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TERRA ECONOMICUS

The mentality of economic agents and institutional change: In search of an equilibrium model


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The article deals with an generalized agent-based model which describes the system “mentality of economic agents – social institutions”. A complex of features that qualitatively characterize the mentality of the agent is proposed. The dominance of one of these features determines the agents’ mentality type. Social institutions are classified depending on the support of a particular agents’ mental group. In the tradition of agent-based modeling, the model’s space is represented as a lattice (a set of cells) located in a limited plane’s domain. Each cell represents one of the market niches for agents to conduct business activities. The agents’ state in each time step is characterized by parameters of performance and satisfaction. While functioning, agents move from one niche to another, striving to achieve maximum performance and satisfaction with their position, depending on the institutional environment. The results of experiments are analyzed based on scenario approach and conditional synthetic data, which make it possible to estimate the process of achieving an equilibrium state by the system “mentality of economic agents – public institutions”. Research findings confirm the following. First, the higher the minimum labor productivity in society, the faster the system reaches an equilibrium state. Second, fewer agents are forced to leave the system, not finding a suitable niche to conduct activities.
Citation: Kleiner G., Rybachuk M., Ushakov D. (2021). The mentality of economic agents and institutional change: In search of an equilibrium model. Terra Economicus 19(4): 6–20. DOI: 10.18522/2073-6606-2021-19-4-6-20

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Debt monetization of the Russian economy: Key issues


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The Bank of Russia’s issuance of “primary money” over the past 20 years has been based predominantly on an increase in net international reserves on the growth of net international reserves and is only marginally supported by the growth of government and corporate securities. Many economists argue that this way of monetization violates the country’s economic sovereignty and negatively affects economic growth. In this paper, the validity of this position has been confirmed using a shift-mode reproduction model and econometric analysis. For the retrospective long-term period 2011–2019, three scenarios are considered for activation of the debt (based on government securities) monetization method: when the role of the debt method increases by 20, 50, and 70%. All three scenarios have shown that in Russia, if the actual annual average issuance rate of M0 is maintained, the GDP rate increases, and inflation decreases within the framework of 2011–2019. One reason: It is statistically established that in countries with above-average yields, the transition to the debt method reduces the degree of undervaluation of the ruble, and this process, in turn, affects investment activity and, furthermore, economic growth and inflation. Interestingly, there is no such correlation in countries with high yields (USA, Canada, most EU countries etc.). In the calculations of the three scenarios, the growth of estimated public debt over the period 2011–2019 has outstripped the growth of actual public debt. In our opinion, this outpacing is one of the conditions for normalizing macroeconomic performance.
Citation: Maevsky V., Malkov S., Rubinstein A. (2021). Debt monetization of the Russian economy: Key issues. Terra Economicus 19(4): 21–35. DOI: 10.18522/2073-6606-2021-19-4-21-35
Acknowledgment: This research is conducted within the framework of the state assignment “Synthesis of theories of switching reproduction and institutional matrices: Application to the tasks of economic policy”.

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Narrative Economics perspective on modeling national innovation system


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The paper proposes a conceptual framework for studying Russian innovation system through the lens of a narrative economics approach. Applied narrative analysis involves five stages: 1) defining the range of influential media sources; 2) highlighting relevant narratives; 3) measuring the virality of narratives and revealing their connection to certain rules and institutions; 4) identifying problem situations related to key research issues; 5) assessing the influence of narratives, ideas, rules and institutions on the problem situations. We conducted a literature review relying on the co-occurrence method, and compiled mental maps to identify three domains associated with narrative economics: financial markets; the institutional environment of economy; science and education. The narratives are proposed to be classified as a) the sources of qualitative data on certain behavioral patterns, and b) simplified models related to particular scholar traditions. The research findings show six key issues featuring Russian innovation system: public administration of innovation activities; the selection of research areas; demand-based innovation; institutional structure and competitive environment; personnel for research and innovation; human resources in research and development; intellectual property. We distinguish between two approaches that complement formal modeling. Within the ex ante approach, narrative analysis precedes modeling, allowing to make related assumptions. Ex post approach deals with the conclusions resulted from a particular model application. Relying on the research findings, we use relevant narratives to supplement the explanatory hypotheses and interpret the problem situation.
Citation: Volchik V.V., Maslyukova E.V. (2021). Narrative Economics perspective on modeling national innovation system. Terra Economicus 19(4): 36–50. DOI: 10.18522/2073-6606-2021-19- 4-36-50
Acknowledgment: This paper is supported by the Russian Science Foundation, research project RSF 21-18-00562 «Developing the national innovation system in Russia in the context of narrative economics».

