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Mechanism of Money Circulation as a Subject of Mesoeconomic Analysis

Mechanism of Money Circulation as a Subject of Mesoeconomic Analysis

Journal of Institutional Studies, , Vol. 11 (no. 3),

The paper discusses the reasons and prospects for the inclusion of institutions and mechanisms of money circulation in the scope of mesoeconomic research. In the first part of the paper the institution of money is analysed from the perspective of methodological institutionalism. It is shown that the institution of money is a functional-temporal structure, and structures of this type are the main subject of study in mesoeconomics. The second part of the paper tests the hypothesis that the separation of structural sections of economic theory (microeconomics, macroeconomics and then mesoeconomics) is associated with the introduction into economic analysis of increasingly sophisticated theoretical ideas about money circulation in the economic system. The specificity of the mesoeconomic approach to the analysis of money circulation consists in studying the characteristics of transmission mechanisms of money circulation in increasingly complex economic reproduction structures, where heterogeneous economic entities, banking and financial intermediaries are represented, as well as coordination and integrative relations of various types that combine market and redistributive instruments. The prospects of a mesoeconomic approach to the analysis of the mechanism of money circulation in the context of general trends in the development of social sciences and the growing "ontological turn" are shown, in which the formation of mechanisms of social and economic relations becomes the main subject of analysis. In economics, such an important mechanism is the mechanism of money circulation.

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On One Direction of Development of the Mesoeconomics

On One Direction of Development of the Mesoeconomics

Journal of Institutional Studies, , Vol. 11 (no. 3),

Based on the mesoeconomic model of the shifting mode reproduction (SMR), an analysis is made of the current problem of the impact of emissions on economic growth and inflation. Calculations showed that in the long run, the economy can respond to emissions in a wide range: from inflation-free GDP growth to stagflation. Thus, one of the fundamental hypotheses of modern orthodox macroeconomic theory about the neutrality of money in the long term is called into question. Further, using the SMR model, progress in applied analysis was achieved in the field of applied analysis of the problem of the impact of emissions on economic growth and inflation. An algorithm for calculating the money flows distribution coefficient (coefficient q) is proposed, which turned out to be very useful for making decisions that mitigate inflationary expectations from emission shocks and increase the likelihood of accelerating economic growth. An analysis of the regression equations linking q with a number of key factors showed that in Russia the activation of emissions can lead to faster growth amid low inflation if it is accompanied by measures to reduce the tax burden, especially in the corporate sector; to stimulate high-tech exports; to intensify investments in state assets; to increase R&D expenses; by increasing the monetization coefficient.

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The Influence of the Relationship "Specificity of Key Assets – Human Capital" on the Development of the US Gas Industry

The Influence of the Relationship "Specificity of Key Assets – Human Capital" on the Development of the US Gas Industry

Journal of Institutional Studies, , Vol. 11 (no. 3),

The article examines the changes in the U.S. upstream gas industry from the perspective of asset specificity and characteristics of human capital. The authors show that nowadays the development of shale gas production, as well as the expansion of production and sales of liquefied natural gas are associated with changes in the asset characteristics (both tangible and intangible). The latter is increasingly acquiring the features of universality. Among the characteristics of such changes is the reduction in contract duration, and changing directions of natural gas supply (including outside the United States). Furthermore, the ratio of costs changes dramatically: while for the traditional fields capital costs, associated with well construction, dominate over operational costs, associated with well exploitation and maintenance, shale fields are characterised by an invert correlation. In addition, the essential role is now played not by field/well characteristics, but by the level of competencies and the technological development. Hence, the share of employees in the service sector keeps increasing. The authors substantiate that the “shale” assets are generally less specific than the “traditional” ones. The transformation of specificity, along with the increase in the number of transactions, lead to the proliferation of the number of service companies and local operators at all the stages. These companies tend to minimise costs and maximise efficiency, consequently (alongside with several other reasons, mentioned in the article) leading to lower gas prices in the U.S.A. and creating an opportunity for gas export.

