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Coase’s Transactional Principle in The Light of System Economic Theory

Coase’s Transactional Principle in The Light of System Economic Theory

Journal of Institutional Studies, , Vol. 13 (no. 3),

The problem of optimization of transaction costs is investigated in the article from system economic theory. The concept of a transaction is interpreted as an interaction that affects the products’ seller and the products’ buyer and the immediate system environment of each of them. The representation of such an environment in the form of a tetrad, which is a relatively stable complex of four basic subsystems of object, project, process, and environmental types, makes it possible to trace the consequences of the transaction impulse in the economic zone of the seller and the buyer. Based on the systemic expansion of the concept of transaction, we analyze the transaction costs and benefits arising from the transaction in all four subsystems of the internal space of the firm and its immediate external environment. When formulating the modified Coase’s transactional principle, which determines the optimal size of a firm depending on the ratio between transactional (external) and administrative (internal) costs, we take into account the change in the firm’s “effect of influence” on the immediate environment as boundaries of the firm expand. Considering the “effect of influence” becomes especially important in the context of the growing development of the ecosystem form of organizing economic interaction, characterized by an increased density and tightness of intersubjective relations within the ecosystem. Attention is drawn to the positive aspects of “institutional friction” in the economy, which allows a new approach to determining the optimal level of transaction costs. The expediency of considering the “double tetrad” as a combination of the seller’s tetrad and the buyer’s tetrad as a system unit of market analysis is substantiated.

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State Paternalism: from Science to Scientometrics

State Paternalism: from Science to Scientometrics

Journal of Institutional Studies, , Vol. 13 (no. 3),

The article presents the results of the study of public opinion in the context of science reforming. The adoption of the Law on the Russian Academy of Sciences has in fact liquidated academic freedoms and consolidated state interference into scientific life by simultaneously escalating the use of Scientometrics. Respondents' assessments of the use of Scientometric indicators and journal rankings indicate that most economists do not trust the Scientometric tools. Based on the results of a sociological survey of the community of economists in 2020, the article concludes that there is a "managerial failure" of the paternalistic state. An analysis of the Scientometric indicators used in Scopus is also presented, including three well-known metrics: CiteScore", SNIP, and SCImago (SJR). In addition to the description of the sample of journals and the scale of monitoring, the author presents the criterion of ranking the journals MWR and the algorithm of its definition in comparison with the SJR indicator in Scopus. The final part of the paper discusses the econometric model based on the hypothesis that there are links between the ranking of journals, obtained on the basis of a sociological survey of economists, and the estimates of the "usefulness" of the introduction of relevant Scientometric indicators by the same respondents. The calculations performed have confirmed the formulated hypothesis and allowed to quantitatively measure the impact of the respondents' attitude to Scientometric indicators on the value of private ratings reflecting the Scientific level of the journal, the public prestige of the journal and Interest in the journal publications.

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Import of Scientific Policy Instruments in Contemporary Russia

Import of Scientific Policy Instruments in Contemporary Russia

Journal of Institutional Studies, , Vol. 13 (no. 3),

Characteristic features of contemporary scientific policy of Russia in the context of its instruments import are highlighted in the article. Instruments are analyzed as institutions according to the D. North interpretation. It was revealed that the main imports are the instruments those ensure the accountability of the academic community (academia). Grant funding system, scientometrics and academic excellence programs are these instruments. In the conditions of contemporary Russia the accountability of scientists and scholars to society turns into accountability to the vertical of power. The motivation of its representatives includes both the idea of public benefits as well as the task of private efficiency maximizing when to select the goals and instruments of scientific policy. It is shown that the selection process includes three main levels: political, governmental and departmental. Imported instruments are gradually transformed in accordance with the interests of the actors participating in the vertical administrative bargaining at all these levels. The goals set at the political level to strengthen economic and political positions of the country in the world are gradually being replaced with the tasks of maximizing the private efficiency of high-ranking participants in this bargaining. As a result, a qualitative modification of the sphere of science occurs. It is not just about the limitation of academic community autonomy, but about its incorporation into the vertical of power in the conditions of contemporary Russia. This fact leads to the changing of motivation and structure of academia. Academic researchers and scholars are gradually being replaced by politicized academic administrators and specific academic entrepreneurs. They are differ if compare them with the western academic entrepreneurs. The latter are focused on the competitive economic markets, while the first concentrate their attention on the redistribution of resources within the framework of vertical administrative bargaining.