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Ecosystem banks: Forms, risks and methods of regulation


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The 2019–2021 pandemic has cardinally reshaped the global economy. New platform models and ecosystems related to new technologies radically changed the rules of business organization, functioning and regulation. Business ecosystems in advanced countries are usually associated with high-tech companies (BigTech), while countries like Russia start building ecosystems on the basis of large system-forming banks (BigBank), which unite businesses from various, often unrelated sectors and geographic locations. However, the banks entering the adjacent economic spheres may lead to cross-sectoral risks in economy, as well as to the growing additional risks for creditors and investors. The article tests the methodology of the Bank of Russia. We assess the risks associated with the formation of above-limit dead assets in the banks’ returns, which may threaten the financial stability of a bank and the banking system as a whole. While modeling the assessment of cross-sectoral risks, we used the official data on three large Russian banks actively developing their ecosystems, namely, Sberbank PJSC, VTB PJSC, and Tinkoff Bank PJSC. Research findings show that: the development of ecosystems based on a system-forming bank as a core institution may lead to high risks for investors (creditors) and significant risks to the financial stability of the national economy; large Russian banks inherited from the Soviet economy an excessive amount of dead assets in the form of capital assets, non-core property, investments into non-financial institutions and investment funds, as well as other assets which do not imply refund claims; no one of the large Russian banks is able to regularly increase a secondary capital out of profits in order to neutralize both the stress-sectoral and additional risks in their activity; in Russia, ecosystems should be built relying on modern fintech companies, while a digital bank should play a merely auxiliary role, but not a dominant one.
Citation: Andryushin S., Grigoryev R. (2021). Ecosystem banks: Forms, risks and methods of regulation. Terra Economicus 19(4): 51–65. DOI: 10.18522/2073-6606-2021-19-4-51-65

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Gift exchange and critique of capitalism: From Sieber to Graeber


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The critique of capitalism evolves alongside the ongoing development of capitalism. Even though more than a few centuries passed since the widespread adoption of capitalism, the voices of critics are still loud. They argue that capitalism does more harm and there are alternative ways of constructing economic activities within the society. To show such alternatives, the critics turn to economic anthropology. Using this tool, they study the economic activities of these societies and use their experience to criticize the existing capitalist system. However, is this criticism a dynamic one? We answer this question by comparing two prominent academic researchers of their time – Nikolai Sieber and David Graeber. Sieber is the last representative of the classical political economy of the 19th century and one of the first Marxists. Sieber was a proponent of left ideology and was noted by Karl Marx himself. His main work, which relates to economic anthropology, is called “Essays on Primitive Economic Culture” (1883). Within this book, Sieber attempts to systematize the structure of primitive societies, identifying the aspects of their economic life. David Graeber is also sharing left ideology. He is an anthropologist who has gained the greatest recognition in the 21st century after publishing a book called “Debt: The first 5000 years of history” (2011). This book, like Sieber’s “Essays”, covers a vast historical period and criticizes capitalism. By comparing the criticism from Sieber and Graeber, we put their intellectual heritage into the context of critique of capitalism within the framework of economic anthropology.
Citation: Raskov D., Tereshchenko P. (2021). Gift exchange and critique of capitalism: From Sieber to Graeber. Terra Economicus 19(4): 66–76. DOI: 10.18522/2073-6606-2021-19-4-66-76

