Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
344082
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)
 

Institutional Approach in Economics and to Economics. Part II

Institutional Approach in Economics and to Economics. Part II

Journal of Institutional studies, , Vol. 7 (no. 4),

The paper attempts to justify an alternative to conventional methodology of economics, as well as make a corresponding revision of the history of this discipline. It explains why the discipline in its orthodox version, and for the most unorthodox directions, is cognitively sterile and socio-economico-politically very harmful. The paper can be seen as a manifesto which calls for a radical change in the discipline. As a manifesto, it probably could be called "Economics: from repentance and resurrection", that is, I suggest to economists to repent of the harm that this discipline has brought and on the basis of this reflection to revive it in the different methodological framework that is able to make economics socially useful. The second part of the paper, which is published in this issue, consists of two sections. In the first one (section number 4) economics is regarded as an institution and discusses its origin and evolution, as well as its current operation. On the basis of the analysis made in this section we can conclude that this institution has a very high degree of stability and because of that it cannot be reformed without an active external intervention. The fifth section of the paper is devoted to the link of the social role of economics with its methodology. It argues that the social function of economic science is the study of reality as it is, and underlines that economic education must be oriented in this direction.

Views: 1251

Continue Reading

Machinery and Equipment as National Wealth of Russia: Institutional Aspects, “Statistical Illusions” and Forecasting Problems

Machinery and Equipment as National Wealth of Russia: Institutional Aspects, “Statistical Illusions” and Forecasting Problems

Journal of Institutional studies, , Vol. 7 (no. 4),

In the context of development of import substitution policy authors focus on capacity utilization rate as a target of the government regulation. The paper states statistical indicators national wealth of Russia with the emphasis on machinery and equipment. Authors stress the importance of the fact that after 2004 Rosstat ceased to publish data concerning average age of equipment. The dependency of low capacity utilization rate on high degree of wear and tear has been emphasized. The papers offers hypothesis that low capacity utilization rate contributes to current inflation via a lack of many key goods and resources. In turn, the high degree of wear and tear on the fixed assets, especially, machinery and equipment, is explained by means of fixed capital investment collapse in the 1990s. The paper pays special attention to the institutional causes of this collapse. Authors conclude that such high degree of wear and tear is the barrier to the success of the government regulation of capacity utilization rate in the medium-run and in the longrun. There is a critique of the methodology of the contemporary foresight researches in Russia. The problem is that such researches exclude machinery and equipment as an object of long-term forecasting from the state priority model titled “Development of Science, Technology and Industry”. The paper concludes that classification of machinery and equipment by depreciation groups in the Russian economy should make for largescale renewal together with import substitution support in the both industrial and regional aspects.

Views: 1337

Continue Reading

Models of Innovation Activity Firms and the Competitive State

Models of Innovation Activity Firms and the Competitive State

Journal of Institutional studies, , Vol. 7 (no. 4),

The paper clarified the concept of innovation activity of firms from the perspective of the model open innovation with traditional and alternative approaches to the methods of the protection of innovation activity results outlined. With the use of institutional tools, theoretical concepts and practical study the patterns of innovative activity of firms (external, internal & cooperative strategies) are analyzed and the selection criteria for models of innovation are proposed on the basis of a comparison of transaction costs and benefits specific to the closed forms and conditions for cooperation. The forms of cooperation, their pros & cons are mentioned given the results of some empirical evidence. Practical recommendations for the Russian companies to organize their innovation activities are given, as well as on the improvement of competition policy with regard to the inclusion of innovation factor in the analysis of mergers in Russia (also based on the mechanism of the use of this factor by means of merger simulation models). The paper also suggests the criteria for the evaluation of collaborative R&D projects of firms as antitrust tools aimed to use the “rule of reason” when the decisions are made.

Views: 1377

Continue Reading

The Institutional System of Economic Agents’ Social Responsibility

The Institutional System of Economic Agents’ Social Responsibility

Journal of Institutional studies, , Vol. 7 (no. 4),

In this paper it was made an attempt to analyse the main characteristics of the institutional system of economic agents social responsibility. The institutional system can be described as a complex of norms, rules, regulations and enforcement mechanisms in the context of interactions and communications of economic agents. The institutional nature of social responsibility allow to solve social dilemmas through the internalization of social responsibility norms and creating social value orientations, which are determine the prosocial behaviour of economic agents. The institutional system of social responsibility was described from the methodological institutionalism point of view. Analysing this phenomenon we are required to develop research on the objects of this system (norms, regulations, behaviour), on the subjects of this system (persons, business, government) and on the institutional mechanisms (internalization of social responsibility norms, promoting prosocial behaviour, adaptation and transformation of the social responsibility norms) aimed to ensure the understanding of origin and significance of social responsibility for modern society.

