Central Economics and Mathematics Institute

About: Central Economics and Mathematics Institute is a facility organization based out in Moscow, Russia. It is known for research contribution in the topics: Population & Foreign-exchange reserves. The organization has 297 authors who have published 580 publications receiving 6449 citations. The organization is also known as: Federal State Institution of Science Central Economics and Mathematics Institute of the Russian Academy of Sciences.

Разрыв Между Югом и Западом По Уровню Экономического Развития Сокращается (Catching Up: Developing Countries in Pursuit of Economic Growth)

Abstract: Russian Abstract: В статье исследуется долговременная траектория роста развивающихся стран. До 16 века все страны находились примерно на одном уровне экономического развития, но затем страны, которые мы сегодня называем западными, стали расти быстрее остальных. К 1950г. США, наиболее развитая страна Запада, достигла ВВП на душу по ППС почти 5 раз выше, чем в среднем в мире. С 1950 г., однако, рост этого соотношения прекратился: Западная Европа и Япония подтянулись в послевоенный период к уровню США по подушевому доходу; Восточная и Южная Азия, а также некоторые страны в других регионах тоже стали сокращать этот разрыв. После почти пяти столетий роста разрыва в подушевых доходах Юга и Запада, мир, похоже, вступил в период выравнивания уровней развития. В статье анализируются факторы такой неравномерной динамики, сценарии на будущее и последствия для мирового экономического порядка. English Abstract: This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average. Since 1950 this ratio stabilized – not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and scenarios are considered.

The Influence of Machinery and Equipment Degradation on Their Depreciation

Abstract: The preparation of financial statements in accordance with IFRS involves the choice of such methods of depreciation for assets that are supposed to reflect most accurately the expected pattern of consumption of future economic benefits from the use of assets. However, in relation to machinery and equipment items this requirement is difficult to implement, since it is not clear how to understand and measure the economic benefits associated with such assets and the pattern of their consumption. In our opinion, the consumption of future economic benefits from the use of an asset is reflected in its fair value, and the depreciation of an asset over a period of time expresses a decrease in the fair value of the asset in that period. Having regard to this position, it is necessary to be be choosing such a depreciation method which affords the best correspondence between the carrying amount of assets and their fair values. We show that the often used linear depreciation method does not satisfy this requirement even for an asset that generates equal annual benefits from year to year. The article is devoted to the selection of the most suitable method of depreciation for machinery and equipment items. In our opinion, it is necessary to take into account the dynamics of their degradation processes (deterioration of operational characteristics). In this regard, we provide numerous data on a decrease in productivity and an increase in operating costs with age for various machinery and equipment categories. The analysis of such data allows us to offer a simple linear model of machine impair­ment/de­gradation, as well as a depreciation method based on it. This method turns out to resemble the sum of the years’ digits method and can be considered as a generalization of such a method. Its applicability to measuring the depreciation of real machinery and equipment items is confirmed by the results of economic and mathematical modeling and experimental estimates.

Stochastic optimality in the portfolio tracking problem involving investor’s temporal preferences

Abstract: We consider an optimal portfolio selection problem to track a riskless reference portfolio. Portfolio management strategies are compared taking into account the investor’s temporal preferences. We investigate stochastic optimality of the strategy that minimizes the expected long-run cost, deriving an asymptotical upper (almost sure) estimate for the difference between the values of the objective functional corresponding to the optimal strategy and for any admissible control.

Survival Probabilities in Compound Poisson Model with Negative Claims and Investments as Viscosity Solutions of Integro-Differential Equations

Abstract: This work relates to the problem of the identifying of some solutions to linear integro-differential equations as the probability of survival (non-ruin) in the corresponding collective risk models involving investments. The equations for the probability of non-ruin as a function of the initial reserve are generated by the infinitesimal operators of corresponding dynamic reserve processes. The direct derivation of such equations is usually accompanied by some significant difficulties, such as the need to prove a sufficient smoothness of the survival probability. We propose an approach that does not require a priori proof of the smoothness. It is based on previously proven facts for a certain class of insurance models with investments: firstly, under certain assumptions, the survival probability is at least a viscosity solution to the corresponding integro-differential equation, and secondly, any two viscosity solutions with coinciding boundary conditions are equivalent. We apply this approach, allowing us to justify rigorously the form of the survival probability, to the collective life insurance model with investments.

Comparative analysis of strategies of pricing and promotion of products and services on network values market

Abstract: The article studies conditions of dynamic pricing and marketing policy efficiency on network values market in circumstances of temporary supplier’s monopoly. The research method is economic-mathematic modeling of value cost dependence on the number of its consumers and demand for the value on price. By computer tests possibilities to use dynamic pricing for resolving three objectives are analyzed, they are maximization of net integral discounted profit of network value supplier; minimization of time necessary to reach the project repayment and minimization of time necessary to reach the maximum integral profit. The authors come to the conclusion about the importance of taking into account the peculiarities of network values markets for developing business marketing policy. They substantiate the expediency of using policy of network values differentiation (free provision of simple version of values and sale of extended version) in order to motivate net shaping and to speed up the achievement of project repayment. The economic-mathematic model of shaping network values market was put forward, which differs from existing analogues by more accurate reflection of specific rise in customer cost and shaping demand for these values. The model was used to get answers to two questions: which strategies of pricing can provide better indicators of project quality and whether it is reasonable to motivate demand by providing a free simplified version of value.