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Non-monetary inequalities in modern Russia: Specifics and dynamics under the crisis of 2020


TERRA ECONOMICUS, , Vol. 19 (no. 4),

Based on data from the all-Russian representative studies carried out by FCTAS RAS in 2018–2020, the system of non-monetary inequalities in modern Russian society and the changes that have occurred under the influence of the crisis caused by the first wave of the pandemic are analyzed. The key axes of non-monetary inequalities show a high degree of concentration: “safety cushion”, favorable employment conditions, good health and education, subjective well-being are typical for only a minority of the population. Along all these axes, the very nature of inequality is determined by the qualitative differences between the smallsized “top” and the rest of the mass strata. The position in the system of non-monetary inequalities to a greater extent differentiates the most high-income strata from other Russians, rather than the lowincome. The availability of digital opportunities is no longer concentrated in the upper strata, but their absence characterizes the lower strata. The differentiation of the working population occurs by the degree of infringement of basic rights and alienation of labor, i.e. by deprivation, while the additional benefits are available only for a minority of working Russians. The last crisis impacted differently on non-monetary inequalities, but the changes did not affect the general configuration of social space. Research findings have confirmed that inequality in the mass strata of the Russian population is associated not only with differences in the level of current income. Non-monetary inequalities are superimposed on monetary inequalities and exacerbate them rather than smooth them out.
Citation: Mareeva S.V. (2021). Non-monetary inequalities in modern Russia: Specifics and dynamics under the crisis of 2020. Terra Economicus 19(4): 77–91. DOI: 10.18522/2073-6606-2021-19-4-77-91
Acknowledgment: The article is prepared thanks to assistance by Russian Science Foundation Grant No. 17-78-20125

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Russian economic journals in the ESCI: Retrospective overview and forecast


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The representation of Russian journals in the scientometric database Web of Science Core Collection has increased with the launch of the Emerging Sources Citation Index as its part. It covered major regional journals and the titles with subject categories that had not been represented in the Web of Science before. Since the research data on certain groups of academic journals, in particular economic ones, are insufficient, we propose an approach that helps analyze the citation of Russian economic journals included in the ESCI. The analysis is based on the quantitative and qualitative assessment of bibliometric indicators. Within this framework, we also assess journals’ prospects of inclusion in the SSCI. We have identified criteria and indicators of the quality and impact of publications. Citation analysis proves that several journals can meet quantitative selection criteria, but their impact evaluations are lower than the relevant indicators of foreign journals in the SSCI. The findings of our research help outline threshold parameters, which journals should strive to meet so as to be able to compete with the world’s leading publications in terms of citation and impact. Our findings can be useful to editors who develop strategies for expanding journals’ coverage in international scientometric databases and focus on the promotion of Russian journals in the Web of Science Core Collection.
Citation: Tretyakova O.V. (2021). Russian economic journals in the ESCI: Retrospective overview and forecast. Terra Economicus 19(4): 92–109. DOI: 10.18522/2073-6606-2021-19-4-92-109

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Trends in the academic world as a scientific and educational ecosystem


TERRA ECONOMICUS, , Vol. 19 (no. 4),

This research is motivated by the problem of market-oriented universities, accompanied by management challenges, and low demand for the products of scientific and educational activities. These factors show the need for new approaches when studying the academic sphere. We aim at analyzing the “academic world” as a complex economic concept, based on specific economic relations in the field of science and education. Academic world is treated as a scientific and educational ecosystem. Empirical evidence is provided by statistics from the World Bank and UNESCO. We also rely on the data from focus groups organized in EU countries. Our findings show the role and functions of the academic world in modern society in the context of the following indicators: government expenditure on education, R&D expenditure, the number of researchers in R&D, the number of patent applications, the export of high-tech goods. The features of academic world in Russia are demonstrated. We propose a definition and a scheme of the academic world in terms of the allocation of groups and relationships between them in socio-economic environment. Besides, we show the mechanisms of interaction between the components of the academic world in Russia, considering related problems and development trends.
Citation: Borovskaya M., Lyabakh N., Masych M., Fedosova T. (2021). Trends in the academic world as a scientific and educational ecosystem. Terra Economicus 19(4): 110–126. DOI: 10.18522/2073- 6606-2021-19-4-110-126

