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Methodological Issues of the Meso-level Analysis in Economics

Methodological Issues of the Meso-level Analysis in Economics

Journal of Institutional Studies, , Vol. 9 (no. 3),

The growth of attention to the meso level analysis in economics, which intensified in the 21st century, is associated with a number of factors. In this paper we draw attention to the following. First, the dissatisfaction with the traditional micro-macro dichotomy, which does not take into account the growing complexity of the economy and is, therefore, insufficient to understand ongoing economic processes and phenomena, including the causes of recurrent and increasing global crises. Second, the dissemination in the scientific discourse of the ideas of Synergetics and the evolutionary-synergetic paradigm of analysis of (socio) economic systems. With this approach, the dynamic structures of the meso level, which ensure interconnected development of the economy, are at the centre of consideration. The methodological differences between approaches to the meso level analysis, characteristics of Heterodox Economics, and Neoclassical Economics based on microfoundations, are shown. The essence of the heterodox approach presented in the paper is that the meso level is viewed as the result of self-organisation of (socio) economic systems in certain material conditions. The meso level of the economy is formed by the stable materially conditioned structures of interrelations and the rules for the joint functioning of the constituent parts (socio-economic system) that ensure the reproduction and stable dynamics of the development of the entire system. Through the prism of the declared methodology, a retrospective analysis of known concepts, primarily the model of Wasiliy Leontief, was carried out. It is shown that the principles of meso level analysis in economics were used long before the term "Mesoeconomics" was introduced into the scientific literature. A methodological analysis of modern Russian concepts is presented – the theory of the "shifting mode of economic reproduction" (V. I. Maevsky) and the "Institutional matrices theory, or X-Y theory" (S. G. Kirdina-Chandler), which investigate the mesolevel of (socio) economic systems. Particular attention is paid to obtaining new results which could not be obtained within the framework of only micro or macro level analysis.

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Mesoeconomic Theory in English-Scientific Literature

Mesoeconomic Theory in English-Scientific Literature

Journal of Institutional Studies, , Vol. 9 (no. 3),

The mainstream neoclassical economic theory assumes a binary model of levels of the economic hierarchy: macro and microeconomic levels. However, the idea of distinguishing the intermediate level of the economic hierarchy, the mesolevel, understood as a certain space for the transition of rules of interaction between individual economic individuals to the formation of full-fledged economic institutions and as an "intermediate link between individual actors and organizations at the micro level and systems of social and transsocial actors at the macrolevel" (Scott, 2008, p. 191). Despite a relatively long-standing origin, mesoeconomic theory has not yet been widely recognized in the scientific economic environment, but it has its supporters. Representatives of economic doctrines readily turn to the mesolevel of research, among them, first of all, are the supporters of evolutionary and institutional economic theories. In this paper, we aimed to analyze the main English language work on mesoeconomic research, and also show the key directions applying in mesoeconomic theory in economic research, the main ones of which seem to be institutional and evolutionary economic theories, since it is the mesolevel that can become a necessary object of research for supporters of both economic theories. Exactly for these groups of economists mesolevel is increasingly becoming a necessary study object. Within the framework of the proposed article, we will give a brief analysis of theoretical papers devoted to mesoeconomic research.

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Mesolevel as Object of Research in the Scientific Economic Literature of Contemporary Russia

Mesolevel as Object of Research in the Scientific Economic Literature of Contemporary Russia

