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on Transition Economics |
| By: | Guiying Laura WU (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological Univer- sity. Address: 14 Nanyang Drive, Singapore, 637332.); Qu FENG (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological Univer- sity. Address: 14 Nanyang Drive, Singapore, 637332.); Pei LI (Institute of Real Estate Studies, National University of Singapore.) |
| Abstract: | Budget deficit has been a common fiscal pressure facing Chinese cities since the 1994 fiscal reform. Meanwhile, land lease sales have become a signi?cant o¤-budgetary revenue to local governments since 2003. This paper investigates whether ?nancing budget deficit is an important driving force of the recent soaring housing prices when local governments function as the monopoly supplier of urban land. A conceptual framework is developed to illustrate a transmission mechanism from budget deficit to housing prices. This leads to an empirical model consisting of two simultaneous structural equations for housing prices and land prices. Using data for the 35 major Chinese cities from 2003 to 2011, an empirical exercise shows although budget deficit has a positive effect on land prices, it is the factors from demand side, such as amenities, income and the user cost of housing capital, that have been pulling up the housing prices. |
| Keywords: | Housing Prices, Land Prices, Public Finance, Chinese Economy |
| JEL: | R21 R31 H27 G10 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1409&r=tra |
| By: | Yulia Vymyatnina; Mikhail Pakhnin |
| Abstract: | The global financial crisis of 2007–2008, consequences of which continue to adversely affect the world economy, is often called a ‘Minsky crisis’. A prominent American economist Hyman Philip Minsky studied capitalist economic system paying special attention to its major properties, in particular, instability and high importance of money. He developed a consistent way to explain the nature of economic crises, which, according to him, are generated through financial mechanisms. Minsky’s financial instability hypothesis states that the fragility of financial system increases in periods of booms and thus crises arise from the very structure of business cycles. In this paper we give a short review of Minsky’s ideas and show that the last financial crisis could be persuasively explained in the framework of financial instability hypothesis. Moreover, we provide the extension of Minsky’s hypothesis and apply his insights to the ‘state-dominated economies’. Interesting and vivid examples of such economies are modern Russian economy (characterized by weak institutions, resource curse and dominance of state-related companies in the financial as well as non-financial sectors) and planned economy of the Soviet Union. We analyze the financial crisis 2008–2009 in Russia and the breakdown of the USSR and argue that these events could be interpreted along Minsky’s line of argument. |
| Keywords: | Hyman Minsky, financial crisis, financial instability hypothesis, endogenous money, planned economies, fall of the USSR, theory of money, business cycles, Minsky moment |
| JEL: | B50 E12 E32 E42 E44 E5 E60 G01 P2 |
| Date: | 2014–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0314&r=tra |
| By: | A. V. Leonidov; E. L. Rumyantsev |
| Abstract: | A model of contagion propagation in the Russian interbank market based on the real data is developed. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1409.1071&r=tra |
| By: | Amar Iqbal ANWAR; Mazhar Yasin MUGHAL |
| Abstract: | Why do Russian firms invest abroad? A firm level analysis |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2014-2015_1&r=tra |
| By: | Valery Tabakov |
| Abstract: | There are identified indicators of availability a non-market relations in the sphere of labor market in Ukraine. It is concluded that illegal tax money paid by legally working in Ukraine, as insurance premiums in the event of unemployment. It is concluded that increased pressure from the government on labor market regulators Ukraine established on a parity basis. There are formulated recommendations for the implementation of the principle of a free market economy in the regulation of the labor market of Ukraine. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1409.4387&r=tra |
| By: | Laura Gianfagna (IMT Institute for Advanced Studies Lucca); Emi Ferra (IMT Institute for Advanced Studies Lucca) |
| Abstract: | In this paper we analyze the fragility at the firm level of Bosnia-Herzegovina. This Country is trying to grow after having faced four years of conflict (1992-1995) and previous series of sources of political instability. In our analysis we take into account the fact that there exist two different Institutions (Federation and Republic) inside the same Country and many ethnic groups even though each institutional entity has one or two main ethnic group/s. We study the micro level of industrialization over six recent years (2007-2012) through official data of registered firms (source: Orbis). We aggregate them according to the Institution to which they belong. First we do a simple descriptive statistical analysis to have a general view of the firm level situation. After that, we run a regression with panel data in order to study the industrialization level of all the firms. More precisely, we focus on the analysis of the difference in industrialization due to the different Institutions inside the same fragile Country. After that we compare the micro data with aggregate data to check for significant difference. Actually, the existence of the Institutions seem to affect the level of industrialization, but could this be correlated with ethnic groups according to which the Srpska Republic and the Federation of Bosnia-Herzegovina are divided instead? The Federation of Bosnia-Herzegovina, which also have a higher number of firms, shows a downward operating turnover trend, while the Srpska Republic is quite flat. As a conclusion, our study, which wants to put light on the level of industrialization and Institutions after the Dayton agreement in 1995, actually explains how culture can influence both of them. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2014/36&r=tra |
| By: | Jaan Masso; Kärt Rõigas; Priit Vahter |
| Abstract: | Export experience of managers and other top specialists is among the key drivers of export decisions in firms. We show evidence of this regularity based on employer-employee level data from the manufacturing industry in Estonia. We find that hiring managers and other high-wage employees with prior experience in exporting to a specific geographical region is associated with a higher probability of export entry to that region. However, there is little evidence of significant effects on export intensity. Notably, the relationship between export experience and a firm’s export decisions is usually stronger if the prior export experience is from an exporter that is located nearby in the product space. Our findings suggest that the contribution of prior trade experience of employees and the firm’s productivity as drivers of export market entry are of comparable magnitude. |
| Keywords: | export experience, export entry, labour mobility, learning-to-export |
| JEL: | F10 F14 J31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mtk:febawb:95&r=tra |