Higher Competition in the Domestic Market – A Way to Boost Aggregate Productivity
Competition is a good thing not only because of lower prices and larger variety. Higher competition in the domestic market also shifts necessary labour and capital resources from less productive domestic-oriented firms to export-oriented productivity champions. Such firms will make better use of production factors and generate larger output. Thus, simply increasing the level of...
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Do Regional Ties Add to Depositor Trust during the Crisis? Evidence from Russia
The question of whether regional banks should be treated differently has recently become all the rage in the banking authorities’ debates in Russia. We add to this discussion by analyzing bank regional ties in the flight-to-familiarity context, which implies that agents naturally feel more favorable about what they are comfortable or familiar with. We use...
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Gaming the System: Side Effects of Earnings-Dependent Benefits
Today policy makers in developing and middle-income countries face tremendous challenges in combating various forms of tax evasion. Increasingly it is proposed to tie social security benefits to the reported income and in this way increase tax compliance incentives. We use administrative data from Latvia to study generous childcare benefits, which depend on the reported...
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Socio-Economic Policy in Poland: A Year of Major Changes in Benefits, Taxes, and Pensions
2016 was the first full calendar year of the new Polish government elected to power in October 2015. The year marked a number of major changes legislated in the area of socio-economic policy some of which have already been implemented and others that will take effect in 2017. In this policy brief, we analyse the...
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The Anatomy of Recession in Belarus
After impressive growth in the 2000s, Belarus’ economy has since the currency crisis of 2011 stalled. Structural issues – dominance of the state sector and directed lending practices – have made growth anemic. Recession for Belarus’ main trading partner and the decline of oil prices has aggravated the long-run problems. We perform growth diagnostics to...
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