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TERRA ECONOMICUS

Public administration as the subject matter for institutional analysis


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Tambovtsev V.L., Rozhdestvenskaya I.A. (2025). Public administration as the subject matter for institutional analysis. Terra Economicus 23(1), 6–20 (in Russian). DOI: 10.18522/20736606-2025-23-1-6-20

Research in public and municipal administration (PMA) is generally considered to be interdisciplinary, drawing on a range of sciences and combining their typical methods. At the same time, in different countries these studies are influenced by different fundamental sciences: political science predominates in some places; legal science in others; and economics plays no role anywhere. We proceed from the assumption that modern economics, including a range of institutional research programs, has the potential to contribute to PMA research, which could significantly expand both theoretical and applied research opportunities, thereby enhancing productivity and effectiveness of state policy implementation. Based on an analysis of foreign and domestic literature, the first section of this article examines the experience of applying institutional analysis in PMA studies, evaluating its alternative approaches and outcomes, including inadequate assessments of new institutional economics applications in this field. In particular, we focus on principal-agent economic models and principal-agent sociological theory, frequently confused and mistaken for a unified concept, which leads to misunderstandings. This section also analyzes the main tenets of organizational (sociological) institutionalism, often perceived as being the sole form of institutionalism. A second section of the article suggests two areas for PMA investigation where significant potential exists for generating useful outcomes through the application of new institutional economics – an area currently underutilized in public administration research. We conclude with a summary of our findings.

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The financial instability hypothesis almost 50 years later


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Rozmainsky I.V. (2025). The financial instability hypothesis almost 50 years later. Terra Economicus 23(1), 21–36 (in Russian). DOI: 10.18522/2073-6606-2025-23-1-21-36

The article provides an overview of the theoretical content and empirical applications of the financial instability hypothesis formulated by Hyman Minsky and also known as the financial fragility hypothesis. It is shown that this theory is a development of John Maynard Keynes’ ideas about the internal instability of the capitalist system. According to this hypothesis, as economic recovery progresses, firms move to more “fragile” financing regimes, in which their cash flows begin to be insufficient to meet debt obligations. The longer prosperity lasts, the greater the proportion of firms characterized by “fragile” financing regimes. According to this hypothesis, the proportion of “fragile” firms should reach a maximum before and at the height of the recession. Thus, “stability is destabilizing”. The experience of the Great Recession of 2008–2009 increased interest in the financial instability hypothesis, leading to a large number of empirical studies over the past fifteen years, based on data from countries such as the United States, Western Europe, Latin America, Asia, Russia, etc. The article attempts to comprehend and summarize these studies. Most of these studies conclude that private firms accumulated financial fragility before the Great Recession and the Recession related to the COVID-19 pandemic, as well as, in some European countries, before the European Debt crisis. The cases of applying the financial instability hypothesis to non–trivial cases are also considered, from the consequences of company diversification to the consequences of institutional reforms. The issues of analyzing the financial fragility of the public sector and the household sector are also discussed.

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Housing precarity in Russia’s regions and its connection with housing satisfaction and intentions to improve housing conditions


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Litvintsev D.B. (2025). Housing precarity in Russia’s regions and its connection with housing satisfaction and intentions to improve housing conditions. Terra Economicus 23(1), 37–50 (in Russian). DOI: 10.18522/2073-6606-2025-23-1-37-50

Precarious housing (also known as housing precarity) is a modern scientific concept that describes the instability and vulnerability of housing situations, both for individual households and entire regions. This concept was initially proposed by European scholars in the late 2010s. Measurement methods for assessing the level of precarity have become fundamental for studies in countries where people face challenges related to affordability, security, and quality of housing. This article applies existing methods of measuring housing precarities from Europe, the USA, and Australia in the Russian context. I develop a Regional Housing Precarities Index (RHPI) to evaluate and compare housing situations across regions of the Russian Federation. The sources of information include official data from the Federal State Statistics Service, the Bank of Russia, the Prosecutor’s General Office, and the Ministry for Emergency Situations. The index was constructed using minimax normalization and checks for multicollinearity. Adequacy of the model was established through correlation analysis of RHPI values with migration data from Rosstat, housing satisfaction data from the Russian Public Opinion Research Center (VCIOM), and intentions to improve living conditions from Comprehensive Monitoring of Living Standards of the Population. The results show a significant relationship between housing precarity and migration growth. Higher housing precarity correlates with lower migration, while higher housing precarity is associated with low satisfaction and higher intentions to improve conditions. Cluster analysis revealed four groups of regions with different levels of precarious housing. The study concludes that RHPI has limitations and suggests further research.

