• M. Fleurbaey – Beyond GDP: The Quest for a Measure of Social Welfare. Part I
• O. Antipina – Economics of Happiness as an Academic Research Discipline

• E. Penukhina, D. Belousov, K. Mikhailenko – Economic Effects of 2004—2009 Tax Reforms: Retrospective Analysis
• Yu. Astashov – The Golden Age in Russian Refining: Outcomes and Prospects
• A. Zhuk – Taxation Trap in Development of Entrepreneurship in Russia

• G. Kleiner – On the Limits of the Unlimited (On the Book «Noneconomic Faces of Economy: Obscure Reciprocal Influence. Scientific and Journalistic Notes by Social Scientists»)
• P. Orekhovsky – Closeness of a Catastrophe (On the Book by G. Pavlovsky «Brilliant Power! The Dictionary of the Kremlin Abstractions»)

• A. Yakovlev – December Protests in Moscow through the Lenses of Historical Analogies

Abstracts

The article reveals two factors which determined social and economic development of Russia in 2011: future elections and the global economic crisis. Relative sustainability of the Russian economy is noted. Still, macroeconomic stability remains fragile. Principal features of the global economic crisis are considered: its structural and systemic character. The specifics of Russian economic policy is analyzed. A new model of growth is proposed that is based on supply-side economics, its key elements are studied. Recent political changes in the Russian society are analyzed as well as their influence on economic dynamics. The necessity of complex modernization in Russia is stressed.

JEL classification: E02, E6
Keywords: global economic crisis, modernization, supply-side economics.

The analysis is based on the Russia Longitudinal Monitoring Survey (RLMS). Individual replacement rates are estimated for the first time. Russian pension system proves to be oriented rather on social policy objectives than on smoothing consumption over the life cycle. The efficiency of pension system happens to be relatively low — for instance, over ¹/₃ of base pensions is paid to people with income above median level. We give proofs that social policy for working and non-working pensioners should not be the same, as they have drastic differences in the income level. Estimates are given for possible economy of pension system financing if benefits are provided on a more focused basis. A new approach to the analysis of incentives and impediments for raising retirement age is suggested. Its application demonstrates that substantial part of pensioners is willing to work further in exchange for material stimulus. Most likely they would support higher retirement age if they realized that this will result in higher pension benefits.

JEL classification: J26
Keywords: pension system, individual replacement rate, retirement age.

The paper examines the dynamics in demand and supply of skilled labor in the Russian economy over the transition period of 1990—2000s. It shows that despite a huge inflow of workers with tertiary education demand for such workers grew in the Russian labor market even faster. This explains why unemployment for workers with high educational attainment remained low; why returns to education continued to be high; why a proportion of college graduates who occupied low-skilled jobs decreased rather than increased. However in the next decades the correlation between demand and supply might radically change so that the Russian economy could face massive oversupply of highly educated workforce.

JEL classification: J2
Keywords: demand and supply, skilled labor, labor market

The first part of the paper is devoted to the monetary indicators of social welfare. It is shown which methods of quantitative estimating the aggregate wealth and well-being are available in the modern economic theory apart from the traditional GDP measure. The limitations of the methods are also discussed. The author shows which measures of welfare are adequate in the dynamic context: he considers the problems of intertemporal welfare analysis using the Net National Product (NNP) for the sustainability policy and in the context of concern for well-being of the future generations.

JEL classification: I31, E23, E01
Keywords: GDP alternatives, NNP, revealed preferences, social welfare function, green accounting, sustainable development, equivalent incomes.

The article contains a review of the contemporary research in the field of economics of happiness. Economics of happiness deals with correlation between the subjective notion of well-being and happiness with one’s life (happiness level) and economic indicators. The author considers the correlation of economic and noneconomic factors. The last ones — such as education and health — also affect the level of happiness. The author dwells upon the following questions: research methodology in economics of happiness, correlation between subjective notion of well-being and happiness with one’s life and economic performance on micro- and macrolevels.

JEL classification: B40, B20, I00, O10
Keywords: economic theory, economics of happiness, economic imperialism

The article determines, describes and analyzes phases of tax reforms in Russia. We estimate macroeconomic and fiscal effects of various tax policies held during the second and third phases of tax reforms. The necessity of providing a balanced budget system, as well as complex assessment of effects of tax policy changes for the development of the Russian economy is noted.

JEL classification: E02, H20
Keywords: tax reforms, macroeconomic effects, tax burden, VAT, social insurance assignments.

The article considers the state of things in Russian oil refining. The options for its modernization are analyzed, as well as the effects of tax reforms in the sector. It is noted that current tax reforms mostly touch upon refining, not oil extraction, so one can expect further reforms in the sector and their impact on the industry.

JEL classification: L71
Keywords: tax reform, oil refining, modernization, refining margin.

The paper considers the problem of improving the quality of taxation institution in Russia using institutional economic theory research tools. The taxation institution analysis reveals the institutional trap in its structure which distorts national taxation system functioning and leads to complete abandonment of tax payments by national economic agents. On the basis of the analysis of tax revenues and directions and quality of public expenditure the author grounds the necessity of modernization of the national system of public needs satisfaction in the direction of the actual public goods and services production.

JEL classification: H20
Keywords: institution, institutional trap, taxation, modernization.

Analyzing mass protest movements in different countries this paper argues that protests against electoral fraud in Moscow in December 2011 do not represent "Russian Spring," "Orange Revolution," or a new version of Perestroika. Rather they have more in common with the Progressive movement that fought political corruption in the U.S. during the early part of the 20th century. The author notes that protest movement can provide new chances for institutional reforms and social development but only if main elite groups are ready to cooperate in elaboration of new more open and more transparent "rules of the game".

JEL classification: A13, N91, Z18
Keywords: protest movements, electoral fraud, political corruption.