Journal of Institutional Studies, , Vol. 9 (no. 3),

The idea of distinguishing the meso-level of economic analysis, filling the gap between macro and micro levels, is by no means new. It has not found a proper recognition and development in the work of representatives of the economic mainstream, but, on the contrary, steadily attracts the attention of the supporters of the heterodox directions of economic science. In this article, we propose a retrospective analysis of the development of the meso-level idea of economic analysis done by Russian economists. Three main directions of the development of the theory of mesoeconomic research are singled out: 1) a systematic approach: understanding the meso-level as a process of intra-industry interactions between economic agents with the goal of harmonizing the economic system; 2) Regional-spatial approach; 3) Theoretical approach of methodological institutionalism, developed within the framework of interdisciplinary intersections of economics and sociology. It is noted that the selected directions do not contradict and, on the contrary, complement each other. The development of the theory of mesoeconomics in the paradigm of the Kleiner-formula, which equates the object of mesoeconomics research with the space of formation of institutions and the institutions themselves, opens broad prospects for the development of the meso-level of economic analysis within the framework of institutional research. The practical need to separate the meso-level as a separate hierarchical stage of the economic structure, traditionally consisting of macro- and microlevels, is explained both by the need to expand the methodological tools of economic science and practical necessity, since it is assumed that meso-level is the space for the formation and consolidation of innovative solutions needed to ensure Growth.

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Economic-Mathematical Models for Studying of Mesolevel of Economy

Economic-Mathematical Models for Studying of Mesolevel of Economy

Journal of Institutional Studies, , Vol. 9 (no. 3),

The review of a number of the mathematical models applied to the description and analysis of mesolevel of economy is presented in article. The criteria for assigning models to a class of meso-level models that distinguish them from purely microeconomic or macroeconomic models are proposed. Examples of the use of mathematical models in the literature on mesoeconomics are given. The some classical models like input–output model of Leontief, or, for example, game theory, and rather new models using a mathematical apparatus of systems of nonlinear mappings or the differential equations, diverse simulation models, can be considered as models of mesolevel. Just as development of nonlinear physics has led to a possibility of the description of multi-scale self-organizing structures, the mesolarge-scale level of economy understood as set of the subsystems evolving, interacting among themselves, competing and cooperating generating the emergent phenomena like the increasing return, the hyperbolic growth or self-organized criticality can be appropriate to describe by means of models of econophysics and use of the principles of synergetrics. Also discussed are the prospects for the development of meso-level models and the problem of the conventionality of separating the levels of the economy, due, for example, to signs of scale invariance in some socio-economic systems.

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Moral Hazard, Adverse Selection and the Optimal Consumption-Leisure Choice under Equilibrium Price Dispersion

Moral Hazard, Adverse Selection and the Optimal Consumption-Leisure Choice under Equilibrium Price Dispersion

Journal of Institutional Studies, , Vol. 9 (no. 3),

The analysis of the optimal consumption-leisure choice under equilibrium price dispersion discovers the methodological difference between problems of moral hazard and adverse selection. While the phenomenon of moral hazard represents the individual behavioral reaction on the marginal rate of substitution of leisure for consumption proposed by the insurance policy, the adverse selection can take place on any imperfect market under equilibrium price dispersion and it looks like a market phenomenon of a natural selection between consumers with different income and different propensity to search. The analysis of health insurance where the propensity to search takes the form of the propensity to seek healthcare demonstrates that moral hazard takes place when the insurance policy proposes a suboptimal consumption-leisure choice and the increase in consumption of medical services with the reduction of leisure time represents not an unlimited demand for “free goods” but the simple process of the consumption-leisure optimization. The path of consumerism with consumer-directed plans can solve partly the problem of moral hazard because in order to eliminate moral hazard this trend should come to the re-sale of medical services under health vouchers like it takes place in the life settlement.

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Imitation Modeling and Institutional Studies

Imitation Modeling and Institutional Studies

Journal of Institutional Studies, , Vol. 9 (no. 3),

This article discusses the use of imitation modeling in the conduct of institutional research. The institutional approach is based on the observation of social behavior. To understand a social process means to determine the key rules that individuals use, undertaking social actions associated with this process or phenomenon. This does not mean that institutions determine behavioral reactions, although there are a number of social situations where the majority of individuals follow the dominant rules. If the main laws of development of the institutional patterns are known, one can describe most of the social processes accurately. The author believes that the main difficulty with the analysis of institutional processes is their recursive nature: from the standards of behavior one may find the proposed actions of social agents who follow, obey or violate institutions, but the possibility of reconstructive analysis is not obvious. The author demonstrates how the institutional approach is applied to the analysis of social behavior. The article describes the basic principles and methodology of imitation modeling. Imitation modeling reveals the importance of institutions in structuring social transactions. The article concludes that in the long term institutional processes are not determined by initial conditions.

