Financial Journal Vol.15 No.1 2023
Interregional Differences in Inflation through the Prism of Ackley’s Theory, p. 8-25
In Russia inflation, as measured by the consumer price index (CPI), varies greatly from region to region. This study aims to find an answer to the following question: does there exist a long-term, equilibrium relationship between these differences and interregional differences in the cost of production, delivery and sale of domestic goods and the cost of imported goods? This research question stems from the markup theory of inflation proposed by G. Ackley, who assumed that inflation is a markup on the cost of labor and materials and the cost of living imposed, respectively, by firms and workers to protect profits and wages. Our empirical model of regional CPI includes the unit labor cost, the cost of freight and the cost of imported goods (all in index form). Econometrically, the model is an error-correction model derived from the ARDL model. The pooled mean group estimator is used to estimate the model’s parameters for a panel of 80 regions for the years 2000–2020. Our results do not reject the hypothesis of long-run homogeneity. For a given level of inflation, an increase in unit labor costs would cause prices to adjust completely in the long run, leaving the markup unchanged. Although Ackley’s theory calls for controlling the markup with the usual instruments of monetary and fiscal policies, it finds them inadequate and allows to conclude that regional authorities are able to contain price increases through industrial policy.
Keywords: region, inflation, Ackley, markup, costs, cointegration
JEL: C33, C53, E37
For citation: Alekhin B.I. (2023). Interregional Differences in Inflation through the Prism of Ackley’s Theory. Financial Journal, 15 (1), 8–25 (In Russ.).
© Alekhin. B.I., 2023
P.V. Stroev, O.V. Pivovarova, Kh.V. Sheozhev, A.I. Dudnik
Regions with Low Financial Sustainability: Analysis and Enhancement of Development, p. 26-44
This article presents an analysis of the socio-economic development and fiscal position of the subjects of the Russian Federation with low financial sustainability. The existing domestic and foreign approaches to understanding the concept of "financial sustainability of territory" are analyzed. It is proved that the regions with low financial sustainability include the subjects of the Russian Federation with a high level of gratuitous receipts in the structure of the regional budget and lagging behind the average Russian regions in terms of basic economic parameters. The relevance of the study lies in identifying problems that hinder the economic growth of such regions, as well as in developing measures to improve interbudget relations. ITo carry out the analysis and identify the specifics of management of these territories, the authors identify a group of regions with low financial sustainability, having different geographical location and degree of intensity of this problem (the Republics of Mordovia and Tyva, the Trans-Baikal Territory, the Pskov and Oryol Regions, the Jewish Autonomous Region), and apply an original methodological approach based on the assessment of the socio-economic situation and the fiscal position. As a result, both general socio-economic (depopulation, low wages, unemployment, depreciation of fixed assets, low investment and innovation activity) and fiscal (budget imbalance, low level of financial independence, debt burden) problems of these subjects of the Russian Federation, as well as problems specific to each of them, are identified. Measures to enhance economic development and growth of the income base of regions with low financial sustainability are proposed, and suggestions for improving regulatory legal acts in the field of state regional management are formulated.
Keywords: financial dependence of regions, regional financial sustainability, economic growth, regional debt, fiscal position, spatial development
JEL: H61, H77, O18, P25, R11, R12, R58
Acknowledgments: the article was prepared as part of the research work in Financial University.
For citation: Stroev P.V., Pivovarova О.V., Sheozhev Kh.V., Dudnik А.I. (2023) Regions with Low Financial Sustainability: Analysis and Enhancement of Development. Financial Journal, 15 (1), 26–44 (In Russ.).
© Stroev P.V., Pivovarova О.V., Sheozhev Kh.V., Dudnik А.I., 2023
V.V. Vagin, V.A. Paksivatkina
Civil Finance, p. 45-57
The article highlights the experience of civic participation in state and municipal management and financial aspects of civic self-organization in different countries of the world. The main forms of cofinancing projects by the population or collecting interest-free loans through civil mutual assistance are determined. Russian practices of financial participation of citizens in the implementation of projects of common interest are identified: co-financing of initiative budgeting projects, practices of self-taxation of citizens, co-financing of projects in the implementation of certain state programs and national projects, as well as co-financing of projects on crowdfunding platforms. Based on the analysis and review of scientific literature, the conclusion was made about the need to define and describe a new phenomenon in the field of public finance — "civil finance", which refers to financial resources and relations between citizens themselves and between citizens and state institutions in the process of implementing management decisions that affect the interests of urban and rural residents.
Keywords: civil finance, initiative budgeting, participatory budgeting, civic participation in state and municipal management, initiative payments
For citation: Vagin V.V., Paksivatkina V.A. (2023). Civil Finance. Financial Journal, 15 (1), 45–57(In Russ.).
© Vagin V.V., Paksivatkina V.A., 2023
V.V. Nazarova, S.I. Leshchev
Study of the Momentum Effect in the Price Dynamics of Highly Liquid Shares on the Russian Securities Market, p. 58-73
In this paper, the momentum effect is viewed as a price anomaly wherein portfolios of assets of the same return class exhibit systematic outperformance in earnings relative to a given benchmark (e.g., a market index). The study contributes to a better understanding of the momentum effect in the Russian stock market. Using data from the Russian stock market over the period 2019–2021, 16 momentum strategies were analyzed and the risks of momentum strategies related to market volatility were studied. The results show that the impulse strategy generates positive returns even when transaction costs are taken into account, has lower volatility and lower tail risk compared to the market index.
