transboundary and isolated protected areas. The model suggests that under certain conditions, transboundary protected areas can achieve greater conservation and production objectives, even in the absence of international cooperative park management. The paper establishes five sufficient conditions for transboundary protected areas to provide greater national welfare, domestic conservation value, or global conservation value than counterfactual isolated protected areas. These conditions are tested for three common conservation objectives. The results suggest that when the objective of conservation is species persistence or interior habitat, conservation groups should encourage transboundary protected areas. However, when the objective of conservation is to extend reserve coverage to the maximum number of species, conservation groups should encourage protected areas where species richness is greatest, whether or not these areas span international borders.     

Index of Authors Volume 5, 2001

Authors Index

Index of Authors Volume 5, 2001