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University as an Ecosystem: Institutes of Interdisciplinary Management

University as an Ecosystem: Institutes of Interdisciplinary Management

Journal of Institutional Studies, , Vol. 11 (no. 3),

This article considers a university as an analog of a socio-economic ecosystem focused on the creation, accumulation, and dissemination of scientific and applied scientific knowledge. Currently, most universities are governed by a disciplinary structure. As a result, university education is between a rock and a hard place: an established cognitive structure and insufficiently substantiated competency structure. The concept of interdisciplinary system management of the university is formulated, aimed at developing the systemic properties of the university, ensuring its integrity in space and continuity in time. The concept of interdisciplinary systemic management of a university, aimed at the development of the system properties of a university, ensuring its integrity in space and continuity in time is formulated. The suitability of the matrix management structure of a university based on the disciplinary structuring of a university as a set of primary monodisciplinary divisions (faculties, institutes), interdisciplinary expert committees and university-wide system offices is substantiated.

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Smart Contracts Throught Lens of the New Institutional Economics

Smart Contracts Throught Lens of the New Institutional Economics

Journal of Institutional Studies, , Vol. 11 (no. 3),

One of the most debated technologies affecting economic relations is blockchain and smart contracts, which are already used in various industries (financial, logistics, insurance, healthcare and others). This article is devoted to the analysis of smart contracts as a form of new contracting technologies by instruments of new institutional economics: the theory of incomplete contracts and the concept of self-enforcement agreements. The article formulates and explains two main hypotheses. The first hypothesis is related to the understanding of the applicability of smart contracts on a multitude of contracts, according to a well-known classification – classical, neoclassical, relational. The results of the study allow determining that classical contracts are more conformed to formalization in smart contracts. It is inferred that neoclassical contracts can also be presented in the “smart” format but it is hardly applicable to relational ones. The second hypothesis is considering the smart contracts spreading as not institutionally neutral phenomenon which can lead to significant changes in the legislative framework for contractual relations as well as mechanisms to ensure compliance with legally significant contracts.

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Cooperatives and New Institutional Economics

Cooperatives and New Institutional Economics

Journal of Institutional Studies, , Vol. 11 (no. 3),

The goal of the present paper is to analyze hybrids (introduced within the New Institutional Economics) through the lenses of cooperative theory. The logical basis of this approach is provided by the fact that cooperatives are hybrids and that there have already been attempts at analyzing hybrids as cooperatives. It is demonstrated that these attempts lacked methodological support. Analysis of the activity of cooperatives demonstrated that cooperatives can be formed within active (in this case formation of the cooperative is initiated by its future members) and passive (cooperative is formed by an external structure) approach. Cooperation between members can be explicit or implicit. It helped to divide cooperatives into four groups (on the basis of the criteria of combination of way of formation and model of cooperation). The notion of induced cooperative was introduced. Induced cooperative is a cooperative formed by an external coordinator, based on implicit cooperation and oriented towards interests of its members. Advantages of induced cooperatives in comparison with classic cooperatives were described. This analysis allowed to identify sharing platforms and franchising networks as cooperatives. Differences between franchising networks and traditional cooperatives were described. The paper demonstrates that this division into four groups is applicable to hybrids in general.

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Sustainable Regional Development: Actual Directions of Institutional Analysis

Sustainable Regional Development: Actual Directions of Institutional Analysis

Journal of Institutional Studies, , Vol. 11 (no. 3),

Transition to sustainable development needs not only national governments’ efforts but actions of multiple micro-level actors such as firms, households, and individuals too. Regional government bodies and municipalities can successfully play coordinative role for these actions. Many researchers have shown that institutions are important factor of the transition. Institutional environment can not only promote the transition but also suppress it, for example, by impairing quality of innovation process or by deterring “green” entrepreneurship. At the same time, on the sub-national level the role of institutions in the transition to sustainable development is explored at the less degree than at national level. This fact has determined the aim of the paper: to reveal what kinds of research directions can be most important for the regional economies transition tasks solution. Our analysis has shown that there is possible to stress the following directions of institutional analysis of transition to sustainable development on regional and local levels: Firstly, it is discovering the structures of the regional transition’s institutional environments, i. e. sets of institutions that are most influenced on the transition at the different regions. Secondly, it is analysis of the formal institutions that deter local actors’ transitional actions. Thirdly, it is revealing and analysis of the regional informal institutions and subjective norms that deter local actors’ transitional actions. Apparently, the solution of these tasks for the regions in question can make a meaningful contribution in the regional transition programs’ scientific foundations.

