Pub Date : 2023-01-19DOI: 10.1080/14631377.2022.2164782
Éva Berde, Muyassar Kurbanova
ABSTRACT Both fertility and mortality rates are declining in the five Central Asian countries, so far resulting in an increasingly working-age population. The main question is whether these countries can benefit from this demographic transition while having different economic structures and diverse ethnicities. Our article shows the importance of demographic, economic, and human capital indicators and the influential role of governance indicators such as the Political Corruption Index and Egalitarian Democracy Index for economic growth. Based on the data from 1991 to 2018, the analysis has been conducted by employing fixed effect estimation with Driscoll-Kraay standard errors. The findings indicate that human capital with proper education and an appropriately absorbed labour force does have a more powerful effect on the demographic benefit. In addition, improving the quality of governance has a significant impact on economic growth.
{"title":"Does the demographic dividend with human capital development yield an economic dividend? Evidence from Central Asia","authors":"Éva Berde, Muyassar Kurbanova","doi":"10.1080/14631377.2022.2164782","DOIUrl":"https://doi.org/10.1080/14631377.2022.2164782","url":null,"abstract":"ABSTRACT Both fertility and mortality rates are declining in the five Central Asian countries, so far resulting in an increasingly working-age population. The main question is whether these countries can benefit from this demographic transition while having different economic structures and diverse ethnicities. Our article shows the importance of demographic, economic, and human capital indicators and the influential role of governance indicators such as the Political Corruption Index and Egalitarian Democracy Index for economic growth. Based on the data from 1991 to 2018, the analysis has been conducted by employing fixed effect estimation with Driscoll-Kraay standard errors. The findings indicate that human capital with proper education and an appropriately absorbed labour force does have a more powerful effect on the demographic benefit. In addition, improving the quality of governance has a significant impact on economic growth.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"154 - 178"},"PeriodicalIF":2.2,"publicationDate":"2023-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44666626","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-17DOI: 10.1080/14631377.2022.2104502
A. Efendic, M. Fritsch, T. Mickiewicz, Tomasz Skica
workshop entrepreneurship, local-level policy initiatives aimed at stimulating rigorous reviewing several (2022), in their paper entitled ‘The relationship between unemployment and entrepreneurship at the local level: the case of Poland’, investigate the impact of unemployment and employment rate on new firm registrations in the service sector in Poland. The results of their analysis indicate a pronounced relationship between rising unemployment and increasing numbers of new service businesses between 2003 and 2018. The authors conclude that there is a relatively pronounced role of necessity entrepreneurship in the service sector. At the same time, the authors do not identify a single mechanism for the impact of unemployment on new business entry across different parts of the service sector. Nevertheless, they show that those parts of the service sector that are highly concentrated (financial services) or provide public goods (education, healthcare) are less affected by rising unemployment as compared to other service businesses. This sectoral calibration of the unemployment–entrepreneurship link has useful policy implications at the local level.
