Browsing by Subject "talousuudistus"

Sort by: Order: Results:

Now showing items 21-40 of 117
  • Sutela, Pekka (1995)
  • Polterovich, Victor (2000)
    BOFIT Discussion Papers 1/2000
    The paper is intended to explain low sensitivity of employment decisions observed in transition economies where insider ownership prevails and capital markets are not highly developed.We introduce a stability concept for employment levels of a labor-managed firm and prove that there exists a segment of stable employment levels. If a level belongs to the interior of the segment then the firm keeps the same labor input level under any not too large changes. By contrast, the wage rate is responsive.Only the firms on the boundaries of the segment may reconsider employment decisions. Deterioration of market conditions entails decreasing labor inputs for firms with much excess labor and, the same time, increases employment for firms with low levels of labor input.This creates inter-firm flows of workforce and restrains the rise of total unemployment.Stability segments exist also for firms where employment-wage decisions are made by bargaining between workers and managers, and may exist for manager-dominated firms as well. Several concepts of labor hoarding are discussed.
  • Solanko, Laura (2006)
    Suomen Pankki. E 36
    This study comprises an introductory section and three essays analysing Russia's economic transition from the early 1990s up to the present.The papers present a combination of both theoretical and empirical analysis on some of the key issues Russia has faced during its somewhat troublesome transformation from state-controlled command economy to market-based economy. The first essay analyses fiscal competition for mobile capital between identical regions in a transition country.A standard tax competition framework is extended to account for two features of a transition economy: the presence of two sectors, old and new, which differ in productivity; and a non-benevolent regional decision-maker.It is shown that in very early phase of transition, when the old sector clearly dominates, consumers in a transition economy may be better off in a competitive equilibrium. Decision-makers, on the other hand, will prefer to coordinate their fiscal policies. The second essay uses annual data for 1992- 2003 to examine income dispersion and convergence across 76 Russian regions.Wide disparities in income levels have indeed emerged during the transition period.Dispersion has increased most among the initially better-off regions, whereas for the initially poorer regions no clear trend of divergence or convergence could be established.Further, some albeit not highly robust evidence was found of both unconditional and conditional convergence, especially among the initially richer regions.Finally, it is observed that there is much less evidence of convergence after the economic crisis of 1998. The third essay analyses industrial firms' engagement in provision of infrastructure services, such as heating, electricity and road maintenance.Using a unique dataset of 404 large and medium-sized industrial enterprises in 40 regions of Russia, the essay examines public infrastructure provision by Russian industrial enterprises. It is found that to a large degree engagement in infrastructure provision, as proxied by district heating production, is a Soviet legacy.Secondly, firms providing district heating to users outside their plant area are more likely to have close and multidimensional relations with the local public sector. Key words: Russia, transition, regional issues, tax competition, infrastructure
  • Kuus, Toivo (1997)
    Since regaining independence, Estonian has carried out its economic and political reforms with dispatch and determination.Estonia has now succesfully completed primary tasks faced by most transition countries, ie. trade liberalization, macroeconomic stabilization, privatization, monetary reform, strengthening of financial sector etc.One of the main challanges presently facing Estonia is the EU membership.If Estonia intends to become a member of the EU in the years ahead, EMU will comprise the framework of development also for the Estonian economy.What then are the implications of EMU memberhip for Estonia ?Benefits include elimination of currency transaction costs, reduction of costs of hedging against exchange rate risk, increased competition due to price transparency, increased foreign trade, elimination of problems related to fluctuating exchange rates, low inflation, and benefits related to increased international role of the common European currency euro. Costs related the EMU and a common currency depend on the structure of Estonia's economy vis a vis other European economies.In general, if EMU member states have similar economic structures and economic problems, then the costs will be low, because a common EMU economic policy suit every country's individual needs.If this is not the case, then the costs of a common currency will be high. Estonia's participation in euro area requires a fulfilment of the Maastricht convergnece criteria on interest rate, exchange rate, price stability as well as public debt.In respect of the government deficit and debt, succesfull economic reform and accompanying economic growth have created a situation wherein Estonia's debt burden is relatively small and the Estonian government can easily borrow money from international markets. Regarding to price stability, inflation rate in Estonia is still considerably above the level of Western European countries.Also, long-term interest rates still exceed the reference value of the EMU criterion.Finally, the criterion of exchange rate stability can be considered to be essentially fulfilled in Estonia because the kroon has already for five years been pegged to the Deutschemark, one of the most stable currencies in Europe. If Estonia remains outside the official euro area after accession, the EMU will still have an enormous impact on its economic and monetary policies.For Estonia, as well as for all new member states, the pursuit of strict macroeconomic and fiscal policies is of essential importance. Keywords:Estonia, EMU, EU, integration, enlargement, monetary policy