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The Actors of the Request for Institutional Changes in Modern Russia (the Socio-psychological Context)

The Actors of the Request for Institutional Changes in Modern Russia (the Socio-psychological Context)

Journal of Institutional Studies, , Vol. 11 (no. 3),

On the basis of the FCTAS RAS monitoring study (April 2018), the socio-psychological characteristics of the two groups modern Russians – supporters of institutional change and supporters of stability – are compared. The analysis is based on the approach proposed by T. Garr, the author of the classic study "Why people rebel", according to which the protest public sentiment associated with the desire for qualitative institutional change, due primarily to socio-psychological factors (primarily, relative deprivation). It is shown that in modern Russia supporters of change are really more frustrated by their social status than supporters of stability. In addition, the supporters of change have wider set of life plans, they are eager to achieve extraordinary success in life than the supporters of stability. At the same time, they more rarely realized desired life models in the past. Supporters and opponents of institutional change perceive the social processes taking place in the country differently: supporters of change are less rated already occurred changes in the country as positive and future perspectives are drawn to them in darker colors than to the supporters of stability. These trends characterize the growth of prerequisites for the next qualitative change in the "rules of the game" in Russia, but they do not correspond to the situation of the acute phase of the national crisis, but rather to the situation of uncertainty, expectation of new events.

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Influence of Personal Characteristics on the Financial Behavior of Youth

Influence of Personal Characteristics on the Financial Behavior of Youth

Journal of Institutional Studies, , Vol. 11 (no. 3),

The article is devoted to the analysis of the impact of young people’s personal characteristics, such as financial literacy, level of optimism, risk appetite, propensity for innovation, credulity, extravagance, and propensity for illegal actions, on their likely financial behavior. The study was based on the results of an in-depth interview with 10 representatives of the young people of Nizhny Novgorod and a survey of 420 students learning economics at Lobachevsky State University of Nizhny Novgorod. We employed SPSS and applied the methods of correlation regression analysis and cluster analysis to process the survey results. The paper presents an extensive review of studies on the relationship between financial behavior and financial literacy, as well as the psychological characteristics of an individual. The in-depth interview revealed the peculiarities of young people's understanding of success in the financial market and the personal characteristics ensuring it (literacy, rationality, activity, risk preference, moderate credulity). A sociological survey allowed data on the intensity of various characteristics among respondents and their variation. For the entire sample of students, we revealed a close positive correlation between the level of optimism, risk preference, and propensity for illegal actions. Using the Ward method, we divided the sample of students into three clusters, which differ in both the set of characteristics and the direction and intensity of the interrelationship between them. Directions relating to the formation of effective financial behavior were identified for each cluster of students. For the 1st cluster, it is recommended to enhance the level of basic knowledge in order to prevent any chance of falling victim to dubious schemes and losing money. For the 2nd cluster, it is necessary to focus on resistance management and enhancing the level of trust and activity. In the 3rd cluster, which includes the most literate students, it is important to prevent the undesirable relationship between risk appetite and informal actions. The results of the study may be applicable in the further development of methodological approaches to assessing the relationship between financial literacy and other personal characteristics of people, as well as the influence of these factors on their financial behavior. They can also be employed for different kinds of awareness-raising and educational work intended to develop the skills of efficient financial behavior of young people.