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Economic Sanctions as a Factor of Modernizing of Russian Defense Industry Complex

Economic Sanctions as a Factor of Modernizing of Russian Defense Industry Complex

Journal of Institutional Studies, , Vol. 9 (no. 3),

The article is devoted to the analysis of the defense-industrial complex (DIC) of Russia in the conditions of economic sanctions. And although the center was the oil and gas industry, as well as the banking sector, economic sanctions against Russia affected the DCI. They touched first of all on such large Russian defense concerns as air defense "Almaz- Antey", "Sirius", "Stankoinstroment", "Kalashnikov", "Tula Arms Factory", NGO "Oriental Complexes", as well as "Dobrolyte". The prohibition of debt financing has affected such major enterprises of the defense industry as "Uralvagonzavod", "Oboronprom", "United Aircraft Corporation". The article shows, in general, the favorable impact of sanctions on the industry. At the end of 2016, Russia took the second place in world arms exports with a share of 23%, the US became the leader – their share was 33%. But the structure of the share capital in the defense industry companies is completely different if we compare these two countries: in the US, private companies dominate the market, in Russia – the largest enterprises are owned by the state. In the course of the analysis, it turned out that Russian defense industry enterprises are unprofitable or unprofitable, they do not have stability in financial performance, since they are highly dependent on government spending. To improve the current situation in this sector, it is advisable for the state to modernize the military-industrial complex companies in order to enhance the role of market mechanisms that will stimulate R & D, as under modern conditions of competition in any market, innovations represent an exclusive advantage for enterprise prosperity.

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Beyond «Bell Jar»: Innovative Entrepreneurship in «Resource-type» Regions of Russia

Beyond «Bell Jar»: Innovative Entrepreneurship in «Resource-type» Regions of Russia

Journal of Institutional Studies, , Vol. 9 (no. 3),

Goals and strategies characteristics of innovative entrepreneurs’ behavior of Kemerovo Region and Krasnoyarsk Region as potential subjects of modernization of resource-type regions’ economies are highlighted in the paper. Proposed approach is based on analysis of the relationship between specifics of the institu-tional environment of the Russian economy and types of entrepreneurs. Institution-al environment of the domestic economy is characterized by three interrelated basic parameters: political-bureaucratic market and mixed regime of property rights, enclave dual economy and regionalization. Formed institutional system modifies significantly entrepreneurs’ target objectives as well as the structure of resources that are crucial for doing business and generates a variety of their types. Using matrix classification of domestic entrepreneurs built on the basis of two criteria, i.e. entrepreneurs’ prevailing motivation and degree of individual political resource using, is proposed and validated in the paper. The validity of the developed matrix classification was inductively tested on the sociological research materials of developmental institutions residents in the compared resource-type regions, i.e. Kuzbass Technopark and Krasnoyarsk Regional Innovative-Technological Busi-ness Incubator. They were chosen as a subject of research as potential actors of regions’ economy modernization operating outside of the privileged resource sec-tor "bell jar". The processing of the sociological research results was carried out using nonparametric criteria that allow working with small samples. The fulfilled analysis showed that innovative entrepreneurs’ activities follow the logic of enclave dual economy without creating any conditions for resource-type regions transition to integrated economy development path.

