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Russian Journal of Economics and Law

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Vol 12, No 2 (2018)

THEORY OF ECONOMICS

191-203 288
Abstract
Objective: to determine the ways for the economic theory to come out of systemic crisis, which is determined by its empirical nature peculiar to a proto-science with its well-known structural constraints. Methods: systemic approach, method of analogy, model-based approach. Results: basing on the research of relations classes, the authors consider the possibilities of using the general methodological scientific tools. To achieve the set goals, the authors analyzed the scientific works demonstrating the crisis in modern economic science. The problem is the desire of researchers to either use tools and methods already developed in Economics, or to transfer methods from other subject areas. In both cases, the disadvantage is a significant amount of time spent on finding the optimal solution to the problem. The authors see the solution of the problem in the study of various spheres of science using a single methodology, based on the method of analogy and the property of systems isomorphism. In this case, it becomes possible to consider it not as a science in the usual sense, focused on the study of various categories of phenomena in a narrow subject area. It is shown that scientific knowledge as a system consists of elements and various connections between them, while the elements are equivalent in terms of these connections. Therefore, by changing the system elements for their prototypes, it is possible to obtain a description of the dependencies between the new elements. It is emphasized that to study the multilateral relations it is necessary to build integral models enabling to detect the obvious discrepancy between the structure of the object and the functional depicting of the dependencies of its properties. Scientific novelty: the process of improving the economic theory acquires an interdisciplinary nature at the intersection of economic science, methodology and general systemic disciplines. At the same time, economic science acquires a new field of research (it studies various classes of relations), a new set of knowledge and methodology. It should be noted that in such aspect the problem stated in the work is currently insufficiently studied and requires further research. The results of the research extend the idea of possible directions of improving the economic theory. The work is of problematic, largely innovative character. Practical significance: the work may be of interest to specialists in the field of Economics and related disciplines.