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The determinants of subjective well-being: An assessment for Russian cities based on new data


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Starodubets N., Turgel I. (2025). The determinants of subjective well-being: An assessment for Russian cities based on new data. Terra Economicus 23(1), 51–65. DOI: 10.18522/2073-6606-2025-23-1-51-65

Acknowledgment: The research funding from the Ministry of Science and Higher Education of the Russian Federation (Ural Federal University project within the Priority-2030 Program) is gratefully acknowledged.

Happiness is what people always seek. In recent decades, there has been a desire to measure happiness and understand what influences it, considering the place of residence. Given the increasing global importance of cities and their role in Russian state policy to improve quality of life, it is crucial to understand the factors that influence citizens’ subjective well-being. This research aims to study the impact of social, economic, environmental, and urban factors on the subjective well-being of residents in Russian cities. To achieve this goal, we reviewed empirical studies focused on the influence of various factors on subjective well-being. Then we used a dataset published for the first-time on VEB.RF platform. Related data characterize the quality of life in 115 cities in Russia. We justify the use of a double log multiple regression model to identify the domains of subjective well-being. The calculations show that satisfaction with cultural life, safety, environmental conditions, and beautification of urban areas are the most significant determinants. It was found that city size does not affect subjective well-being determinants. Aligning government and municipal policies to key well-being domains can attract citizens and support sustainable development by creating inclusive, safe and resilient cities.

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Tax literacy: An empirical study of a Russian region


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Ilynykh S.A. (2025). Tax literacy: An empirical study of a Russian region. Terra Economicus 23(1), 66–78 (in Russian). DOI: 10.18522/2073-6606-2025-23-1-66-78

Tax literacy is considered in terms of social meaning. It not only illustrates the individual’s tax culture and the culture of society but also reflects moral and financial responsibilities of the taxpayers. Economists argue that tax literacy leads to individuals being able to better assess tax risks associated with financial transactions and ruinous consumer debt or speculation in the stock market. In the longer term, this increases confidence in financial institutions and contributes to the growth of Russia’s economy. Tax sociology covers both state policy and legislation on taxes at the macro-level and the behavior of taxpayers at the micro-level, including reasons for avoiding taxes. The article reports on a study of tax literacy among people living in the Novosibirsk region, a large region of Russia, and in Novosibirsk itself. Using data from a survey of residents, it was found that most respondents rated their tax literacy as average, while the survey also revealed significant gaps in knowledge about taxation. Overall, only half the respondents understood how taxes contribute to the budget of the Russian Federation. When it comes to paying taxes, most people are law-abiding, either paying them independently or after receiving a notice. However, respondents had less knowledge about penalties for non-compliance with tax laws. The study found that most Russians are willing to comply with tax obligations but need more education on tax matters. Therefore, attention should be given to aspects such as tax awareness, tax ethics, tax incentives, trust in authorities, and civic responsibility.

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The study of the resilience of arctic settlements using narrative analysis (The case of Tiksi)


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Gordyachkova O.V., Kalavriy T.Yu. (2025). The study of the resilience of arctic settlements using narrative analysis (The case of Tiksi). Terra Economicus 23(1), 79–92 (in Russian). DOI: 10.18522/2073-6606-2025-23-1-79-92

This article examines the factors that are most important for ensuring resilience in Arctic conditions using the case study of Tiksi, an Arctic settlement in the Sakha Republic (Yakutia). We rely on the concept of resilience, which is closely related to the concept of sustainable development. The novelty of this study lies in the fact that it identifies new aspects of the resilience in Arctic socio-economic systems. We conducted a narrative analysis of the interviews with local residents, comparing the results with resilience factors previously identified and ranked by experts – scientists and practitioners, including those living in the area under study. The findings showed that the residents of the settlement attached greater importance to factors such as “Presence of environmental problems in the Arctic” and “Climate change”, while experts assigned these factors lower ranks. We also found that respondents rarely touched upon the topics of the industrial development of the region or the presence of subsoil users, the prospects for the Northern Sea Route, etc. Experts rank mineral and raw materials third among external factors, while residents consider mutual assistance and support to be one of the key factors in dealing with harsh living conditions and environmental and climate change.