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Institutional Aspects of integration of Russian Empire in XIX century

Institutional Aspects of integration of Russian Empire in XIX century

Journal of Institutional Studies, , Vol. 9 (no. 3),

The current situation in the world is characterized by the fact that there is another wave of changes to state borders, almost like after the second world war. Among the transforming States no classical empires, but the experience of building a large state formations can be used for understanding what needs to be done to preserve the integrity of States. This article addresses the question of institutional conditions of integration of economic space in the Russia of the XIX century. If we understand economy as "an institutionalized process" movement of material goods and transactions that link economic acts in the sphere of exchange makes this process stability and integrates it into the system companies. The authors considered promising idea Polanyi's three forms of integration or sharing that reproduce the economy as a whole, for the conducting institutional analysis of economy of the Russian Empire of the XIX century. We are talking about market exchange, redistribution (redistribution) and of reciprocity (reciprocity, gift exchange). In this aspect, the Russian economy has not yet considered in the economic literature. The main method used institutional analysis and the historical method of research. The materials contained in the work, can be used to consider contemporary problems of integration of heterogeneous economic space. Found that to ensure the system coherence of the society and co-storage state, it is necessary to implement long-term goals in the form of Large projects. The authors consider such projects in the symbolic context of maintaining the legitimacy of power and, in purely economic aspect.

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The Merging of the Higher Educational Institutions: Institutional and Organizational Change

The Merging of the Higher Educational Institutions: Institutional and Organizational Change

Journal of Institutional Studies, , Vol. 9 (no. 3),

Higher education reforms in Russia had been initiated in response to the challenge of time, such as new technologies development, optimization of government expenditures, commercialization of higher education and its “mass” character. Currently implemented reforms rely upon the ideas of neo-liberal thinking, which is operationalized in the methods of regulation within the New Public Management approach. Institutional and organizational change in the higher education are the subject of research in Neo-institutional economics and Original Institutional economics. This paper deals primarily with the Original Institutionalist approach, with its focus on the institutional context of reforms: embedded working rules and social values, corporate culture and organizational specificities. For the recent decades, many Western countries have implemented, and are implementing nowadays, higher education reforms. Related change not only affects proportions of public and private expenditures on higher education, universities’ funding sources, but issues of academic freedom, social value of higher education and its role in the modern society as well. In terms of direction, higher education in Russia is convergent with the world-wide trends: integration into the global market of educational services and rethinking the role of the university as a business organization. However the paradox occurs that performance of the university under the ideas of New Public Management implies market or quasi-market environment. This environment should be much about decentralization of administrative hierarchies and growing autonomy of the universities. But in reality these processes are much about reduced academic freedom and tightened control over the universities’ performance through a system of the objectives and targets.

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Comparative Economics as a Science and Educational Discipline: To the Outlook of "Comparative Economics"

Comparative Economics as a Science and Educational Discipline: To the Outlook of "Comparative Economics"

Journal of Institutional Studies, , Vol. 9 (no. 3),

Comparative economics, a young interdisciplinary science, which proper formation belongs to the twentieth century only, has been recently attracting more attention of the scientific community. This quite predictable interest is based on the very subject of the comparative economics which is socioeconomic systems in the mankind history. Researchers want to know what factors make systems come into being, transform, achieve prosperity, stop to develop; they need to understand how systems are functioning and which of their institutions should be attributed to as being fundamental – difficult or not transformed at all, and which of them are not so stable and therefore can be easily changed. This knowledge is crucially needed to elaborate an appropriate economic policy in order to meet national interests and cope with possible crises. Attention to the science is also based on its methodological possibilities: comparative analysis can provide complete and compact socio-economic panorama of mankind evolution versus traditional historical studies. This possible-to-embrace picture of global human history viewed as a set of different economic systems might be a good ground to conclude which of them possesses such attractive features as capacity for development, flexibility, readiness for self-improvement, ability to achieve and maintain reasonable socio-economic balance under negative internal and external influence, openness to interaction with other peoples and states, i.e. what system can provide the best sufficient infrastructure for growth and development focusing on ensuring a high standard of living for the people. Comparative analysis allows to predict, to some extent, the further evolution of economic systems, and chose the most attractive one as a desirable benchmark for national development. Thus, comparative economics is both of academic and practical value for society. Professor R. M. Nureev in his fundamental work "Comparative Economics (Comparative Analysis of Economic Systems)". Financial University. M.: Knorus, 2017) explores socio-economic systems as a subject of comparative economics, discusses methodology of the science, its advantages and limitations, challenges it faces, ideas argued by the most popular scholars; all these questions are discussed in this review.

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