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The Discontinuous Development Trend of Structuralism: Alternative Tradition of Economic Analysis (R. Prebisch, Y. Yaremenko, G. Mensch, and others)

The Discontinuous Development Trend of Structuralism: Alternative Tradition of Economic Analysis (R. Prebisch, Y. Yaremenko, G. Mensch, and others)

Journal of Economic Regulation, , Vol. 8 (no. 1),

The main factors of economic growth in the mainstream of the economic theory are capital and labor, and the rates of growth are determined by the rate of savings. Alternative tradition of the economic analyses does accent on the structural changes that are taking place in the economic system. This restructuring is the main factor of development.
 
This paper is a brief outline of the formation and evolution of the structuralist theory of economic growth. Elements of structuralism are standing yet in the concept of expanded reproduction of Marx, theory of comparative costs Ricardo, the model Solow. The characteristic of the concept of unequal exchange in international trade associated with the hypothesis Prebisch – Singer, describes the formation of a global system of «center – periphery».
 
We introduce a distinction between the structuralist and neo-classical theories of economic growth associated with the discussions in the Soviet Union on the role of «extensive» and «intensive» growth factors. Considered in detail the model of «multi-level economy» Yuri Yaremenko as compared to the «economy of shortage» J. Kornai. The heterogeneity of the technological structure is present both in Soviet economy, as in the market, capitalist economy. The last situation was demonstrated by the concept of «technological stalemate» G. Mensch.
 
As the impact of international economic relations on the economic development of the role of structural analysis will increase. The need for industries with increasing and diminishing returns, as well as the establishment of appropriate structural policies in their work justifies E. Reinert. His concept complements views Y. Yaremenko and G. Mensch on economic development.

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Behavioral Effects in Forming the Preferences of the Economic Selection of the Economic Subject

Behavioral Effects in Forming the Preferences of the Economic Selection of the Economic Subject

Journal of Economic Regulation, , Vol. 8 (no. 1),

An attempt has been made to substantiate the behavioral features of the economic choice of an economic entity in the context of the decision-making environment transformation, and also to study their influence on the forming subjective preferences. At the same time, the behavioral paradigm is identified as a basic theoretical construct, which makes it possible to identify the main irrationalizing factors. Based on the study of the conceptual provisions of the behavioral paradigm, it was concluded that the preferences of the economic entity in the process of implementing the economic choice are formed under the influence of motivational and cognitive predictors, which limit the rationality of the economic entity. Deviating from rational criteria towards irrational, the economic entity shapes its preferences on the basis of economic and non-economic criteria, systematically making mistakes in the context of the influence of cognitive distortions manifested in decision-making under modern conditions. Based on the findings, the author constructs a model of economic choice, taking into account behavioral predictors. Among the most important cognitive distortions are herd instinct, professional deformation, "curse of knowledge", bias toward information retrieval, error of substantiation of assessment, bias of confirmation, neglect of formalized methods of cognition, conservatism, preferences of personified trust and heuristics of asymmetric perception.

Views: 783

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Man, Economy and Free Market: the Approach of M.N. Rothbard

Man, Economy and Free Market: the Approach of M.N. Rothbard

Journal of Economic Regulation, , Vol. 8 (no. 1),

The aims of the paper are to highlight the main contributions of Rothbard to the development of the economic science through analyzing his most significant works and to explain his unique influence on the intellectual tradition of the Austrian School of Economics. In the XXI century, the Austrian School is exerting a significant influence on the development of economics and its application to the realm of public policy. More economists respond positively towards fundamental Austrian ideas and the academic journals are more accepting of the works in this line of thought. In the past century only a few economists were aware of the Austrian’s school existence and many disagreed with its methods and conclusions. At the present, the Austrian school’s ideas are situated much closer to the economic mainstream, because the accepted paradigm grew to accept some of its ideas.
 
When mentioning the Austrian School in the Russian economic discussions, mostly the names of Friedrich Hayek or Ludwig von Mises or Israel Kirzner can be mentioned. However, many important scholars are still being left out. One of those scholars is Murray Newton Rothbard. In 2016, it is 90 years since his birth. Few economists are capable of creating such a great volume of work that can provide a heated discussion twenty years after the author’s death.
 
