IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2015i26p179-186.html
   My bibliography  Save this article

Government Stimulus or Economic Incentives?

Author

Listed:
  • Kudrin, A.

    (Saint Petersburg State University, Saint Petersburg, Russia)

  • Gurvich, E.

    (Economic Expert Group, Moscow, Russia)

Abstract

The authors demonstrate that the recent performance of Russian economy is lagging far behind both targets set by the government and performance of the global economy. Arguments are suggested that possible effects of monetary and fiscal stimulus suggested by some economists most likely will turn to be negative in a medium run. The major macroeconomic and institutional impediments to growth are outlined and policies required to address these obstacles are indicated. The latter include measures to restore macro sustainability, to resolve structural problems, and improving public institutions. Institutional progress requires denationalization (not only in terms of ownership, but also in functional terms, as many mixed and private-owned banks and companies in fact serve as governments' agents), property rights protection, and alleviating excessive regulatory burden on business.

Suggested Citation

  • Kudrin, A. & Gurvich, E., 2015. "Government Stimulus or Economic Incentives?," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 179-186.
  • Handle: RePEc:nea:journl:y:2015:i:26:p:179-186
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2015-26-179-186r.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. J. Kornai & E. Maskin & G. Roland., 2004. "Understanding the Soft Budget Constraint," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 12.
    2. Jaejoon Woo & Manmohan S. Kumar, 2015. "Public Debt and Growth," Economica, London School of Economics and Political Science, vol. 82(328), pages 705-739, October.
    3. Bogetic, Zeljko & Olusi, Olasupo, 2013. "Drivers of firm-level productivity in Russia's manufacturing sector," Policy Research Working Paper Series 6572, The World Bank.
    4. A. Kudrin & E. Gurvich., 2014. "A New Growth Model for the Russian Economy," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 12.
    5. E. Gurvich & I. Prilepskiy., 2013. "How to Secure External Sustainability of the Russian Economy," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
    6. E. Gurvich., 2010. "Natural Rent in the Russian Oil and Gas Sector," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    7. Pier Carlo Padoan & Urban Sila & Paul van den Noord, 2012. "Avoiding debt traps: Fiscal consolidation, financial backstops and structural reforms," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 151-177.
    8. Polterovich, Victor & Popov, Vladimir, 2006. "Эволюционная Теория Экономической Политики: Часть I: Опыт Быстрого Развития [An Evolutionary Theory of Economic Policy: Part I: The Experience of Fast Development]," MPRA Paper 22168, University Library of Munich, Germany.
    9. E. Vakulenko & E. Gurvich, 2015. "Modeling the Mechanisms of Russian Labour Market," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    10. Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "The Effects of Privatization and Ownership in Transition Economies," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 699-728, September.
    11. Pier Carlo Padoan & Urban Sila & Paul van den Noord, 2012. "Avoiding Debt Traps: Financial Backstops and Structural Reforms," OECD Economics Department Working Papers 976, OECD Publishing.
    12. V. Polterovich & V. Popov., 2006. "An Evolutionary Theory of Economic Policy. Part I. The Experience of Fast Development," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    13. Tichá Michaela, 2012. "State or Private Ownership? A Survey of Empirical Studies," Review of Economic Perspectives, Sciendo, vol. 12(2), pages 120-144, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Buklemishev, O., 2016. "Overcoming Investment Pause in the Russian Economy," Journal of the New Economic Association, New Economic Association, vol. 29(1), pages 160-167.
    2. Stepanova, A. & Podukhovich, D., 2023. "CEO decision-making horizon and R&D investments. Evidence from Russia," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 85-118.
    3. Gurvich, Evsey, 2016. "Institutional constraints and economic development," Russian Journal of Economics, Elsevier, vol. 2(4), pages 349-374.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gurvich, Evsey, 2016. "Institutional constraints and economic development," Russian Journal of Economics, Elsevier, vol. 2(4), pages 349-374.
    2. Balázs Égert, 2015. "Public debt, economic growth and nonlinear effects: Myth or reality?," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 226-238.
    3. Yun Jung Kim & Jing Zhang, 2021. "The Relationship Between Debt and Output," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(1), pages 230-257, March.
    4. Balẳ Égert, 2015. "The 90% public debt threshold: the rise and fall of a stylized fact," Applied Economics, Taylor & Francis Journals, vol. 47(34-35), pages 3756-3770, July.
    5. Kudrin, Alexey & Gurvich, Evsey, 2015. "A new growth model for the Russian economy1," Russian Journal of Economics, Elsevier, vol. 1(1), pages 30-54.
    6. Blessy Augustine & O.P.C. Muhammed Rafi, 2021. "Public Debt - Economic Growth: Evidence of a Non-linear Relationship," BASE University Working Papers 11/2021, BASE University, Bengaluru, India.
    7. D'Andrea, Sara, 2022. "A Meta-Analysis on the Debt-Growth Relationship," MPRA Paper 114409, University Library of Munich, Germany.
    8. Ikonen, Pasi, 2017. "Financial depth, debt, and growth," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number e51, July.
    9. Adler, Gustavo & Lizarazo, Sandra, 2015. "Intertwined sovereign and bank solvencies in a simple model of self-fulfilling crisis," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 428-448.
    10. Ivo Arnold, 2021. "An Interest Stabilisation Mechanism to Unburden the ECB," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(5), pages 274-277, September.
    11. Beetsma, Roel & Mavromatis, Kostas, 2014. "An analysis of eurobonds," Journal of International Money and Finance, Elsevier, vol. 45(C), pages 91-111.
    12. Piotr Ciżkowicz & Grzegorz Parosa & Andrzej Rzońca, 2022. "Fiscal tensions and risk premium," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 833-896, August.
    13. Skrypnik, D., 2024. "Infrastructure and economic growth in the context of the evolutionary theory of economic policy," Journal of the New Economic Association, New Economic Association, vol. 62(1), pages 117-142.
    14. Polterovich, Victor, 2008. "Современное Состояние Теории Экономических Реформ [Modern Condition of the Theory of Economic Reforms]," MPRA Paper 22032, University Library of Munich, Germany.
    15. Ewa Aksman, 2017. "Do Poverty and Income Inequality Affect Public Debt?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 6, pages 79-93.
    16. Agnello, Luca & Sousa, Ricardo M., 2015. "Can re-regulation of the financial sector strike back public debt?," Economic Modelling, Elsevier, vol. 51(C), pages 159-171.
    17. Ugo Panizza & Andrea F. Presbitero, 2013. "Public Debt and Economic Growth in Advanced Economies: A Survey," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(II), pages 175-204, June.
    18. Castro, Gabriela & Félix, Ricardo M. & Júlio, Paulo & Maria, José R., 2015. "Unpleasant debt dynamics: Can fiscal consolidations raise debt ratios?," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 276-294.
    19. Mencinger, Jernej & Verbic, Miroslav & Aristovnik, Aleksander, 2015. "Revisiting the role of public debt in economic growth: The case of OECD countries," MPRA Paper 67704, University Library of Munich, Germany.
    20. Polterovich, V., 2014. "Industrial Policy: Recipes or Institutions?," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 190-195.

    More about this item

    Keywords

    Russian economy; long-term development; economic stimulus;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2015:i:26:p:179-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.