  • Sepp, Urmas (1995)
  • Delatte, Anne-Laure; Fouguau, Julien; Holz, Carsten A. (2011)
    BOFIT Discussion Papers 27/2011
    Published in Post-Communist Economies, Volume 26, Issue 3, September 2014, Pages 376–400
    We examine the transition process from a centrally planned to a market-based monetary system in China, with the objective of giving a functional form to the transition in money demand. Applying the cointegrating Time-Varying Smooth Transition Regression model proposed by Choi and Saikkonen (2004) on a constructed dataset spanning the period from 1984 to 2010, and using a seasonal unit-root test developed by Hylleberg et al. (1990), our findings invalidate much of the earlier literature. Our examination of disaggregate as well as aggregate money balances yields the following findings. (1) Households have an infinite demand for money at prevailing interest rates. (2) Enterprises have gradually gained decision-making authority over their deposits. (3) Money is a complement rather than a substitute to capital and this has become more prominent over the period. (4) The credit plan has ceased to be a significant driver of money holdings after 1997. (5) In the aggregate monetary sphere, the deposit interest rate has gained only a minor role as a monetary instrument, and only since 2000.
  • Bonin, John; Wachtel, Paul (2002)
    BOFIT Discussion Papers 9/2002
    Published in Financial Markets, Institutions and Instruments vol 12, no 1 (2003), pp. 1-66
    The first decade of transition witnessed rapid and tumultuous financial sector development.Although, few transition economies have reached the point where institutions and markets fulfill all the functions of market based financial intermediation, progress has been much more rapid than had been anticipated.In many countries, active market-oriented financial institutions function where there was only a state planning mechanism a decade ago. Initial experiences showed that bank privatization programs often failed to achieve independence from government control and from undesirable weak clients.It is now widely accepted that the participation of foreign strategic investors in banking is an effective way of meeting these goals Capital market development is complicated by the need to support the development of institutional infrastructure and regulatory mechanisms while at the same time avoid interfering in the markets.In many instances policy makers expected immature markets and institutions to accomplish unattainable goals.Equity markets cannot be effectively support mass privatization programs.There are still many missing pieces in virtually all of the transition country capital markets. Key words: capital markets, financial sector, privatization, transition economies
  • Funke, Michael; Paetz, Michael (2012)
    BOFIT Discussion Papers 30/2012
    This paper evaluates various financial system reform initiatives and proposals in China in a DSGE modelling setting. The key reform steps analysed include phasing out benchmark interest rates, deepening the direct finance market, reducing government's quantity-based intervention on financial institutions. Our counterfactual model simulation results suggest that the reforms will be beneficial only, if Chinese monetary policy continues to rely on quantity-based interventions on financial institutions or tightens the interest rate rule. Keywords: DSGE model, financial sector reform, monetary policy, China. JEL classification: E42, E52, E58.
  • Popova, Tatiana (1998)
    The article provides an overall review of different aspects of financial-industrial groups (FIGs) in Russia.The review first explores the developments during the Russian economic reform that lead to the emergence of FIGs, highlights the legal basis and actual reasons for creating them, and gives an assessment of various elements of the state's policy to promote FIGs.The article further provides aggregate information on and a full register of FIGs created along the official path, and characterises some of the large de facto FIGs that were formed outside official policies and procedures.A judgement to focus the state's FIG policy is also given. Keywords: financial-industrial groups, FIGs, Russian banks, Russian industry, restructuring, oligarchs
  • Sutela, Pekka (1995)
    Bank of Finland. Bulletin 69 ; 2 ; February
  • Solanko, Laura (2001)
    BOFIT Discussion Papers 4/2001
    The paper analyses fiscal competition for mobile capital between identical regions in a transition country.A framework similar to Keen-Marchand (1997) is used to analyse welfare effects of regional competition.It is shown that in very early transition when the share of the old sector is overwhelming, consumers in a transition economy may be better off in a competitive equilibrium.The decision-makers, however, would prefer to coordinate their fiscal policies.