{"title":"Entrepreneurship and local development in post-communist Central and Eastern Europe – new challenges are ahead: editorial","authors":"A. Efendic, M. Fritsch, T. Mickiewicz, Tomasz Skica","doi":"10.1080/14631377.2022.2104502","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104502","url":null,"abstract":"workshop entrepreneurship, local-level policy initiatives aimed at stimulating rigorous reviewing several (2022), in their paper entitled ‘The relationship between unemployment and entrepreneurship at the local level: the case of Poland’, investigate the impact of unemployment and employment rate on new firm registrations in the service sector in Poland. The results of their analysis indicate a pronounced relationship between rising unemployment and increasing numbers of new service businesses between 2003 and 2018. The authors conclude that there is a relatively pronounced role of necessity entrepreneurship in the service sector. At the same time, the authors do not identify a single mechanism for the impact of unemployment on new business entry across different parts of the service sector. Nevertheless, they show that those parts of the service sector that are highly concentrated (financial services) or provide public goods (education, healthcare) are less affected by rising unemployment as compared to other service businesses. This sectoral calibration of the unemployment–entrepreneurship link has useful policy implications at the local level.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"34 1","pages":"995 - 1000"},"PeriodicalIF":2.2,"publicationDate":"2022-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49024830","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-08DOI: 10.1080/14631377.2022.2138154
Evgeniya Dubinina
ABSTRACT Place-based policies can be an effective instrument for governments to encourage the economic development of a country. A Special Economic Zone (SEZ) is a place-based policy aimed at attracting FDI, employment growth, and supporting new economic reforms. In addition, for emerging economies an SEZ could be a potential catalyst for development; foreign investors can have a drastic impact on the productivity of domestic firms, revenues, and market shares through the implementation of new technologies and the creation of new firms. However, the effects of SEZs on the domestic market at the firm level are largely understudied. In this research, I leverage the large-scale SEZ policy implemented by the Russian government in 2005 that aims to attract foreign investors to specific parts of the country by offering tax relief. The primary objective of this research is to quantify the effects of the Russian SEZ policy on local firms. To examine the effects, I use the generalised Difference-in-Difference methodology and apply it to a panel of firms in Russia for the 2006–2019 period. The data includes time-varying SEZ treatment on firms, firm characteristics, and accounting data. The primary outcome variables of interest are revenues, profits, and total factor productivity. The research findings could contribute to the urban economic literature on place-based policies and may be helpful to policymakers in determining the effectiveness of SEZ place-based policies.
{"title":"Impact of Special Economic Zones on domestic market: Evidence from Russia","authors":"Evgeniya Dubinina","doi":"10.1080/14631377.2022.2138154","DOIUrl":"https://doi.org/10.1080/14631377.2022.2138154","url":null,"abstract":"ABSTRACT Place-based policies can be an effective instrument for governments to encourage the economic development of a country. A Special Economic Zone (SEZ) is a place-based policy aimed at attracting FDI, employment growth, and supporting new economic reforms. In addition, for emerging economies an SEZ could be a potential catalyst for development; foreign investors can have a drastic impact on the productivity of domestic firms, revenues, and market shares through the implementation of new technologies and the creation of new firms. However, the effects of SEZs on the domestic market at the firm level are largely understudied. In this research, I leverage the large-scale SEZ policy implemented by the Russian government in 2005 that aims to attract foreign investors to specific parts of the country by offering tax relief. The primary objective of this research is to quantify the effects of the Russian SEZ policy on local firms. To examine the effects, I use the generalised Difference-in-Difference methodology and apply it to a panel of firms in Russia for the 2006–2019 period. The data includes time-varying SEZ treatment on firms, firm characteristics, and accounting data. The primary outcome variables of interest are revenues, profits, and total factor productivity. The research findings could contribute to the urban economic literature on place-based policies and may be helpful to policymakers in determining the effectiveness of SEZ place-based policies.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"82 - 99"},"PeriodicalIF":2.2,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43197478","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-08DOI: 10.1080/14631377.2022.2137325
Marta A. Götz, B. Jankowska, Zakaria Talouni
ABSTRACT Participation of a country in the European Union and hence the participation in the European single market, have obvious consequences for capital flows, including those in the most advanced form, i.e. foreign direct investment. Foreign direct investment is considered one of the major incentives of economic integration. Thus, this study reflects on the impact of EU membership on FDI inflows to Poland as an EU member and signals key priorities for further integration. The theoretical foundation of the study resides in the theses of the new theory of economic integration and the investment development path theory. The paper employs the descriptive approach and inductive reasoning. We highlight the benefits resulting from the position of Poland on the investment development path and indicate possible associated threats. Moreover, we discuss retrospective reflections, some of the prospects, and possible directions of action recommended to optimise the future benefits of hosting foreign investors.
