nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2021‒08‒09
six papers chosen by

  1. Freelance platform work in the Russian Federation 2009-2019 By Shevchuk, Andrey.; Strebkov, Denis.
  2. Spillovers among Energy Commodities and the Russian Stock Market By Costola, Michele; Lorusso, Marco
  3. Money Creation in Russia: Does the Money Multiplier Exist? By Vadim O. Grishchenko; Alexander Mihailov; Vasily N. Tkachev
  4. Increasing Block Rate Electricity Pricing and Propensity to Purchase Electric Appliances: Evidence from a Natural Experiment By Salim Turdaliev
  5. Transition finance: Investigating the state of play: A stocktake of emerging approaches and financial instruments By Aayush Tandon
  6. Long-term Consequences of Civil War in Tajikistan: Schooling and International Migration Outcomes By Satoshi Shimizutani; Eiji Yamada

  1. By: Shevchuk, Andrey.; Strebkov, Denis.
    Abstract: This paper traces the development of freelance platform work in the Russian Federation based on unique data from four online surveys conducted over the period 2009 and 2019 via the leading platform for creative and knowledge- based work and analyses the working conditions and well-being of the workers.
    Date: 2021
  2. By: Costola, Michele; Lorusso, Marco
    Abstract: We examine the connectedness in the energy commodities sector and the Russian stock market over the period 2005-2020 using the variance decomposition approach. Our analysis identifies the booms and busts in the correspondence of political and war episodes that are related to spillover effects in the Russian economy, as well as the energy commodities markets. Our findings show that the Russian Oil & Gas and Metals & Mining sectors are net shock contributors of crude oil and have the highest spillovers to other Russian sectors. Furthermore, we disentangle the sources of spillovers that originated from the financial and energy commodity markets and find that a positive change in the energy commodity volatility spillover is associated with an increase in Russian geopolitical uncertainty. Finally, we show that the spread of COVID-19 increases the stock market volatility spillover, whereas it lowers the energy commodity volatility spillover.
    Keywords: Spillover Effects, Russian Stock Market, Russian Sectoral Indices, Commodity Markets, International Financial Markets
    JEL: C3 C58 E44 G1
    Date: 2021–07–31
  3. By: Vadim O. Grishchenko (Research and Forecasting Department, Bank of Russia); Alexander Mihailov (Department of Economics, University of Reading); Vasily N. Tkachev (International Finance Department, Moscow State University of International Relations (MGIMO- University))
    Abstract: For decades, the monetary economics literature has considered multiple deposit expansion via the money multiplier logic as empirically corroborated. However, the developments witnessed in advanced economies since the Global Financial Crisis challenged this settled view, and central banks as well as the Bank for International Settlements were among the first to openly reconsider it. In this paper, we revisit the issue empirically, but in a way aligned with a 'narrative' context of the evolving institutional frameworks for banking activities and monetary policy that profoundly and ultimately shape it out. Using a vector autoregression model estimated on Russian monthly data over two subsamples, 2005-2012 and 2012-2019, we find robust evidence that, while multiple deposit expansion may have existed in underdeveloped financial systems in the past, where the volume of lending was limited by the supply of bank reserves, nowadays lending is constrained mainly by the demand for credit. The key explanations we propose are: the rapid rise of money markets in the 20th- 21st centuries, the unlimited access to central bank liquidity provision facilities, and the evolution of bank management from the 'golden rule' of banking, where liquidity gaps aim at zero, to Asset and Liability Management, where banks flexibly manage liquidity gaps. Our results robustly show that the influence on real money balances of money supply factors, such as bank reserve requirements and the real monetary base, has become statistically insignificant over the recent decade in Russia, while that of money demand factors, such as the nominal interest rate, has remained significant and negative, which is consistent with the economic intuition we have suggested.
    Keywords: multiple deposit expansion, money multiplier, supply of bank reserves, demand for credit, evolution of bank management, monetary policy, Russia
    JEL: E41 E42 E44 E51 E58 G21
    Date: 2021–08–03
  4. By: Salim Turdaliev (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: This paper provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electric appliances. I use variation from a natural experiment in Russia that introduced IBR pricing for residential electricity in a number of experimental regions in 2013. The study employs household-level panel data which records, among others, whether the household has purchased any major electric appliances during the last 3 months. Using difference-in-differences specification I show that in the regions with IBR pricing the purchase of major electric appliances has increased by more than 25 percent (2 percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behavior of households.
    Keywords: appliances, increasing-block-rate tariff, electricity prices, energy efficiency gap
    JEL: Q3 Q4 D1 D9
    Date: 2021–07
  5. By: Aayush Tandon
    Abstract: With only a decade left to reduce emissions drastically, the scale, pace and extent of global transformation needed is truly demanding. Long-term emission goals and the nature of the low-emission transition in each country will be a function of its unique socio-economic priorities, capabilities, resource endowment, vision for post 2050 economic structure, and social and political acceptability of what constitutes a just transition. As we enter the “decade for delivery”, a whole of economy approach is needed to realise the low-emission transition. This includes focusing not only on upscaling zero and near-zero emitting technologies and businesses but also supporting, to the extent possible, the progressive lowering of emissions in high emitting and hard to abate sectors. In this context, “transition finance” is gaining traction among governments and market participants. To identify the core features of transition finance, this paper reviews 12 transition relevant taxonomies, guidance and principles by public (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private actors (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS), as well as 39 transition relevant financial instruments (vanilla transition bonds, key performance indicator-linked fixed income securities). This paper does not aim to define transition finance, but rather to review emerging approaches and instruments to highlight commonalities, divergences as well as issues to consider for coherent market development and progress towards global environmental objectives. Based on the review, this paper puts forth two preliminary views. First, that the essence of transition finance is triggering entity-wide change to reduce exposure to transition risk; second, that transition finance may be better understood as capital market instruments with a set of core functions/attributes rather than a specific format or label.
    Keywords: finance, low-carbon transition, sustainable debt, taxonomy, transition risk
    JEL: D5 E4 Q01
    Date: 2021–08–05
  6. By: Satoshi Shimizutani (JICA Ogata Sadako Research Institute for Peace and Development); Eiji Yamada (JICA Ogata Sadako Research Institute for Peace and Development)
    Abstract: This study utilizes variations in exposure to the armed conflict to examine the long-term consequences of civil war in Tajikistan on a variety of outcomes twenty years after the end of the civil war. We confirm a negative and significant effect on completing basic education for girls exposed to the war during their school ages while other girls were able to attain higher education levels than previously. Moreover, we see adverse effects on employment status for males exposed to armed conflicts in their primary school ages and long-term effects in international migration status for those males.
    Keywords: Tajikistan, Civil war, Long-term consequences, Schooling, International migration
    JEL: D1 I2 O1
    Date: 2021–07–14

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