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Empirical Analysis of Opportunism Based on Data on University Students of Different Courses

Empirical Analysis of Opportunism Based on Data on University Students of Different Courses

Journal of Institutional Studies, , Vol. 13 (no. 3),

The article is devoted to the New Institutional analysis of the factors of opportunism among students of different courses. The analysis is based on a survey in which 231 students from the Higher School of Economics and other Russian universities took part from February to May 2021. Econometric modeling is based on Latent class analysis, which allows the identification of unobservable groups based on the observed categorical variables presented. One of the main findings of the research is that fourth year students are less prone to opportunism than first, second and third year students. This can be explained by the higher opportunity costs of cheating among fourth year students and their greater independence, primarily financial. In addition, students who are motivated primarily to obtain knowledge (mastery) show a lesser inclination towards opportunism compared with students whose main motive is the degree (performance). Furthermore, a higher level of rationality, both in a general sense and in relation to budget planning, is reflected in a greater tendency to dishonest behavior. Finally, more honest behavior outside the university is combined with more dishonest academic behavior. The latter can be explained by the fact that it is psychologically more difficult to commit an immoral act in relation to a loved one than to do so in an academic environment, when you deceive a not personally familiar person and not even a specific person. Thus, on the basis of the analysis carried out, it can be understood under what conditions the student environment will be characterized by a higher propensity for opportunism and, accordingly, a lower rate of human capital accumulation.

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Regional Development Corporations: Foreign Experience and Russian Practice

Regional Development Corporations: Foreign Experience and Russian Practice

Journal of Institutional Studies, , Vol. 13 (no. 3),

The article is focused on the chronology and classification of territorial development agencies (corporations) as an instrument of state regional policy. The paper shows the threat of transformation of the potentially constructive role of corporations into a negative plane. The example of Poland illustrates the EUʼs intervention in the countryʼs internal affairs through regional development corporations as contact points. In Kazakhstan, the first wave of social and entrepreneurial corporations, which were created in 2006–2007 on an extraterritorial basis, caused an internal conflict between the elites, which led to the reformatting of this institution and its subordination to the existing system of regional management (“one district – one region”). The pluralism of approaches to the formation of a network of regional development corporations (“bottom-up” – “top-down”, monoterritoriality – extraterritoriality, etc.) provides opportunities for managerial experimentation, the results of which in the territory of the Russian Federation were expressed in the mass of economic and managerial structures at the federal and regional levels. At the same time, the macroeconomic success of their joint activities remains unclear. For the Russian Federation, the model of consolidation and development of the internal economic space on the basis of corporations of macroregions representing a set of neighboring subjects of the Russian Federation and historically having economic ties of varying degrees of breadth and strength seems appropriate. The model under consideration is based on a new institution of state ownership (macroregion ownership), which allows solving the problems of economic integration of territories by building extraterritorial production and economic complexes.

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Narrative Institutional Analysis and The National Innovation System in Russia

Narrative Institutional Analysis and The National Innovation System in Russia

Journal of Institutional Studies, , Vol. 13 (no. 3),

The paper deals with the widespread narratives describing the institutions specific to Russia’s innovation system. Narrative economics provides an interdisciplinary research perspective, due to its focus on qualitative data that were ignored by the conventional economics for a long time. We emphasize that narrative analysis is rooted in the methodological framework of original institutional economics. Literature review using the PRISMA method did not identified any examples of applying narrative analysis to institutional studied of Russia’s innovation system. The empirical data for this paper involve popular narratives contained in 43 rating media sources extracted from a Russian information analysis agency Integrum. The sources were selected using the real-time media monitoring and analysis system Medialogia. The study covered the period from January 1, 2010 to July 1, 2021. Content analysis of the core ideas extracted from scholarly publications and media sources allowed to identify common narratives on institutional arrangement of Russia’s innovation system, that impede commercialization of innovations. However, conflicting approaches are provided by the literature to deal with related problem situations. The viral spread of popular narratives that affect the actors of Russia’s innovation system is illustrated by one of the typical narratives about the Russian innovation system. The research implications can be useful for developing a strategy for state innovation policy. Improved methodology for assessing virality of narratives and their power, as well as the empirical testing of proposed hypotheses remain the subject for future research.

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Nudge in The Conditions of Digital Transformation: Behavioral Basis

Nudge in The Conditions of Digital Transformation: Behavioral Basis

Journal of Institutional Studies, , Vol. 13 (no. 3),

Digital transformation in most cases has a positive impact on the economy. However, there is a possibility of negative consequences that worsen the standard of life of the population. Society wants to avoid a decline in living standards. The state policy to minimize the risks of digitalization should be developed for these purposes. Digital transformation leads to the complication of the technological environment, to the deformation of social relations, to a change in decision-making processes. The complexity of the technogenic environment leads to increased cognitive distortions and irrational behavior. Living standards are declining as a result. Classical approaches to government regulation often do not take into account psychophysiological and sociocultural behavioral factors. As a result, the regulation does not have the expected effect. This is especially evident in situations of uncertainty and longtime intervals. Behavioral economics and nudge can help solve these problems. This article provides a systematization and description of the factors that determine behavior. Decision-making processes are characterized. A systematization and explanation of cognitive distortions is proposed. An overview of approaches to the use of nudges to prevent cognitive distortions is proposed. Cases of using nudges to reduce the risks of digitalization are presented.

