A macroeconomic model based on search-theoretical foundations is built to show that in an economy with structural deficiencies of the Russian Virtual Economy, money substitutes appear as a result of optimizing behavior of agents. The result obtains for an economy, where there are large natural...

The Russian economy has evolved into a hybrid form, a partially monetized quasi-market system that has been called the virtual economy. In the virtual economy, barter and non-monetary transactions play a key role in transferring value from productive activities to the natural monopolies and...

This paper provides a general framework for pricing of real options for wide classes of payoff streams that are functions of Levy processes. As applications, we calculate the values of sequences of embedded options, (which we call Russian dolls), and study two models of expansion of a monopoly....

This paper provides a general framework for pricing of real options for wide classes of payoff streams that are functions of Levy processes. As applications, we calculate the values of sequences of embedded options, (which we call Russian dolls), and study two models of expansion of a monopoly....

For economies in transition, the issues of property rights protection provided by the state and implications for economic performance are very important. The paper develops an endogenous growth model with incomplete capital markets and the level of public protection of property rights determined...

This paper employs the Russian Longitudinal Monitoring Survey, a nationwide panel, to inquire into the magnitude, determinants, and consequences of occupational mobility in Russia from 1985 to 1998. We show that the restructuring process increases the rate of occupational reallocation....

The author analyzes the price dynamics of shares listed in the Russian Trading System (RTS). Preferences for speculative versus strategic investments in the Russian capital market are studied by dividing the risk associated with each share into a general component, which depends on economic...

We analyse the phenomenon of financial pyramids (Ponzi games) that were surprisingly widespread in transitional economies in the mid-1990s. Financial pyramids are modelled as a stochastic game under incomplete information between a Ponzi firm — an intended builder of the pyramid — and a...

This paper concentrates on the theoretical analysis of local housing market behavior in a short-term period such that the set of market agents, the set of dwellings, and the agents' preferences are invariable within this period. The basic model presents the market as an economy of exchange with...

This paper investigates the well-known hypothesis that the higher the rate of inflation, the higher is price uncertainty. Regressions with heteroskedastic errors are applied in order to model inflationary uncertainty in the Russian economy and to study its possible link with inflation. Using...