Rothbard, being the student of Mises, became a leading representative of the Austrian School in the United States. He built upon and significantly expanded the economic analysis of his mentor in his fundamental work “Man, Economy and State with Power and Market” (2004). Rothbard gained recognition among the Austrian paradigm due to his innovative developments in questions of methodology, utility, welfare, monopoly and money. He also successfully applied the Austrian theory to explain such important historical events as the Great Depression in his book «America’s Great Depression» (2000) or the genesis and development of the American banking business in his «Mystery of Banking» (2008).
 
A detailed study of Rothbard’s ideas opens up new paths of development and re-thinking of economics not only as a science, but its practical conclusions, representing a radically different point of view on the functioning of the free market.

Views: 733

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Transactional Infrastructure of the Economy: the Evolution of Concepts and Synthesis of Definitions

Transactional Infrastructure of the Economy: the Evolution of Concepts and Synthesis of Definitions

Journal of Economic Regulation, , Vol. 8 (no. 1),

The overview of evolution of market infrastructure concepts is provided, the first concepts of institutional infrastructure are revealed in the paper. Evolutionarily developed narrowing of essence of infrastructure in connection with the priority analysis of its physical (material and technological) components is proved. It ignores the fact that transactional resources, being drivers (driving forces) of economic systems evolution, in turn evolve, becoming harder and harder, combining increase in efficiency of the elements and strengthening of heterogeneity and discrepancy of their structure. Transactional evolution of economy in general and evolution of separate transactional resources of production are the perspective directions of the special analysis. Transactional infrastructure is considered as the integrated complex of institutional, organizational (relational) and information infrastructures. The problems of the first concepts of transactional infrastructure connected with difficulties of differentiation of its subsystems always operating jointly are revealed. Prospect of transition from the isolated analysis of separate resources of transactional type (institutes, organizations, information, social capital, trust, etc.) to studying corresponding specific software infrastructures and to the system analysis of integrated transactional infrastructure of economy are argued. The transactional sector (as set of the specialized industries and the appropriate collective and individual subjects providing with resources market transaction) is offered to be considered as transactional structure of economy. Transactional infrastructure is treated as critically significant factor of economic evolution which in the conditions of post-industrial type of economy gradually purchases transactional nature.

Views: 809

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On the Influence of the Industrialization Genesis on Modern Strategy of Industrial Policy in Russia: History and Economic Analisys

On the Influence of the Industrialization Genesis on Modern Strategy of Industrial Policy in Russia: History and Economic Analisys

Journal of Economic Regulation, , Vol. 8 (no. 1),

The authors examine the industrialization process in Russia for more than a hundred years, the duration and quality parameters associated with its institutional features. The authors also focus on the relevance of the chosen theme because of the formation of new industrial policy institutions. The hypothesis of the study is based on identifying a set of basis factors of building effective institutions: system, decentralization mechanism, clustering, given a set of groups of interests of subjects of industrial policy implementation. Institutions of new industrial policy implementation in contemporary Russia are focused on achieving multifaceted tasks on a temporary basis, the level of implementation, the degree of relevance, therefore, the conclusion regarding the effective implementation of the strategy of economic development of modern Russia, which should include the following institutions: government programs, effective transparent public procurement, institutional design through the creation of specialized, diversified institutions of industrial-innovative development. Named structural elements must be systematically subordinated to the interests of macro-, meso- and micro levels of economic system. Special importance must have experience of building the institutional system of the new industrial policy, which gives effective results on the social-economic development.

Views: 898

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Economic Policy of Import Substitution: Institutional Conditions and Imperative of Efficiency

Economic Policy of Import Substitution: Institutional Conditions and Imperative of Efficiency

Journal of Economic Regulation, , Vol. 8 (no. 1),

The paper describes the theoretical and applied aspects of the economic policy of import substitution, the imperatives of its effectiveness, institutional conditions and prospects for the policy of import substitution in the Russian economy. Modern approaches to the policy of import substitution, which reflect the real macroeconomic processes and have a scientific and advisory capacity for forward movement of the national economic system and economics allow us to consider import substitution as an element of national economic development strategy, which shows the internal processes of production, consumption and state regulation mechanisms within certain trajectory of economic dynamics. The paper shows that the key to the implementation of the import substitution policy is to analyze the structural and institutional conditions that will ensure high rates of economic and social growth of the national economy. The main functions of the state policy in the implementation of import substitution are stimulating domestic demand and private investment in the modernization of national import-substitution industries, the formation of conditions for sustainable long-term development of domestic industrial complex as an alternative raw material economy. Determination of the economic policy of import substitution vector is an actual, complex problem that requires both structural management decisions, as well as new theoretical justification process of import substitution as an effective long-term national development strategy.