Keywords: momentum effect, momentum strategy, asset portfolio, Russian stock market, Sharpe ratio, return on assets
JEL: G11, G15
For citation: Nazarova V.V., Leshchev S.I. (2023). Study of the Momentum Effect in the Price Dynamics of Highly Liquid Shares on the Russian Securities Market. Financial Journal, 15 (1), 58–73 (In Russ.). https://doi.org/10.31107/2075-1990-2023-1-58-73.
© Nazarova V.V., Leshchev S.I., 2023
M.A. Moiseeva, T.V. Kulakova
Improving the Public Procurement System: Rating of Contractors in the Road Sector, p. 74-94
The existing methods of selecting a contractor for projects in the road sector in the Russian system of procurement do not fully take into account his business reputation and his previous experience, which negatively affects the efficiency of public procurement. Based on the analysis of international literature, it is proposed to assess the level of qualification of road builders by using a mathematical model of the complex indicator of their experience. The key idea of the proposed approach is to develop an integral indicator that characterizes the previous experience of contractors in performing a certain type of work. It is assumed that this indicator will be calculated automatically on the basis of data from the Unified Information System in Procurement. The proposed changes will improve the efficiency of the procurement system and ensure that contractors obtain the competencies necessary for high-quality and timely implementation of the relevant road works.
Keywords: rating, public procurement system, road sector, qualification of contractors
JEL: R41, R42, R48
Financing: the article was prepared based on the results of research carried out as part of the state task of the National Research University Higher School of Economics (registration number 121083000018-8).
For citation: Moiseeva M.A., Kulakova T.V. (2023). Improving the Public Procurement System: Rating of Contractors in the Road Sector. Financial Journal, 15 (1), 74–94 (In Russ.). https://doi.org/10.31107/2075-1990-2023-1-74-94.
© Moiseeva M.A., Kulakova T.V., 2023
K.D. Shilov, A.V. Zubarev
Factors of Ethereum Profitability as a Platform for Creating Decentrilized Applications, p. 95-115
By now, cryptocurrencies have almost become a part of the modern financial asset space, but the cryptocurrency market itself is not homogeneous, and individual cryptocurrencies can differ significantly in their properties and functions. For example, the cryptocurrency Ether is second in capitalization after Bitcoin, but the Ethereum and Bitcoin blockchains differ significantly in their properties and functions. In particular, Ethereum is the most popular digital platform for creating decentralized applications (dApps). The purpose of this work is to try to answer the question "Does the market take into account the features of the Ethereum blockchain in the price dynamics of the Ether cryptocurrency?" This question is also directly related to the search for potential fundamental factors that can explain the price dynamics of Ether. The main econometric method used in the study is generalized autoregressive conditional heteroskedasticity (GARCH) models. Having evaluated about 15 thousand different specifications of GARCH models, where various Ethereum blockchain usage metrics were used as explanatory variables, we obtained the results that Ethereum network usage metrics do not significantly correlate with Ether cryptocurrency returns. Moreover, these metrics are also unable to explain the relative strengthening/weakening of Ether relative to Bitcoin. Thus, we conclude that despite the presence of a number of special functional properties of the Ethereum blockchain, the price dynamics of the Ether cryptocurrency does not reflect them.
Keywords: cryptocurrency, Ethereum, GARCH, Bitcoin, digital assets
JEL: C22, C52, C58, E44, G12
For citation: Shilov K.D., Zubarev A.V. (2023). Factors of Ethereum Profitability as a Platform for Creating Decentrilized Applications. Financial Journal, 15 (1), 95–115 (In Russ.). https://doi.org/10.31107/2075-1990-2023-1-95-115.
© Shilov K.D., Zubarev A.V., 2023
Development of Tax Incentives for Investments in Human Capital, p. 116-133
The article discusses the basics of building a system of tax incentives for investments in human capital, capable of ensuring economic growth of the Russian Federation. The relevance of this issue is explained by three circumstances: first, investment in human capital is a key tool for protecting workers from the adverse effects of automation; second, human capital accumulation is closely correlated with income inequality and poverty levels; third, it is a key factor in stimulating rapid economic growth. The purpose of the study is to work out directions of development of tax incentives for investments in human capital on the basis of review and systematization of domestic and foreign literature. In accordance with the goal, the following tasks are defined: to identify areas of taxation influence on human capital formation; to formulate the principles of tax stimulation of investments in human capital; to characterize the tax instruments stimulating growth of investments in human capital; to highlight the state approaches to tax stimulation of investments in human capital of individuals. The scientific literature in the field of human capital development and tools for its regulation was analyzed, and the use of tax incentives was substantiated. The principles of tax stimulation of investments in human capital are formulated and described: the principle of risk minimization, the principle of multidirectionality by subjects of stimulation, the principle of differentiation by types and forms of human capital, and the principle of systemic measures of state support. The study presents three groups of tax incentives focused on the identified areas of impact and taking into account the formulated principles of stimulating investments in human capital.
Keywords: economic growth, tax incentives, investment in human capital, tax burden, employees, education
JEL: H24, J24, E24
Acknowledgments: the article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University.
For citation: Tikhonova A.V. (2023). Development of Tax Incentives for Investments in Human Capital. Financial Journal, 15 (1), pp. 116–133 (In Russ.). https://doi.org/10.31107/2075-1990-2023-1-116-133.
© Tikhonova A.V., 2023