{"title":"Reflections on FDI in an post-communist country in the context of EU membership: retrospectives and prospects","authors":"Marta A. Götz, B. Jankowska, Zakaria Talouni","doi":"10.1080/14631377.2022.2137325","DOIUrl":"https://doi.org/10.1080/14631377.2022.2137325","url":null,"abstract":"ABSTRACT Participation of a country in the European Union and hence the participation in the European single market, have obvious consequences for capital flows, including those in the most advanced form, i.e. foreign direct investment. Foreign direct investment is considered one of the major incentives of economic integration. Thus, this study reflects on the impact of EU membership on FDI inflows to Poland as an EU member and signals key priorities for further integration. The theoretical foundation of the study resides in the theses of the new theory of economic integration and the investment development path theory. The paper employs the descriptive approach and inductive reasoning. We highlight the benefits resulting from the position of Poland on the investment development path and indicate possible associated threats. Moreover, we discuss retrospective reflections, some of the prospects, and possible directions of action recommended to optimise the future benefits of hosting foreign investors.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"134 - 153"},"PeriodicalIF":2.2,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42790032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-18DOI: 10.1080/14631377.2022.2108244
Stepan Zemtsov, Y. Tsareva, V. Barinova, M. Belitski, Alexander N. Krasnoselskikh
ABSTRACT In this paper we use an institutional approach and apply a regional perspective to explore how market potential, formal institutions, taxes, access to finance, regional policy instruments, and digitalization have affected small business activity in 83 Russian regions during 2008–2018. We use various regional data sources and official statistics to study the effects of regional business environments on entrepreneurship. Our results suggest that Russia’s business environment, including policy measures in taxation, is important in explaining small business activity, however digital transformation and the role of market potential can be better controlled by entrepreneurs in terms of what skills to learn and where to locate their businesses. In addition, we discuss the effect of exogenous shocks and changes in the business environment, along with dynamics, challenges, and perspectives of entrepreneurship in Russia.
{"title":"Small business in Russia: institutions, market potential, taxes and digitalization","authors":"Stepan Zemtsov, Y. Tsareva, V. Barinova, M. Belitski, Alexander N. Krasnoselskikh","doi":"10.1080/14631377.2022.2108244","DOIUrl":"https://doi.org/10.1080/14631377.2022.2108244","url":null,"abstract":"ABSTRACT In this paper we use an institutional approach and apply a regional perspective to explore how market potential, formal institutions, taxes, access to finance, regional policy instruments, and digitalization have affected small business activity in 83 Russian regions during 2008–2018. We use various regional data sources and official statistics to study the effects of regional business environments on entrepreneurship. Our results suggest that Russia’s business environment, including policy measures in taxation, is important in explaining small business activity, however digital transformation and the role of market potential can be better controlled by entrepreneurs in terms of what skills to learn and where to locate their businesses. In addition, we discuss the effect of exogenous shocks and changes in the business environment, along with dynamics, challenges, and perspectives of entrepreneurship in Russia.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"34 1","pages":"1029 - 1053"},"PeriodicalIF":2.2,"publicationDate":"2022-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47416910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-15DOI: 10.1080/14631377.2022.2104508
I. Iwasaki
ABSTRACT Russia is one of the few countries in the world that has opted for almost no policy measures involving the strong suppression of economic activity in the face of the epidemic disaster brought about by the new coronavirus (COVID-19). This makes Russia a valuable subject of social experiments through which the association between economic activity and the spread of the virus can be explored. This paper presents a dynamic panel data analysis to examine the extent to which different types of economic activity contribute to the spread of COVID-19 infection using monthly and quarterly panel data of Russian regions between March 2020 and April 2021. The results strongly supported our expectation that economic activities have a greater impact on the levels of COVID-19 transmission when they involve a larger number of inhabitants or stimulate greater consumption or social activities among citizens. It was also revealed that Russian regions vary greatly in terms of the routes that link economic activity to the spread of COVID-19. These results have important policy implications for current and future epidemic control.