Views: 947

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Maternity Capital as an Economic Factor, Forming Social Expectation of Women with Two or More Children

Maternity Capital as an Economic Factor, Forming Social Expectation of Women with Two or More Children

Journal of Economic Regulation, , Vol. 8 (no. 1),

The paper presents the results of sociological study devoted to the evaluation of the social expectations of women associated with the realization of their right to maternity capital. Different social attitudes and intentions of 308 women who have two and more children with respect to realization of the program of the maternity capital were investigated. Characteristics of cognitive, emotional and behavioral readiness to participate in the governmental program of increasing fertility were assessed. The results confirm the adequacy and objectivity of the social expectations of women. They made the decision about the birth of a second child without taking into account the expected payment of the maternity capital (for 33.8% respondents maternity capital had “no meaning”; for 36.4% respondents it was just a “pleasant additional payment”). The reproductive behavior of women was based on family traditions (91.9% respondents were born in big families with two or more children) and awareness of their personal responsibility for bearing and raising children (45.8% respondents were ready “for any difficulties for their children”, 23.1% respondents consider their children as “happiness and meaning of their lives”). However, 22.0% of women made their decision about the birth of the second child with expectations for the maternity capital. They were the women from the low-income families (29.6%). Promotion the childbirth in low-income families may lead to the increasing number of dysfunctional families and children who find themselves in difficult life situations. All this facts may lead to different social problems in the future.

Views: 1017

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Integrated Assessment of the Functioning of the Centre of Competenceas as a Public Administration Instrument

Integrated Assessment of the Functioning of the Centre of Competenceas as a Public Administration Instrument

Journal of Economic Regulation, , Vol. 8 (no. 1),

The paper presents the researching results related to integrated quantitative and qualitative evaluation of the management competence center efficiency as a tool for public administration. The state of the public administration system at the present stage of its development is analyzed, which revealed a number of inconsistencies, the occurrence of which is associated with the current dysfunctional public administration tools. Elimination of the revealed contradictions will contribute to the implementation of management competence center as a special structural unit, providing control of the intellectual potential of the expert community, aimed at addressing the socially significant tasks. Assessment of competence management center efficiency involves extensive quantitative evaluation of the effectiveness of budget expenditures and quality of resource efficiency, providing social and economic growth for the period.

Views: 674

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The Import-Substitution Adaptation of Power Engineering Programs

The Import-Substitution Adaptation of Power Engineering Programs

Journal of Economic Regulation, , Vol. 8 (no. 1),

The realization problem of the import substitution policy in the context of existing programs for the individual branches development is considered in the paper on the example of power engineering. There is a contradiction to the objective of programs reflected in the process of alignment, which consists in stabilizing on the one hand and on the development of innovative on the other hand. In addition, the analysis of the implementation of power engineering of the Russian Federation for 2010-2020 and up to 2030 revealed significant shortcomings and deficiencies that reinforce the negative trends of this pairing. Classification of problems and purpose allowed choosing the most significant conceptual directions, methodologically based on the ideas of self-organization and balance, which can get instrumentality software by adapting programs for the development of power engineering in the system of the European model of Industry 4.0. As a fundamental position addresses the need for such a project, which would ensure the greatest impact with limited resources, including public funding, which lags far behind foreign. It is proposed to transform the efforts to implement the existing strategies of industry development in view of the policy of import substitution based on the implementation of the program of production of a balanced range of innovative products and providing replacement of imported equipment and the formation of the technological basis for the development of the industry

Views: 678

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Public-Private Partnership as Incentive Institution of Entrepreneurship