ECONOMICS AND NATIONAL ECONOMY MANAGEMENT

204-220 301
Abstract
Objective: to consider the features of centralized and decentralized monetary systems development and to identify the necessary conditions for the transition of the national economy to decentralized network platforms operating within the distributed ledger technology, public and private digital currencies.Methods: a systemic approach to the cognition of economic phenomena, enabling to study them in dynamic development, taking into account the influence of various environmental factors. The systemic approach determined the choice of specific research methods: empirical, historical, logical, comparative and statistical.Results: the article considers different approaches to the organization of money issue. It is shown that the era of the centralized monetary system, based on the issue of Central banks, has come to its end. The Central bank is the main link of the centralized monetary system, while in the context of 2008 financial crisis the functions of the Central Bank as the lender of last resort were significantly expanded by changing the paradigm of the monetary mechanism. It is established that the new monetary mechanism has become the main channel of money supply in the economy, while the main factors of the new monetary supply formation are the reserve money of Central banks, new Basel standards and high requirements for borrowers. This monetary policy and the centralization of the financial market have led to a distortion of the market pricing mechanism in the monetary market and to the disruption of competition in the financial intermediation market. The author analyzes the new trends in the emergence of a decentralized monetary system in the world economy based on public and private digital currencies issued by users of distribution computer networks. The article shows the mechanism and technology of crypto currency emission, which implies the use of public or private blockchain without any participation of the Central bank and other financial intermediation institutions.Scientific novelty: for the first time, the article shows that the era of centralized monetary system based on monopoly issue by Central banks, has come to its logical end; a decentralized monetary system is emerging in the world economy today, based on public and private issue of digital currency; in the course of legalization, growth of scalability, confidentiality, validation and tokenization of real assets, the crypto currencies will become a liquid and less volatile monetary asset.Practical significance: the main provisions and conclusions of the article can be used to clarify the target mandates, tools, channels and mechanisms of monetary policy of the Bank of Russia, capable of launching a decentralized crypto currency market, acting as a built-in stabilizer of financial sustainability and elastic regulation of trade and financial imbalances within the country and between countries.
221-240 252
Abstract
Objective: to elaborate proposals and demonstrate ways for probable transformation of an investment project implemented in the Low-Angara region into a federal target program from the viewpoint of interaction of the territory economy and the environment development.Methods: such general scientific methods were applied as systemic approach, logical and comparative analysis, economic-mathematical modeling.Results: Low-Angara region in Krasnoyarsk krai is one of the regions of new economic development in the modern Russia. It is attractive for new large-scale investments, including a unique resource base, the availability of the necessary infrastructure for industry, which determines the necessity for strategic plans in the sphere of its further development. The article analyzes the results of implementation of the investment project “Complex development of the Low-Angara region”. It is determined that the projects implemented in the region are characterized by a number of problems, such as the orientation of the territory towards raw materials production, lack of the projects’ correlation with the capabilities of the region, lack of the accounting of environmental factors. To solve the revealed problems, it is proposed to implement a special regional target program of the complex development of the region. The advantages of regional programs are shown for predicting the environmental consequences of the social-economic development of the region. The tools are presented for environmental-economic analysis of the consequences economic decisions in the region. Based on the elaborated model, the influence of various economic solutions on the environment is shown, which allowed formulating recommendations for the territory development taking the environmental factor into account.Scientific novelty: the possibilities and limitations of the particular region are analyzed from the viewpoint of environmental imperative (by the example of Low-Angara region in Krasnoyarsk krai), the results and prospects are estimated of a large-scale investment project implementation on its territory; recommendations are given concerning the prospects of the Low-Angara region development taking the environmental requirements into account.Practical significance: the research results can be used as a methodological basis and analytical materials for substantiating the economic decisions related to influencing the environment within the territories of intense economic development.
241-255 294
Abstract
Objective: to perform a summarizing comparative analysis of the two works impugning the US dominance in econometric models with non-synchronous time series.Methods: comparative analysis of the research hypothesis, method of data preparation and research results.Results: many researches emphasize the US stock exchanges as the most influential in econometric models. At the same time, the results may be misleading during the application of time series from the markets of the different time zones. Classical econometric models during the application of the non-synchronous data are unable to take the problem of non-synchronous trade into account. Such a conclusion appeared in two research studies. Whether independently or not, B. Resnik and G. Shoesmith reproduced the research by R.A. Grigoryev, which demonstrated that the classical econometric models with autoregressive structure of variables strongly confirm the presence of causal links from the US stock exchange to any other stock exchange in the presence of non-synchronous data. While in reality these causal links can be explained only by the sequence of appearance of the stock exchange trading sessions during the universal day, or the fact that the US trading session’s time zones are most close to the end of the universal day.Scientific novelty: the works by R. Grigoryev and B. Resnik and G. Shoesmith have significant coincidences in the hypothesis, method of data preparation and the research results. The researches confirm the presence of regularity between the use of non-synchronous time series and the existence of effects from the lagged exogenous variables in classic econometric models. Practical significance: repeated confirmation of the pattern underlines the necessity to correctly account the non-synchronous time series within the equation specification or by applying a shift in the time series.
256-265 271
Abstract
Objective: to formulate the notion of mining, to define its essence, properties, types and features.Methods: dialectical approach to the cognition of social phenomena, enabling to analyze them in their historical development and functioning in the context of a set of objective and subjective factors, which determined the choice of the following research methods: formal-logical, comparative-legal, sociological.Results: it is substantiated that mining is a new complex economic-legal technology and, at the same time, a new type of human economic activity, which does not belong to entrepreneurial activities. Therefore, it is stated that mining should not be subject to taxation, it does not imply specialized state-legal regulation (licensing, control, etc.), cannot be regarded as illegal business activity in the absence of registration, and does not entail any other negative consequences. Scientific novelty: the definition of mining is viewed for the first time in the scientific literature, taking into account its two main components: informational and legal. In contrast to the definition of mining given in the draft Federal Law “On digital financial assets”, the reference to electricity consumption was removed, as there are other types of mining that are difficult to detect by a steadily high level of energy consumption in the system.Practical significance: the main provisions and conclusions of the article can be used in scientific, pedagogical and law-making activities in the consideration of issues related to the legal regulation of mining.
266-299 366
Abstract
Objective: based on the critical assessment of terms and structures related to the methodology of anti-crisis management, to propose a new approach to the concept and structure of the methodology of anti-crisis management and the methodology of anti-crisis management in macroeconomy.Methods: abstract-logical.Results: the article substantiates the topicality of studying the structure of anti-crisis management methodology under the obvious crisis in the Russian macroeconomy and, as a rule, inefficient anti-crisis measures taken by the state during the recent two decades. The research are analyzed, which were devoted to the study of notions related to the anti-crisis management methodology, and their main defects are revealed. The researches concerning the structure of anti-crisis management methodology are summarized. It was found that all these researches are not optimal from the standpoint of methodology structure. Based on the literature analysis, the article proposes the author’s interpretation of the notion of anti-crisis management methodology and the anti-crisis management methodology in macroeconomy. New structures for these two methodologies are proposed. The principles of state anti-crisis management in economy are formulated and proved. The main conditions of implementation of anti-crisis management methodology in Russian are classified and characterized, namely: strongly-, middle- and weakly inertial. All of them are illustrated by case studies.Scientific novelty: a new layout of of the methodology of anti-crisis management and the macroeconomy anti-crisis management methodology structure is formed. The subjects and goals are included into the new methodology; the subjects are selected are allocated as follows: the state and the agents closely related to it, the business community, the foreign agents, the society, and other subjects which possess many common properties with the above mentioned. In addition, all elements of the macroeconomy anti-crisis management methodology structure are specified; their essence is clarified; their key relationships are disclosured.Practical significance: the application of the proposed methodologies in practice will allow better implementation of anti-crisis management in macroeconomy than the application of well-known classical approaches, mainly focused on microeconomy.