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Dynamics of Financial and Consumer Behavior of Russians in 2003–2018

Dynamics of Financial and Consumer Behavior of Russians in 2003–2018

Journal of Institutional Studies, , Vol. 11 (no. 3),

The article shows that the financial behavior of Russians has changed significantly over the past 15 years. The share of followers of passive financial behaviour has fallen sharply and the share of bank loans has increased significantly. At the same time, the increase in the number of people having savings was relatively small. It is shown that the rapid growth in the number of Russians with a credit load was facilitated by the "omnivorous" banks that issued loans regardless of the real ability of people to repay them, unlike social networks that lend to their members usually only in case of confidence in debt repayment. It is shown that groups with diverse financial behavior differ not only in the proportions of representatives of various income strata, but also in their other features (geography, educational, etc.). Considering credit-saving and consumer behavior the author states that development of bank crediting went in recent years alongside with the reduction of consumption of all paid services aiming at maintenance and development of the human capital. In the last 15 years both the earnings gain and borrowed funds Russians spend mainly on cars and durable goods. As a result, during these years there was an explosive growth of the vehicle-to-population ratio in the country, and computers, mobile phones, iPhones, iPads, air conditioners, etc. became an integral part of Russians everyday life. In addition, the population of the country has been actively improving its living conditions, what resulted in the increase of housing of Russians by 5 square meters per person. It is concluded that the priorities of financial behavior, which are typical for Russians, do not contribute to the achievement of the "knowledge economy" based on the advanced development of the Quaternary sector of the economy.

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Assessment of Personnel Risks and Threats in the Context of State Security: a Neo-Instutional Perspective

Assessment of Personnel Risks and Threats in the Context of State Security: a Neo-Instutional Perspective

Journal of Institutional Studies, , Vol. 11 (no. 3),

This paper focuses on the problems of analysis and assessment of personnel risks and threats to personnel security as well to the security of the state from the point of view of the new-institutional theory. Organizational structures adapt and structure themselves based on the behaviour of their participants and on the factors of the external environment. Thence, personnel security might be influenced and distorted by the geopolitical, social and economic factors of all kinds. It is in the best interest of the state to impose a certain degree of regulation on these processes and to take control into its hands for the greater good and benefits of its citizens. Institutions of personnel security in Russian Federation are undergoing profound changes in the recent years. Many events that take place in the institutional environment might cause personnel risks and threats and thence effect the state security. Therefore, it seems important to focus on the volatile factors that might cause issue for the personnel security and cause negative effects for the state security. The paper analyses the indicators and performance indicators of the state apparatus and the quality of public administration, corruption risks, the effectiveness of the implementation of human resource requirements, the risks of demographic development, the level of migration, the scientific and educational system and educational risks using the example of the Russian Federation.

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Impact of the Ownership Regime on Forest Use Efficiency: Cross-Country Analysis

Impact of the Ownership Regime on Forest Use Efficiency: Cross-Country Analysis

Journal of Institutional Studies, , Vol. 11 (no. 3),

One of the characteristic features of the forest policy in Russia is the preservation of de jure state ownership of forest lands, which is a rare example of retaining the state monopoly on a certain class of assets in the conditions of rapid privatization that took place in Russia in the 1990s. Nevertheless, under certain institutional conditions, a gradual transition to private ownership of forest land can be quite effective to form a model of long-term sustainable forest use. In this article, based on a sample of panel data from 56 countries for the period from 1990 to 2015 with a step of 5 years, we analyzed the relationship between the specific tree stock and forest management and economic factors. It has been established that there are no statistical grounds for rejecting the hypothesis of a positive impact of the share of private ownership of forest land on specific stocks of growing stock. At the same time, the revealed connection is rather weak, which, unlike earlier results, does not allow to assert that private ownership of forest lands is an unambiguous benefit. Moreover, it is indicative that this dependence has no statistical significance just for countries with mixed ownership of forests. When making decisions on the development of private ownership of forests, it is necessary to study in more detail the peculiarities of the institutional environment in the country and try to carry out a multi-methodological and interdisciplinary analysis of possible consequences without blind belief that market capitalism will win in any case.

Views: 68

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