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Economic and institutional aspects of wine consumption in the context of globalization and climate change in Europe and Russia


TERRA ECONOMICUS, , Vol. 19 (no. 4),

For centuries, wine has played an important role in the economic institutions of food security and agri-food complex. However, due to the globalization and economic development wine industry has been in the midst of a number of changes and new challenges in recent decades, to which it is forced to respond in order to maintain its competitiveness and economic efficiency. Changing consumer preferences and requirements lead to the changes in wine consumption around the world. New territories enter the wine market, which modifies the institutions and the mode of the wine trade from a global perspective. All these aspects resonate with the climate change. Wine as a crop is highly sensitive to climatic and soil conditions which results in the extraordinary sensitivity of the entire viticulture and wine-making sector. Our paper evaluates wine consumption in selected European countries and Russia in the context of climate using the beta convergence method. Beta convergence was used as research method, through which changes in differences between selected countries whose consumption exceeds 2 million hectoliters were examined. The basic sample consisted of 14 countries from Europe and Russia. The results show that globalization processes are blurring some of the differences between countries, which are converging in terms of wine consumption in the long run. At the same time, however, it can be stated that the influence of natural conditions and historically given peculiarities cannot be disregarded. National customs are also historically adapted to the climate, including the preferred types of beverages.
Citation: Navrátilová M., Beranová M., Severová L. (2021). Economic and institutional aspects of wine consumption in the context of globalization and climate change in Europe and Russia. Terra Economicus 19(4): 127–140. DOI: 10.18522/2073-6606-2021-19-4-127-140
Acknowledgment: This work was funded by the Faculty of Economics and Management, Czech University of Life Sciences in Prague (Internal Grant Agency, IGA) under Grant number 2020B0002 – “The impact of climate change on the economic performance of the viticulture and wine-making sector in the Czech Republic”.

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Sustainable tourism in the digital age: Institutional and economic implications


TERRA ECONOMICUS, , Vol. 19 (no. 4),

The term “sustainable tourism” has been in the core of the tourism industry since the last decades of the 20th century due to the globalization and digitalization of the world economy that have also led to many institutional changes. Sustainable development is now a part of tourism strategies and visions, especially when it comes to the possible links between tourism and its impact on sustainable development. In addition, the ubiquitous digitalization has also made a significant impact on both. In this paper, we analyze the role of the sustainable tourism in the digital age using the example of the Burning Man festival, an annual event held in Nevada desert each year around Labour Day weekend with nearly sixty thousand people gathering to build a temporary city full of art, music, and interactivity. Our study is based on a unique own survey questionnaire administered at Burning Man festival in 2017. We use the travel cost method for computing the non-market valuation of demand from visiting Burning Man and show how digitalization helped the event to survive amidst the COVID-19 pandemic. In addition, this paper outlines the impact that the relationship between tourism, digitalization, and sustainable development can have on the economic growth and the institutional change. We argue that sustainable tourism can meet the needs of the current tourism industry (both domestic and international), while protecting the environment, promoting future opportunities, as well as taking into account the long-term impact of tourism on local communities and the local and international economy.
Citation: Rausser G., Strielkowski W., Korneeva E. (2021). Sustainable tourism in the digital age: Institutional and economic implications. Terra Economicus 19(4): 141–159. DOI: 10.18522/2073- 6606-2021-19-4-141-159

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