CRIMINAL LAW AND CRIMINOLOGY

300-333 278
Abstract
Objective: to define and describe the boundaries, specifics of formation and content of anti-corruption procedural legislation of the Russian Federation subjects.Methods: the methodological basis of the study is dialectical materialism and general scientific methods of cognition based on it: analysis, synthesis, comparison, grouping and others, used in legal sciences.Results: the paper investigates the phenomenon of anti-corruption procedural legislation of the Russian Federation subjects as an inter-branch institution of modern Russian anti-corruption legislation. The article describes and explains the reasons for the adoption of regional laws governing the procedural issues of the state anti-corruption, namely, the federal legislator delegating the authority to adopt them and the requirements of law enforcement practice. The subject area of legal regulation of the regional anti-corruption procedural legislation is highlighted: a) submission of information about the property status of certain categories of officials and their families; b) verification of the submitted information; c) disclosure of information about the property status of certain categories of officials and their families; d) bringing to legal responsibility of officials for non-compliance with anti-corruption requirements, including dismissal from office due to loss of confidence. The authors propose their own scientific legal definition of the anti-corruption procedural legislation of the Russian Federation subjects as an inter-branch legal institution. Scientific novelty: for the first time in the Russian legal science it is declared about the presence of inter-branch institution of anti-corruption procedural legislation of the Russian Federation subjects; its existence is proved, its content is described and explained; the scientific category “anti-corruption procedural legislation of the Russian Federation subjects” is developed and proposed. Practical significance: the results of the study can be used to systematize and codify the federal and regional anti-corruption legislation, as well as to lay the theoretical foundations of anti-corruption procedural law. It is connected with the possibility to improve the regional legislation regulating the procedural issues of the state anti-corruption policy implementation.

TRANSLATED ARTICLES

334-384 283
Abstract
Objective: to consider the possibility of a property tax promoting allocative efficiency without losses to investment efficiency. Methods: dialectical approach to the cognition of social phenomena, enabling to analyze them in their historical development and functioning in the context of a set of objective and subjective factors, which determined the choice of the following research methods: formal-logical, comparative-legal, sociological.Results: the existing system of private property interferes with allocative efficiency by giving owners the power to hold out for excessive prices. The authors propose a remedy in the form of a tax on property, based on the value self-assessed by its owner at intervals, along with a requirement that the owner sell the property to any third party willing to pay a price equal to the self-assessed value. The tax rate would reflect a tradeoff between gains from allocative efficiency and losses to investment efficiency, likely in the range of 5 to 10 percent annually for most assets. The detailed design of this system is discussed from an economic and legal perspective. Scientific novelty: the author proposes a paradigm of new economy relying not on the private property institution, but on the partial property with Harberger taxation system. Practical significance: the authors view practical examples of Harberger taxation implementation for various property types and objects. It is shown that the global trends towards economy digitalization, in particular, the Internet of Things (IoT), the blockchains, the electronic auctions and geo-positioning of the property objects are the key technologies for practical implementation of Harberger taxation system.
385-412 731
Abstract
Objective: to consider the causes and conditions which have led to the breakdown of trust between diamond dealers and the industry arbitration system, to reveal the features of limitation of reputation-based exchange.Methods: dialectical approach to the cognition of social phenomena, enabling to analyze them in their historical development and functioning in the context of a set of objective and subjective factors, which determined the choice of the following research methods: formal-logical, comparative-legal, sociological.Results: the paper assesses recent changes in diamond industry. It is observed that growing distrust has eroded the industry’s foundations for reputation-based exchange, and the industry now exhibits growing uncooperative behavior. The breakdown of cooperation has even eroded trust in the industry’s system of private arbitration in the New York's DDC. The paper then identifies several economic forces that have reduced the economic gains from cooperation and, reciprocally, enhanced the economic attractiveness of untrustworthy behavior: changes in diamond production has increased wholesale prices, changes in Internet retail sales have decreased retail prices, and thus intermediary diamantaires suffer from reduced profits. Additionally, the emergence of Indian diamond business has intensified competition among diamond intermediaries, thus further reducing profit opportunities. Indian entry has been fueled, in part, by the availability of state-sponsored credit, and both overexpansion and incipient bankruptcies have resulted. The loss of trust and growing unreliability of reputation-based exchange has precipitated further industrial restructuring, with diamond firms integrating vertically to avoid the traditional supply chain from intermediaries. These changes, and the continued the attrition of trust, signal significant changes to the historic and iconic industry. Scientific novelty: for the first time, the paper substantiates the necessity to rethink what has become the prevailing under- standing of cooperation and dispute resolution in the diamond industry, and to reconceptualize the economics of the diamond chain. Consistent with transaction cost economics, the authors observed that trust-based relationships and vertical integration are substitutes for each other, and that vertical integration takes hold when trust breaks down.Practical significance: the main provisions and conclusions of the article can be used in scientific, pedagogical and law-enforcement activities in considering the issues related to legal regulation of diamond industry.