{"title":"How do economic activities spur the COVID-19 pandemic in Russia? A dynamic panel data analysis","authors":"I. Iwasaki","doi":"10.1080/14631377.2022.2104508","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104508","url":null,"abstract":"ABSTRACT Russia is one of the few countries in the world that has opted for almost no policy measures involving the strong suppression of economic activity in the face of the epidemic disaster brought about by the new coronavirus (COVID-19). This makes Russia a valuable subject of social experiments through which the association between economic activity and the spread of the virus can be explored. This paper presents a dynamic panel data analysis to examine the extent to which different types of economic activity contribute to the spread of COVID-19 infection using monthly and quarterly panel data of Russian regions between March 2020 and April 2021. The results strongly supported our expectation that economic activities have a greater impact on the levels of COVID-19 transmission when they involve a larger number of inhabitants or stimulate greater consumption or social activities among citizens. It was also revealed that Russian regions vary greatly in terms of the routes that link economic activity to the spread of COVID-19. These results have important policy implications for current and future epidemic control.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"59 - 81"},"PeriodicalIF":2.2,"publicationDate":"2022-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48927891","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-01DOI: 10.1080/14631377.2022.2104504
Hiroyuki Taguchi, Elbek Erkin Ugli Abdullaev
ABSTRACT This study examines deindustrialisation in 15 post-Soviet economies by investigating the country-specific fixed effect in the relationships among manufacturing, population, and income and the factors contributing to deindustrialisation in terms of the premature deindustrialisation hypothesis. The fixed-effect estimation suggests deindustrialisation in the ten middle-income post-Soviet countries due to their comparative disadvantages in manufacturing as the overall contributor, with the lack of human capital, the Dutch Disease effect (mainly in Azerbaijan, Kazakhstan, the Russian Federation, and Uzbekistan), and immature institutions (mainly in Kyrgyz, Tajikistan, Ukraine, and Uzbekistan) as sub-factors that explain deindustrialisation in these countries based on factor analyses.
{"title":"Deindustrialisation in post-Soviet economies: premature deindustrialisation, Dutch disease, human capital, and institutions","authors":"Hiroyuki Taguchi, Elbek Erkin Ugli Abdullaev","doi":"10.1080/14631377.2022.2104504","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104504","url":null,"abstract":"ABSTRACT This study examines deindustrialisation in 15 post-Soviet economies by investigating the country-specific fixed effect in the relationships among manufacturing, population, and income and the factors contributing to deindustrialisation in terms of the premature deindustrialisation hypothesis. The fixed-effect estimation suggests deindustrialisation in the ten middle-income post-Soviet countries due to their comparative disadvantages in manufacturing as the overall contributor, with the lack of human capital, the Dutch Disease effect (mainly in Azerbaijan, Kazakhstan, the Russian Federation, and Uzbekistan), and immature institutions (mainly in Kyrgyz, Tajikistan, Ukraine, and Uzbekistan) as sub-factors that explain deindustrialisation in these countries based on factor analyses.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"101 - 121"},"PeriodicalIF":2.2,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47047193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-18DOI: 10.1080/14631377.2022.2104506
A. Vernikov
ABSTRACT The paper examines the Russian experience with explicit deposit guarantee. Some of its effects, such as moral hazard, adverse selection, and erosion of discipline, are typical and well-researched by previous authors. The social cost of having this institution in Russia turned out to be abnormally high, while the results in terms of bank stability are questionable. More than half of the insurance system members have gone out of business in a matter of just fifteen years. I examine the inception of deposit insurance in Russia, its design, implementation and political economy, using various theoretical approaches and combining qualitative with quantitative evidence. I argue that explicit deposit guarantee by a government agency was a priori redundant, in view of the extraordinary role of state-owned banks. The new institution was used as a tool for structural change and competition enhancement, which I regard as misuse. Deposit guarantee was enacted prematurely, before other essential institutions of bank regulation were in place. The political economy of deposit insurance reveals the political system’s vulnerability to uncontained pressure from private special interests demanding public protection. The new institution was captured by interest groups and exploited for private benefit. The evidence from Russia might be relevant to other emerging market countries.