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Institutional transformations of Russian local self-government: Lessons for sustainable economic development of the region


TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Strielkowski W., Kalyugina S., Mukhoryanova O., Fursov V. (2025). Institutional transformations of Russian local self-government: Lessons for sustainable economic development of the region. Terra Economicus 23(1), 93–102. DOI: 10.18522/2073-6606-2025-23-1-93-102

Acknowledgment: The paper was supported by the Russian Science Foundation, project No. 23-28-10154, https://rscf.ru/ project/23-28-10154/

Our paper analyzes the outcomes of the institutional transformations of local self-government (public authority) in the Russian Federation with a special focus on regional sustainable economic development. Under the current ongoing pilot reform of the selected territorial organizations of local self-governments that envisages the transition to a single-level model, the social and economic development of Russian municipalities is undergoing profound changes that would have deep institutional implications for the entire regional economic systems. One of the selected pilot regions for these reforms is the Stavropol Region of Russia. In the empirical part of the paper, we are presenting the results of the survey that was conducted between November and December 2023 among local residents and stakeholders of the Stavropol Region by the researchers from the Institute of Economics and Management of the North-Caucasus Federal University and the representatives of the Association “Council of Municipalities of the Stavropol Territory”. Our sample included 858 respondents aged from 15 to 82. Our results demonstrate that the perceived impact of the administrative reform varies significantly across age groups, place of residence, and settlement sizes. Residents of medium or smaller settlements and towns, as well as respondents aged between 36 and 60 proved to be more likely to perceive positive changes induced by the administrative institutional reforms. These results are of a special relevance for the state and municipal stakeholders and policymakers as well as for the local residents who are keen on promoting regional sustainable economic development and growth.

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Economic and institutional aspects of India’s economic development in the 21st century



TERRA ECONOMICUS, Vol. 23, No 1,

Citation: Čajková A., Čajka P. (2025). Economic and institutional aspects of India’s economic development in the 21st century. Terra Economicus 23(1), 103–117. DOI: 10.18522/2073-66062025-23-1-103-117

Acknowledgment: This paper was supported by the Grant KEGA 026UKF-4/2022 “India in contemporary international relations”.

This paper examines the economic and institutional aspects of India’s development in the 21st century, focusing on the analysis of the factors that determine the country’s economic growth as well as the challenges that the Indian economy currently faces. At the moment, India represents one of the most dynamically developing economies in the world, which is clearly predisposed by its positive demographic growth. India is already the most populous country in the world, which creates prospects of harnessing the labor force, as well as skilled and educated labor force, for the continuous positive economic growth of the country in the 21st century. Nevertheless, Indian GDP declined at the beginning of the third decade of the 21st century mainly due to the impact of the COVID-19 pandemic and the strict lockdown and social distancing measures that were put in place to control the spread of the coronavirus. These measures led to a sharp decline in economic activity in several sectors, including manufacturing, construction, as well as services. At the same time, the Indian economy is now showing signs of recovery after the perilous year of 2021. This paper demonstrates how the Indian government has taken several measures to promote economic growth as well as various policy reforms aimed at encouraging investment and consumption for supporting the economic recovery. In this study, we also discuss the principles of institutional economics and their specificities in the case of India, in particular path dependency and others, comparing the introduced reforms and their impacts on selected indicators with China as a similarly strong and large economy.

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The echoes of a distant war: How the Second World War changed the American economy and society. Reflecting on the book “The Economic Consequences of U.S. Mobilization for World War II” by Alexander J. Field

 
TERRA ECONOMICUS, Vol 23, No 1, 2025/03/26

Citation: Fomin D.A. (2025). The echoes of a distant war: How the Second World War changed the American economy and society. Reflecting on the book “The Economic Consequences of U.S. Mobilization for World War II” by Alexander J. Field. Terra Economicus 23(1), 118–128 (in Russian). DOI: 10.18522/2073-6606-2025-23-1-118-128

Acknowledgment: The study is performed within the research and development plan stated by the Institute of Economics and Industrial Engineering of the Siberian Branch RAS. Project: 5.6.6.4 (0260-2021-0008), Strategic Methods and Models of the Russian Economy Development in a Changing Macroeconomic Reality.

The representatives of the social sciences and general public share the widespread view that war, with all its undoubtful losses and destruction, can be a source of economic growth, reduce unemployment, harmonize social relations, and drive scientific and technological progress. Numerous statistical data, sociological observations, and analyses of innovation activities seem to support this idea. The book written by Alexander J. Field, an American economic historian, challenges this view. Field argues that the success of US military economy was due to surplus production assets accumulated during peacetime, enormous labor reserves, and significant intellectual potential of pre-war US. War led to predatory use and destruction of resources accumulated by the country, causing a post-war economic and social catastrophe. Alexander J. Field notes that the concept of war as a force for progress is an extremely dangerous myth rooted in powerful American arms corporations and used for profit-making through escalating military power around the world. Written during a time of increasing US military spending and a new arms race, Alexander J. Field’s book highlights the dangers of economic militarization and the consequences of heightened tensions.

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