DISCUSSIONS

413-427 239
Abstract
Objective: to consider the defects of social-legal and criminological research at the Institute of State and Law of the Russian Academy of Sciences and, based on their analysis, to offer promising areas of scientific legal research for the effective lawmaking.Methods: dialectical approach to the cognition of social phenomena, enabling to analyze them in their historical development and functioning in the context of a set of objective and subjective factors, which determined the choice of the following research methods: formal-logical, comparative-legal, sociological.Results: the Institute of State and Law of the Russian Academy of Sciences should specialize in studying the existing trends and patterns of crime, forecasting and development of draft normative-legal acts to combat illegal mass activity. However, in reality, the scientific developments of the above-mentioned Institute are not always taken into account in law-making and law-enforcement activities. As a result, there are no accurate data on the actual level of crime and its particular types; the social and economic consequences of crime are not analyzed; an effective mechanism of struggle against crime is not developed; there are no data on the costs of combating crime and maintaining criminals at confinement institutions; no adequate forecast is presented of the possible development of crime due to intensive changes in the world and in the country. Scientific novelty: the conducted critical analysis of the history of the establishment and development of the Institute of State and Law of the Russian Academy of Sciences and its interaction with public authorities enabled to justify the need to create a full-fledged analytical center in the above-mentioned Institute to obtain systemic information on the legal and criminological situation in the Russian Federation.Practical significance: the main provisions and conclusions of the article can be used in scientific and pedagogical activities in the consideration of issues related to the definition of promising areas of scientific legal research.

INTERDISCIPLINARY ARTICLES

428-442 256
Abstract
Objective: to study the issues of ensuring the independence of business rights commissioners from the influence of regional power elites.Methods: the reliability of the study and the validity of the author’s arguments are provided by the use of both empirical and theoretical methods of cognition (description, analysis, synthesis, induction, deduction). In addition to general scientific methods, special legal research methods were used: formal-legal and comparative-legal.Results: based on the analysis of normative-legal legal acts of the Russian Federation subjects regulating the order of accounting for the business community opinion, the problem of independence of business rights commissioners is considered. The author presents in a systematic form the organizational and legal characteristics of the procedure of appointment to the position of a business rights commissioner in different regions of the country, assessing their actual significance in ensuring the accounting of the business community opinion. It is assumed that the procedure based on the following principles could fully account the business community opinion: 1) legislative establishment of the possibility of nominating candidates for the position of a business rights commissioner solely by business associations. Such an opportunity should be provided to all public organizations operating in the region, whose statutory objectives include promoting the creation of favorable conditions for entrepreneurship, and not only to the branches of all-Russian public associations; 2) normative stipulation of a maximally open and transparent procedure of public discussion of candidates for the position of a business rights commissioner. It is necessary to use more intensively the modern technologies allowing remote vote by SMS or through the official website of the region with automatic reflection of results. In addition to voting, an Internet forum should be created for open discussion of candidates with their participation, in which even online debates are possible; 3) legislative stipulation of the region head obligation to make the person who received the greatest support from the vote participants to be appointed a business rights commissioner. We believe that only under this condition the “legal nihilism” of the Russian entrepreneurs can be overcome, who now believe, not without reason, that nothing depends on their opinion. Scientific novelty: based on the research, the author offers an optimal model of legal regulation of the order of accounting of the business community opinion, which provides a real impact of business associations on the process of appointment of a business rights commissioner. Practical significance: the results and recommendations contained in the article can be used to further improve the legal regulation of the business rights commissioners institution, to search the ways to ensure their independence.


ISSN 2782-2923 (Print)