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The Impact of The Reinsurance Institute on The Financial Results of Insurance Companies

The Impact of The Reinsurance Institute on The Financial Results of Insurance Companies

Journal of Institutional Studies, , Vol. 13 (no. 3),

Risk management is one of the biggest challenges for financial market participants, in particular for the insurance companies. To solve this problem, the regulator and the insurance market have created a number of institutions, one of which is the institution of reinsurance. Institutions contribute to the solution of problems arising due to the limited rationality and opportunism of participants of contract processes. By use of these institutions organizations have an opportunity to reduce the “ex post” and “ex ante” transaction costs associated with contracts. At the same time, institutions only determine the rules and goals. The organization’s tactics and the way of fulfilling the requirements are completely controlled by its leadership of all levels, which also defines the role of institutions in solving other important business tasks, such as ensuring its efficiency and sustainability. The sustainability and efficiency of the insurance business significantly depends on proper risk management. This study analyses how the use of reinsurance institution as a part of risk-management affects the financial results of insurance companies. The insured events specified in contracts may not occur during their validity period, and one can suppose that in the short-term perspective reinsurance generates mostly outgoing cash flows, which affect the efficiency, solvency and liquidity of the organization. So the aim of the study is to analyse the impact of reinsurance intensity estimated by the share of premium transferred to the reinsurer on the specific financial characteristics of Russian insurance business. As a result, it was revealed that in the short term the impact is significantly negative: the use of reinsurance leads to decrease in financial performance of domestic insurance organizations. This result, of course, does not diminish the significance of reinsurance for risk-management, but it should be taken into account within financial planning and actuarial activities. For completeness, the relationship of various financial indicators with efficiency, solvency and liquidity of insurance companies was also analysed. In particular, it was shown that a change in the influence strength of a number of financial management tools affect above mentioned characteristics. We also noted the need to consider the nonlinear nature of relationships between financial indicators used in study in processes of forecasting and management.

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Institutional Barriers to The Growth of Human Capital of Highly-Skilled Professionals

Institutional Barriers to The Growth of Human Capital of Highly-Skilled Professionals

Journal of Institutional Studies, , Vol. 13 (no. 3),

The factors that currently determine Russian professionals' quality of human capital is analised in the article. Authors use the multinomial logistic regression and methods of content analysis based on the data of the RLMS HSE in 2019 and the FCTAS RAS in 2021. It is shown that the main role in the processes of accumulation and renewal of their human capital is played by factors related to the specific of socio-economic institutions in Russia. Employment in the main sectors of the Russian economy – industry, trade and services – does not require professionals to further increase their human capital. The concentration of enterprises from industries where highly qualified specialists are usually in demand in the most urbanized regions causes an unequal distribution of high-quality human capital between large cities and other localities. It is also shown that the influence of age on the processes of accumulation of human capital is nonlinear. The possibility to get into the group with the highest quality of human capital for professionals are drained even before the age of 40. At the same time, from the age of 45, the chances for them to have human capital with its typical quality for highly-skilled professionals begin to decrease, which is associated with discrimination in the Russian labor market of older workers and the inexpediency for them to invest in their human capital in these conditions. The results show how difficult it will be in the current conditions and considering the inevitable aging of the population to implement the plans of the country's leadership to increase the share of high-tech enterprises and increase labor productivity without changing the institutional environment.

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Gender Aspects of Reproduction of Professional Dynasties in Medicine

Gender Aspects of Reproduction of Professional Dynasties in Medicine

Journal of Institutional Studies, , Vol. 13 (no. 3),

The number of female health workers is predominant in the current health care system. However, in terms of the distribution of power and authority, career trajectories, and the culture of relationships, medicine still remains gender-related to men. Reproduction processes of the professional structure of medicine, in which professional dynasties occupy a special place, is also marked by gender differences. Thus, the article addresses the gender specificities of the institutional reproduction of medical dynasties in modern Russia. Based on in-depth interviews with twenty representatives of multigenerational families of doctors from ten cities, gender scenarios for the transmission of professional positions and the gender specificity of using the social and symbolic capital of the dynasty in the context of their reproduction are analyzed. According to the empirical research findings, the dynastic model of marital status transfer maintains and reproduces gender inequality in the medical profession. There is low gender sensitivity in doctors’ dynasties, where women are more likely to be passive or under family pressure to pursue educational and work tracks. The choice of professional specialization is conditioned by gender stereotypes. Career and professional opportunities of women doctors are limited by an imbalance between work and home responsibilities. Dynasty social and symbolic capital investment strategies are less resourceful for women in clinical practice and more effective in academic medicine. The deconstruction of the traditional gender display in the profession is proceeding at a slow pace, while medical dynasties continue to rather reproduce the inequality and male ethics of the medical profession.

Views: 283

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