  • Pirttilä, Jukka (2000)
    BOFIT Discussion Papers 5/2000
    Published in Economics of Transition vol 9, no 1 (2001), pp. 29-52
    This paper makes an empirical examination of the relationship between fiscal balance and structural reforms using panel data from 25 transition economies The results indicate that price liberalisation has a positive impact on fiscal performance, while privatisation and restructuring, via unemployment, affect the fiscal balance negatively.These findings are somewhat in contrast with earlier empirical work and theoretical transition economics that maintain fiscal pressures are most severe in fast-reforming countries.The analysis further suggests that countries with better fiscal positions may have benefited from favourable initial conditions.
  • Pautola, Niina (1997)
    In market economies we can clearly make a distinction between the area of public finance and the area of private finance.In the centrally planned economies the distinction between private and public finance did not actually exist, because all economic activities as well as all finance were public.Given that, one can argue that transition from a centrally-planned to a market economy includes a radical fiscal restructuring. In principle, fiscal policy in transition economies was aimed at promoting economic recovery and creating favourable conditions for economic operators while maintaining reasonable social security. The fiscal stability was seen as an important signal of the government's commitment to economic stabilization.This, in turn, would increase public confidence in government.After the brake-up of the Soviet Union, most of the successor states experienced large fiscal deficits.Compared to other countries of the FSU, the Baltic states were able to maintain rather moderate deficits.One explanation for this can be that the initial fiscal position in all three Baltic states was better than in Russia and the transition economies in central Europe, and partly because of the early budget reforms in 1990-91.The Baltic countries practised tight fiscal policies right from the start of their independence.Another explanation for the Baltics' better success in maintaining fiscal stability can be explained by the fact that during the old Soviet system, the Baltic countries, especially Latvia and Lithuania, contributed large net transfers to the Soviet Union's budget.Once the Soviet Union collapsed, these transfers were abolished and the Baltic countries's financial balances improved significantly.The initial surplus in the fiscal accounts and better revenue performance made it easier to implement strict cash rationing as a means for expenditure control.Tight cas rationing has been an effective way to cut spending.Moreover, an additional factor explaining the success in expenditure policies has been the development of social security benefits.The shares of these transfers have remained fairly stable in all three Baltic states. Finally, it seems that Baltic governments have also been quite successful in reducing subsidies to very low levels.Despite the success, all three Baltic states have had trouble collecting budget revenues.Tax administration as well as control and payment mechanisms are still underdeveloped.In addition, due to a fact that many new private firms were not captured in the tax net, both taxes on wages and salaries, and VAT and other indirect taxes, may not have been fully collected from them.Budget revenues have further been negatively affected due to increase in tax arrears and falling profitability in state enterprises. Although the Baltic the Baltic countries managed to keep their fiscal deficits at quite low levels, deficits still emerged and therefore financing for these deficits had to be found.In respect of domestic financing, the government deficit has been mainly financed in the form of government bonds.The level of foreign financing, however, has been low due to a limited access to foreign capital markets. The future challange for economic policy in the Baltic countries is to ensure the availability of resources necessary to maintain growth, In this respect, fiscal policy should encourage savings, because they form the base for financing the high levels of investment required for sustained economic growth.One of the future challanges in all Baltic countries is the collecting of timely accurate, and accessible fiscal data that are consistent with the international standard of government finance statistics methodology.Also, we cannot ignore that social safety nets are under severe strain as a result of weak financial and administrative capacity.Further efforcts will focus also on tax policy; on improving the effectiveness of taxes by further broad
  • Hrncir, Miroslav (1992)
  • Suomen Pankki; Bank of Finland; Siirtymätalouksien tutkimuslaitos (BOFIT); Institute for Economies in Transition (BOFIT) (1999)
    Suomen Pankki. Idäntalouksien katsauksia 1/1999