{"title":"Breakdown: what went wrong with deposit insurance in Russia","authors":"A. Vernikov","doi":"10.1080/14631377.2022.2104506","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104506","url":null,"abstract":"ABSTRACT The paper examines the Russian experience with explicit deposit guarantee. Some of its effects, such as moral hazard, adverse selection, and erosion of discipline, are typical and well-researched by previous authors. The social cost of having this institution in Russia turned out to be abnormally high, while the results in terms of bank stability are questionable. More than half of the insurance system members have gone out of business in a matter of just fifteen years. I examine the inception of deposit insurance in Russia, its design, implementation and political economy, using various theoretical approaches and combining qualitative with quantitative evidence. I argue that explicit deposit guarantee by a government agency was a priori redundant, in view of the extraordinary role of state-owned banks. The new institution was used as a tool for structural change and competition enhancement, which I regard as misuse. Deposit guarantee was enacted prematurely, before other essential institutions of bank regulation were in place. The political economy of deposit insurance reveals the political system’s vulnerability to uncontained pressure from private special interests demanding public protection. The new institution was captured by interest groups and exploited for private benefit. The evidence from Russia might be relevant to other emerging market countries.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"41 - 58"},"PeriodicalIF":2.2,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44329190","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-17DOI: 10.1080/14631377.2022.2104505
Stanislav Klimovich, Sabine Kropp, U. Pape
ABSTRACT The collective organization of business interests in Russia is commonly considered weak. In some cases, however, business associations have succeeded in representing interests vis-à-vis the state. This article analyses an illustrative case of state–business negotiations regarding an extra profit tax for several chemical and metallurgical companies, proposed by the presidential administration in August 2018. Based on a case study involving media and interview data, the study examines the role of collective action under the auspices of the ‘Russian Union of Industrialists and Entrepreneurs’ (RUIE) in defending business interests. It identifies the necessary conditions under which collective action was effective in this specific case, and critically discusses the possible contingency of the given constellation in light of inherently asymmetrical relations between state and business actors. Furthermore, the article develops an analytical framework with which business associations and their lobbying activities under authoritarian capitalism can be analysed beyond the Russian case.
{"title":"Defending business interests in Russia: collective action and social investments as bargaining chips","authors":"Stanislav Klimovich, Sabine Kropp, U. Pape","doi":"10.1080/14631377.2022.2104505","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104505","url":null,"abstract":"ABSTRACT The collective organization of business interests in Russia is commonly considered weak. In some cases, however, business associations have succeeded in representing interests vis-à-vis the state. This article analyses an illustrative case of state–business negotiations regarding an extra profit tax for several chemical and metallurgical companies, proposed by the presidential administration in August 2018. Based on a case study involving media and interview data, the study examines the role of collective action under the auspices of the ‘Russian Union of Industrialists and Entrepreneurs’ (RUIE) in defending business interests. It identifies the necessary conditions under which collective action was effective in this specific case, and critically discusses the possible contingency of the given constellation in light of inherently asymmetrical relations between state and business actors. Furthermore, the article develops an analytical framework with which business associations and their lobbying activities under authoritarian capitalism can be analysed beyond the Russian case.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"17 - 40"},"PeriodicalIF":2.2,"publicationDate":"2022-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42537352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-16DOI: 10.1080/14631377.2022.2106922
Aleksandar Vasilev
ABSTRACT We augment an otherwise standard business cycle model with a richer government sector and add modified cash in advance (CIA) and deposit considerations. In particular, both the cash in advance- and deposit constraints of in earlier work are extended to include private investment and government consumption. Also, part of the purchases are made using credit. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999–2020), gives a role to money and costly credit in accentuating economic fluctuations. In particular, the modified CIA constraint combines monetary with banking theory, and thus produces a novel mechanism that allows the framework to reproduce better observed variability and correlations among model variables, and those characterising the labour market in particular.
{"title":"A business-cycle model with money and banking: the case of Bulgaria (1999–2018)","authors":"Aleksandar Vasilev","doi":"10.1080/14631377.2022.2106922","DOIUrl":"https://doi.org/10.1080/14631377.2022.2106922","url":null,"abstract":"ABSTRACT We augment an otherwise standard business cycle model with a richer government sector and add modified cash in advance (CIA) and deposit considerations. In particular, both the cash in advance- and deposit constraints of in earlier work are extended to include private investment and government consumption. Also, part of the purchases are made using credit. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999–2020), gives a role to money and costly credit in accentuating economic fluctuations. In particular, the modified CIA constraint combines monetary with banking theory, and thus produces a novel mechanism that allows the framework to reproduce better observed variability and correlations among model variables, and those characterising the labour market in particular.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":"35 1","pages":"122 - 133"},"PeriodicalIF":2.2,"publicationDate":"2022-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49093317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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