Economic Theory 1

Сентябрь 8, 2022

Главная
Алгебра
Economic Theory 1

Содержание

2. Economics 40% of the grade: the “offline” classes (20% in-class test + 20% final exam) 60%
3. Economics Seminar 1-2. Economic Systems: Markets, Directives, etc.
4. Hockey Stick of Economic Progress…
9. What are Essential Institutions of Market Capitalism as a Type of Economic System? - Private Property
10. Some other Features of the Market Capitalism - Self-Interest – as the Basic Motivating Force -
11. Some Important Virtues of Market Capitalism - Freedom - Incentives - Efficiency
13. Circular flow model (with savings and investments)
14. Innovativeness As a Key to the Winning in the Competitive World!
15. Preconditions for Innovativeness – according to Kornai (2012) - Competition - Decentralized Initiative - Possibilities to
16. Hockey Stick… - of Not only Economic Progress but also - of Rising Inequality - of
17. Problems of Typical Capitalism - Instability and Crises - Unemployment - Inflation - Poverty and Inequality
18. Attractiveness of the System of the Planned Socialism - “Anarchy of Production” / Crises substituted by
19. The Rates of Economic Growth in the USSR (%)
20. Some Comparisons (1985) Housing per capita – 12 m2 (USSR), 55 m2 (USA) Motor Cars per
21. Some Defects of the Planned Socialism (on the example of the Soviet Economy) - Difficulties of
22. Special Problems of the Soviet Socialism - The large role of “production of the capital goods”
23. Concept of Transitional Economy (or Economy in Transition) Transition from “the Plan” to “the Market” Transition
24. How to Make Transition? 1) Shock Therapy – liberalization ; privatization ; stabilization… Everything should be
25. Some Statistics of the Transitional Economies – 1989 & 1997
26. Concept of Transformational Recession Transformational Recession – deep and prolonged decrease of real GDP (real output)
27. Elements of Transformational Recession - Transition from “seller market” to “buyer market” - Price/Foreign Trade Liberalization
28. Transformational Recession for Russia, Ukraine, etc.: - Falling GDP in the 1990 – 1998 - Collapse
29. The Role of Institutional Traps in Russia (Polterovich, 1999) Institutional traps are inefficient but stable norms
30. The Age Structure of the Productive Equipment in Russia in the 1990s (%)
31. The Average Age of the Russian Industrial Productive Equipment (years)
32. Some Specific Institutions of the Post-Soviet Russian Capitalism - Lack of Effective Protection of Property Rights
33. Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part 1 Share of managers which
34. Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part 2 (Johnson, Kaufmann, McMillan, Woodruff,
36. Скачать презентацию

Слайд 2

Economics
40% of the grade: the “offline” classes (20% in-class test +

20% final exam)
60% of the grade: the online-course “Introduction to Economic Theories” on the Coursera platform: https://coursera.org/learn/intro-economic-theories

Слайд 3

Economics
Seminar 1-2. Economic Systems: Markets, Directives, etc.

Слайд 4

Hockey Stick of Economic Progress…

Слайд 5

Слайд 6

Слайд 7

Слайд 8

Слайд 9

What are Essential Institutions of Market Capitalism as a Type of

Economic System?

- Private Property (as opposed to State Property and other types of Property)
- Market Coordination (as opposed to both Gift Exchange and Directives)
- Firm as a Productive Unit (as opposed to both Family-Based Production and “Socialistic” Enterprises)

Слайд 10

Some other Features of the Market Capitalism
- Self-Interest – as the

Basic Motivating Force
- Competition – as the Basic Regulatory Force
- Fixed Capital and Advanced Technologies
- Specialization
- Use of Money
- Motive of Profit
- Consumer Sovereignty

Слайд 11

Some Important Virtues of Market Capitalism
- Freedom
- Incentives
- Efficiency

Слайд 12

Слайд 13

Circular flow model (with savings and investments)

Слайд 14

Innovativeness
As a Key to the Winning in the Competitive World!

Слайд 15

Preconditions for Innovativeness – according to Kornai (2012)
- Competition
- Decentralized Initiative
-

Possibilities to Make Experiments with Innovations
- Expectations of Huge Material Reward for Innovations
- Access to External Financial Resources

Слайд 16

Hockey Stick…
- of Not only Economic Progress but also
- of Rising

Inequality
- of Increasing Pollution/Waste

Слайд 17

Problems of Typical Capitalism
- Instability and Crises
- Unemployment
- Inflation
- Poverty and

Inequality
- Budget Deficits and Government Debt
- Disequilibrium of Balance of Payments
- etc.