Views: 1295

Continue Reading

Transaction Costs, the Phenomenon of the Trading House and Economic Organization

Transaction Costs, the Phenomenon of the Trading House and Economic Organization

Journal of Institutional studies, , Vol. 7 (no. 4),

The present paper contains a study of the phenomenon of company’s specific internal divisions called “trading house”. The analysis of different approaches (based on results obtained by R. Coase and O. Williamson) towards the problem of impact of transaction cost on company size leads to the following conclusion: the company size mostly depends on its institutional architecture which includes specific divisions that ensure outsourcing of intergroup transaction cost. I propose to call these divisions centers of transaction cost. I suppose that the wide popularity of trading houses among companies belonging to different branches can be explained by the fact that a trading house is mostly used not as selling and purchasing division, but as a center of transaction cost that concentrates the biggest transaction cost (by its share within company’s general expenses). This reasoning leads to possibility of existence of a set of methodological principles that allow to build up an a priori model of expanding company. The process of expansion represents a series of inclusion of centers of transactions cost by the company after institutional advantages of an earlier institutional architecture disappear. This methodology allows to set up a classification between a classical company as a structure with low level of integration and frozen institutional architecture and an economic organization that represents an explicitly constructed composition including centers of transaction cost that help to extend the transformational space of an expanding company.

Views: 1440

Continue Reading

Institutional Problems and Development Perspectives Innovative Entrepreneurship in Resource Economics

Institutional Problems and Development Perspectives Innovative Entrepreneurship in Resource Economics

Journal of Institutional studies, , Vol. 7 (no. 4),

The paper justifies the necessity to transit towards the mobilization model "triple helix" (strategic partnership of science and education organizations, business and government, the public). Innovation as a product of entrepreneurship permeate the system of relations from top to bottom – from more efficient ways of doing home Ho households, and to design mechanisms of state regulation of the economy. However, at the theoretical level, the relationship remains poorly studied in-novations as a function of entrepreneurship and entrepreneurship as social phenomenon in the system of institutional relations "business-authorities-society". Modern Russian economy has features of "dual enclave economy" with isolated more productive export-oriented resource sector. Innovative entrepreneurs do not become actors of change because of weak protection of property rights, manipulated state, weak sanctions for rent-seeking. The transition from innovative system "technology push" (fundamental knowledge on demand of state) towards innovation system "market pull" (innovations on demand of business) is complicated within Y-matrix of competitive institutional environment. It could turn out to be more effective to transit to the mobilization model "triple helix" (strategic partnership of science and education organizations, business and government, the public) in compliance with X-matrix of cooperative institutional environment of redistribution. This will allow to create the necessary mechanisms for the exchange of missing codified knowledge (for those who imitate innovations) and tacit knowledge (for pure innovators) in the cross-sectoral technological chains. The design of institutional change in compliance with real needs of participants of innovative processes requires formal analysis of the region economic development type through assessing its key spheres, revealing and modeling prevailing type of entrepreneurship as well as identifying the relationship between development type and entrepreneurship type within institutional environment.

Views: 1458

Continue Reading

Adaptive Rationality, Adaptive Behavior and Institutions

Adaptive Rationality, Adaptive Behavior and Institutions

Journal of Institutional studies, , Vol. 7 (no. 4),

The economic literature focused on understanding decision-making and choice processes reveals a vast collection of approaches to human rationality. Theorists’ attention has moved from absolutely rational, utility-maximizing individuals to boundedly rational and adaptive ones. A number of economists have criticized the concepts of adaptive rationality and adaptive behavior. One of the recent trends in the economic literature is to consider humans irrational. This paper offers an approach which examines adaptive behavior in the context of existing institutions and constantly changing institutional environment. It is assumed that adaptive behavior is a process of evolutionary adjustment to fundamental uncertainty. We emphasize the importance of actors’ engagement in trial and error learning, since if they are involved in this process, they obtain experience and are able to adapt to existing and new institutions. The paper aims at identifying relevant institutions, adaptive mechanisms, informal working rules and practices that influence actors’ behavior in the field of Higher Education in Russia (Rostov Region education services market has been taken as an example). The paper emphasizes the application of qualitative interpretative methods (interviews and discourse analysis) in examining actors’ behavior.

Views: 1398

Continue Reading

Review of XI Pushchinsky Simposium on Evolutionary Economics

Review of XI Pushchinsky Simposium on Evolutionary Economics

Journal of Institutional studies, , Vol. 7 (no. 4),

A regular XI Pushchinskiy symposium "Evolution of capital, economic cycles, institutional dynamics. The basic assumptions of economic theory" was held in Pushchino (Moscow region) on 24-26 September, 2015. The symposium continues the series of symposiums on Evolutionary Economics, held in 1994 to discuss the problems of evolutionary and institutional economics.

Views: 1124

Continue Reading