"Investment deflation and the dynamics of fixed capital in Russia and the assessment of the contribution of ICT and intangible assets to long-term economic growth", a report by Ksenia Bobyleva at HSE University’s 23rd Yasin International Academic Conference on Economic and Social Development (formerly known as the April Conference).
As part of the 23rd Yasin Conference, Ksenia Bobyleva presented at session A-5-4 on Measuring Economic Growth. Investment in ICT capital and intangible assets are a significant growth factor in the knowledge economy.
Special issue of Review of Income and Wealth published
A special issue of the journal Review of Income and Wealth has been published, dedicated to the conference “Experiences and Challenges in the Study of Income and Wealth in Eastern Europe and the CIS”. The conference was held in Moscow, at HSE University, together with the International Association for Research on Income and Wealth on September 17–18, 2019
Ilya Voskoboinikov participated in the roundtable "Sources of economic growth in the face of isolation and external shocks"
The roundtable discussed the issues of growth limitations for the Russian economy, sources of growth in conditions of isolation, import substitution opportunities, reserves for increasing the efficiency in the distribution of resources, and the role of the state in restructuring value chains.
"Market defects, intersectoral interactions and industrial policy in the Russian economy" report by Anton Tolokonnikov at the XXIII Yasin International Scientific Conference
Within the framework of the XXIII Yasin International Scientific Conference on Problems of Economic and Social Development, at session A-5-3. Macroeconomic policy and long-term growth, the report "Market defects, intersectoral interactions and industrial policy in the Russian economy" was delivered by Anton Tolokonnikov.
Market imperfections, intersectoral relations and industrial policy in the Russian economy
The inefficient distribution of resources leads to a lower rate of economic growth and a lower level of social development compared to what can potentially be reached. This is due to distorting taxes and subsidies, and market imperfections. Market imperfections are the costs incurred by economic agents to overcome obstacles related to imperfections of competition, information asymmetry, and barriers to market access. The impact of market imperfections is determined by the structure of intersectoral relations. Market imperfections in the upstream part of production chain (intermediate goods production) bring larger distortions than market imperfections in the downstream part of production chain (closer to final goods). The correlation of the sectoral structure of taxes and subsidies with market imperfections can increase the efficiency of resource allocation in the economy and, thus, increase output and social welfare. The instrument of such improvement is the industrial policy, which contributes to a change in the sectoral structure of net taxes with respect to market imperfections. To what extent do the criteria of the industrial policy used in Russia contribute to a more efficient distribution of resources in the economy? What are the possibilities for improving it? In this article we use approach from Liu (2019) and Input-Output tables for Russia in 2016 to arrange sectors in accordance with the size of the effect of a subsidy of 1 ruble on aggregate output. The highest effect is in supporting sectors, producing productive services, for instance, car and equipment rental services; financial intermediation services; some transport services. It is shown that support for industries with a high proportion of intermediate products in output leads to an increase in aggregate output. Support of sectors with a high employment-to-value-added ratio leads to a decrease in aggregate output.