Слайд 18

Attractiveness of the System of the Planned Socialism
- “Anarchy of Production”

/ Crises substituted by “Plan” (by Directives)
- Private Property / Exploitation substituted by “Folk” Property (by State Property)
- More than Full Employment
- Fixed Prices
- Free Higher Education, Health Care etc.
- etc.

Слайд 19

The Rates of Economic Growth in the USSR (%)

Слайд 20

Some Comparisons (1985)
Housing per capita – 12 m2 (USSR), 55 m2

(USA)
Motor Cars per 1000 people – 55 (USSR), 550 (USA), 429 (Germany)
Telephones per 1000 people – 75 (USSR), 759 (USA), 598 (Germany)

Слайд 21

Some Defects of the Planned Socialism (on the example of the

Soviet Economy)

- Difficulties of Coordination of Interests
- Lack of Relevant Information
- Monopolism
- Soft Budget Constraints and Shortage
- Barriers to Innovativeness
Kornai (1980; 2012), Gregory (2004)

Слайд 22

Special Problems of the Soviet Socialism
- The large role of “production

of the capital goods”
- The large role of the military sector
- Almost fully destroyed private entrepreneurial sector
- Deeply rooted anti-market mentality
- Cruel legal punishment of entrepreneurial activity (examples are the case of Rokotov & Faibishenko and the cases of Aizenshpis)

Слайд 23

Concept of Transitional Economy (or Economy in Transition)
Transition from “the Plan”

to “the Market”
Transition from State Property to Private Property
Transition to Freedom and Efficiency…
* * *
Transitional economy as the economic system with radically changing institutions

Слайд 24

How to Make Transition?
1) Shock Therapy – liberalization ; privatization

; stabilization…
Everything should be made fast and simultaneously (Poland, Czech Republic, Russia [?])
2) Gradualism – slow and gradual reforming (China, Vietnam, Hungary)

Слайд 25

Some Statistics of the Transitional Economies – 1989 & 1997

Слайд 26

Concept of Transformational Recession
Transformational Recession – deep and prolonged decrease of

real GDP (real output) due to institutional changes caused by “Transition” (Kornai, 1994).

Слайд 27

Elements of Transformational Recession
- Transition from “seller market” to “buyer market”
-

Price/Foreign Trade Liberalization
- Rupture in the Economic Coordination or Institutional Hiatus
- Hardening Budget Constraints
- Underdeveloped Financial Sector

Слайд 28

Transformational Recession for Russia, Ukraine, etc.:
- Falling GDP in the 1990

– 1998
- Collapse of Investment in the Fixed Capital
- Technological Degradation
- Rising Poverty and Inequality
- Criminalization
- Suicides
Etc.

Слайд 29

The Role of Institutional Traps in Russia (Polterovich, 1999)
Institutional traps are

inefficient but stable norms of behavior. In particular, such norms can emerge in the conditions of transition.
Institutional traps are supported by mechanisms of coordination, learning, linkage and cultural inertia.
Examples of institutional traps: barter; arrears; corruption; tax evasion; self-fulfilling pessimistic expectations, etc.
How to break out of institutional traps?

Слайд 30

The Age Structure of the Productive Equipment in Russia in the

1990s (%)

Слайд 31

The Average Age of the Russian Industrial Productive Equipment (years)

Слайд 32

Some Specific Institutions of the Post-Soviet Russian Capitalism
- Lack of Effective

Protection of Property Rights and Contracts / Lack of Enforcement (one of the examples is “Night of the Long Scoops”)
- Lack of Real Competition due to Administrative Barriers to Entry and other aspects of Bureaucratic “Pressure”
- “Fusion” of Business and Authority
- Lack of Independence of Court System
- Abuse of Police Power (one of the examples is the Case of Dmitry Lopatin)
- Large role of the Shadow Economy and Criminal Groups
- Corruption and Bribes