Public-Private Partnership as Incentive Institution of Entrepreneurship

Journal of Economic Regulation, , Vol. 8 (no. 1),

The interaction system of national public and private sectors institutions is becoming increasingly important in the conditions that characterize the current stage of economic development (such as globalization and post-industrialization trends, geopolitical threats, transformation of production and financial processes). Instability and the dependence of national economies from external environment factors, exposure to systemic crises increase the vulnerability of national business and require the state institutions’ activation in order to support and promote national business initiatives. In these circumstances, one of the most adequate to modern realities forms of entrepreneurial activity stimulation is the public-private partnership model, which proved to be highly effective, both in foreign countries and in Russia. The author reveals potential of public-private partnership as an institution to stimulate entrepreneurial activity by analyzing features of its organizational and management mechanism in the Russian Federation. The practical aspects of the introduction of the public-private partnership model are studied on the example of the Rostov region.
 
The author shows that the implemented programs to encourage entrepreneurship through PPP projects have a positive effect, but at the same time remain a number of problems in the development of the business sector in Russia. The improving ways of the interaction mechanism between government and business at the regional level are identified based on the assessing results of the PPP level in Russia as a whole and in separate regions, implemented by the Association "Center for PPP development".

Views: 1083

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Improvement of Electronic Procedures Reglamentation at the Present Stage

Improvement of Electronic Procedures Reglamentation at the Present Stage

Journal of Economic Regulation, , Vol. 8 (no. 1),

The paper deals with the organization of electronic procedures at the present stage, the selection of qualified contractors to carry out capital repairs of common property in apartment buildings. The author gives an analytical overview of the development of electronic procedures, legislative framework of the contract system in the areas of procurement of goods, works and services for state and municipal needs, of engagement of contractors for the provision of services and performance of works on capital repair of common property in apartment buildings. The author presents her vision of unified requirements for the organization of the united trading platforms, the protection of information and communication technologies. The preliminary selection of qualified contractors and electronic trading procedures is demonstrated. The emphasis is laid upon the development of such principles of attracting contractors to provide services and perform works on capital repairs of residential buildings, as availability and transparency of information, creation of equal conditions for preliminary selection participants, organization of fair competition, the efficient use of regional operator’s means, formed by the residential premises owners’ contributions for capital repairs. The author formulates proposals to improve the regulatory order to attract contractors for capital repairs of common property in apartment buildings.

Views: 780

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Electronic Currency in the Light of Modern Legal and Economic Challenges

Electronic Currency in the Light of Modern Legal and Economic Challenges

Journal of Economic Regulation, , Vol. 8 (no. 1),

The author gives a brief excursus on the crypto-currency development, the theoretical understanding of a new kind of digital money. Today in the world there is no single interpretation of the crypto-currency, in some sources it is treated as a currency, others as a commodity or raw material. The appearance and use of Bitcoin (the main crypto-currency) are considered by some authors as the evolution of the global financial system. The history of the crypto-currency origin, the distinctive features of cryptocurrency from the usual currency, the specifics of their use and relation to these governments are investigated and characterized by their legal status. There are real limitations in Australia, Germany, the Netherlands, New Zealand, Singapore, some US States and various offshore, they might constitute restrictive measures, as in Indonesia, China, Russia, and Ukraine. Many governments chose a wait – for example, the EU, UK, Switzerland, USA, Canada, Japan, countries of South-East Asia. The most significant signs of cryptocurrencies, such as decentralization, anonymity and lack of guarantees are marked. Two possible scenarios of crypto-currency development in Russia are proposed. The first scenario is prohibitive and the second one is regulatory. It is noted that the bitcoin should be banned, and should be studied, and then start to gradually adjust. Its benefits and disadvantages of the scenario use are highlighted. In addition, the author emphases the almost complete lack of a legal framework governing relations between clients of the new information network. As a result the study is focused not only on the necessity a detailed scientific study of crypto-currencies, but also on the need to develop institutional norms. Most of the developed countries adapt their legislation to regulate the new electronic money, which will allow slow to adapt innovation of the financial market - a crypto-currency to modern realities. As in Russia the legal basis for this phenomenon is not well developed, the author emphasizes the urgency of the regulation problems of social relations associated with the crypto-currency. The conclusion is drawn on necessity of immediate institutional regulation of transactions in the crypto-currency.

Views: 1186

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