Слайд 33

Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part

Share of managers which would refuse to invest 100 US dollars now in order to receive 200 US dollars 2 years after: in Poland - 22.1%, in Slovakia – 24. 6%, in Russia – 98. 9%.
Share of firms’ sales in other cities and/or countries: in Poland – 64. 7%, in Slovakia – 67. 6%, in Russia – 23. 3%.
Share of firms which would ready to buy good from new supplier for 10%-less-price rather than from the “established” supplier: in Poland – 42. 5%, in Slovakia – 48. 4%, in Russia – 1. 4%.
Share of firms reporting that companies pay for “protection” from mafia: in Poland – 8.0%, in Slovakia – 14. 9%, in Russia – 92. 9%.
Share of respondents believing that firms illegally pay for government’s service: in Poland – 20%, in Slovakia – 38%, in Russia – 91%.
Source: (Johnson, Kaufmann, McMillan, Woodruff, 2000)

Слайд 34

Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part

2 (Johnson, Kaufmann, McMillan, Woodruff, 2000)

Economic Theory 1

Содержание

Economics40% of the grade: the “offline” classes (20% in-class test +

EconomicsSeminar 1-2. Economic Systems: Markets, Directives, etc.

Hockey Stick of Economic Progress…

What are Essential Institutions of Market Capitalism as a Type of

Some other Features of the Market Capitalism- Self-Interest – as the

Some Important Virtues of Market Capitalism- Freedom- Incentives - Efficiency

Circular flow model (with savings and investments)

InnovativenessAs a Key to the Winning in the Competitive World!

Preconditions for Innovativeness – according to Kornai (2012)- Competition- Decentralized Initiative-

Hockey Stick…- of Not only Economic Progress but also- of Rising

Problems of Typical Capitalism- Instability and Crises- Unemployment- Inflation- Poverty and

Attractiveness of the System of the Planned Socialism- “Anarchy of Production”

The Rates of Economic Growth in the USSR (%)

Some Comparisons (1985)Housing per capita – 12 m2 (USSR), 55 m2

Some Defects of the Planned Socialism (on the example of the

Special Problems of the Soviet Socialism- The large role of “production

Concept of Transitional Economy (or Economy in Transition)Transition from “the Plan”

How to Make Transition? 1) Shock Therapy – liberalization ; privatization

Some Statistics of the Transitional Economies – 1989 & 1997

Concept of Transformational RecessionTransformational Recession – deep and prolonged decrease of

Elements of Transformational Recession- Transition from “seller market” to “buyer market”-

Transformational Recession for Russia, Ukraine, etc.:- Falling GDP in the 1990

The Role of Institutional Traps in Russia (Polterovich, 1999)Institutional traps are

The Age Structure of the Productive Equipment in Russia in the

The Average Age of the Russian Industrial Productive Equipment (years)

Some Specific Institutions of the Post-Soviet Russian Capitalism- Lack of Effective

Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part

Comparative Analysis of Informal Institutions – Russia and “Counterparts” (1997), part

Похожие презентации

Economics
40% of the grade: the “offline” classes (20% in-class test +

Economics
Seminar 1-2. Economic Systems: Markets, Directives, etc.

Some other Features of the Market Capitalism
- Self-Interest – as the

Some Important Virtues of Market Capitalism
- Freedom
- Incentives
- Efficiency

Innovativeness
As a Key to the Winning in the Competitive World!

Preconditions for Innovativeness – according to Kornai (2012)
- Competition
- Decentralized Initiative
-

Hockey Stick…
- of Not only Economic Progress but also
- of Rising

Problems of Typical Capitalism
- Instability and Crises
- Unemployment
- Inflation
- Poverty and

Attractiveness of the System of the Planned Socialism
- “Anarchy of Production”

Some Comparisons (1985)
Housing per capita – 12 m2 (USSR), 55 m2

Special Problems of the Soviet Socialism
- The large role of “production

Concept of Transitional Economy (or Economy in Transition)
Transition from “the Plan”

How to Make Transition?
1) Shock Therapy – liberalization ; privatization

Concept of Transformational Recession
Transformational Recession – deep and prolonged decrease of

Elements of Transformational Recession
- Transition from “seller market” to “buyer market”
-

Transformational Recession for Russia, Ukraine, etc.:
- Falling GDP in the 1990

The Role of Institutional Traps in Russia (Polterovich, 1999)
Institutional traps are

Some Specific Institutions of the Post-Soviet Russian Capitalism
- Lack of Effective