Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions
The article provides estimates of the social discount rate and regional welfare weights for the Russian Far East territories. The key parameter for their calculations is the elasticity of the marginal utility of consumption, estimated for the Russian Federation as a whole on the basis of the consume...
Published in: | Spatial Economics |
---|---|
Main Author: | |
Format: | Article in Journal/Newspaper |
Language: | Russian |
Published: |
Economic Research Institute of the Far East Branch of the Russian Academy of Sciences
2021
|
Subjects: | |
Online Access: | https://doi.org/10.14530/se.2020.4.023-043 https://doaj.org/article/2018e4cdc316409198b3988e32499071 |
id |
ftdoajarticles:oai:doaj.org/article:2018e4cdc316409198b3988e32499071 |
---|---|
record_format |
openpolar |
spelling |
ftdoajarticles:oai:doaj.org/article:2018e4cdc316409198b3988e32499071 2023-05-15T15:54:50+02:00 Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions Artyom Gennadyevich Isaev 2021-02-01T00:00:00Z https://doi.org/10.14530/se.2020.4.023-043 https://doaj.org/article/2018e4cdc316409198b3988e32499071 RU rus Economic Research Institute of the Far East Branch of the Russian Academy of Sciences http://www.spatial-economics.com/images/spatial-econimics/2020_4/SE.2020.4.023-043.Isaev.pdf https://doaj.org/toc/1815-9834 https://doaj.org/toc/2587-5957 doi:10.14530/se.2020.4.023-043 1815-9834 2587-5957 https://doaj.org/article/2018e4cdc316409198b3988e32499071 Prostranstvennaâ Èkonomika, Vol 16, Iss 4, Pp 23-43 (2021) household welfare social discount rate regional wealth weights public investment region far eastern federal district Economics as a science HB71-74 article 2021 ftdoajarticles https://doi.org/10.14530/se.2020.4.023-043 2022-12-31T10:05:32Z The article provides estimates of the social discount rate and regional welfare weights for the Russian Far East territories. The key parameter for their calculations is the elasticity of the marginal utility of consumption, estimated for the Russian Federation as a whole on the basis of the consumer demand function for food products. It’s revealed that for different territories should be applied different social discount rates for to assess the social effects of projects with state participation. The reason is that territories differ in the quality of life, which can be traced through interregional differences in the level and dynamic of the domestic consumer market as well as the size and structure of household income and expenditure. The social discount rate is sensitive to the future annual growth rate of household consumption in the region. If we take the actual average annual rates for 2000–2018 as forecast values, the Sakhalin Oblast has the highest social discount rate (12 per cent), and the Chukotka Autonomous Okrug has the lowest rate (7.6 per cent). Regional welfare weights show how the regions of the Far East are ranked according to the degree of impact of public investment on marginal changes in the welfare of their households. Thus, the lowest marginal increase in welfare in the Far Eastern Federal District will be observed in the Sakhalin Region, followed by the Khabarovsk Territory. From the social efficiency point this casts doubt on the choice of these regions as priority locations for large-scale public projects. On the other hand the largest effect of public projects for the improving of welfare will be observed in the Jewish Autonomous Oblast and the Zabaikalsky Krai. These regions are characterized by the highest values of regional welfare weights in the Far East for 2018, and consequently the highest marginal welfare growth for households due to public investment. It is worth noting that in 2010 the Chukotka Autonomous Okrug and Kamchatsky Krai were characterized by the highest values of ... Article in Journal/Newspaper Chukotka Chukotka Autonomous Okrug Sakhalin Directory of Open Access Journals: DOAJ Articles Spatial Economics 16 4 23 43 |
institution |
Open Polar |
collection |
Directory of Open Access Journals: DOAJ Articles |
op_collection_id |
ftdoajarticles |
language |
Russian |
topic |
household welfare social discount rate regional wealth weights public investment region far eastern federal district Economics as a science HB71-74 |
spellingShingle |
household welfare social discount rate regional wealth weights public investment region far eastern federal district Economics as a science HB71-74 Artyom Gennadyevich Isaev Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
topic_facet |
household welfare social discount rate regional wealth weights public investment region far eastern federal district Economics as a science HB71-74 |
description |
The article provides estimates of the social discount rate and regional welfare weights for the Russian Far East territories. The key parameter for their calculations is the elasticity of the marginal utility of consumption, estimated for the Russian Federation as a whole on the basis of the consumer demand function for food products. It’s revealed that for different territories should be applied different social discount rates for to assess the social effects of projects with state participation. The reason is that territories differ in the quality of life, which can be traced through interregional differences in the level and dynamic of the domestic consumer market as well as the size and structure of household income and expenditure. The social discount rate is sensitive to the future annual growth rate of household consumption in the region. If we take the actual average annual rates for 2000–2018 as forecast values, the Sakhalin Oblast has the highest social discount rate (12 per cent), and the Chukotka Autonomous Okrug has the lowest rate (7.6 per cent). Regional welfare weights show how the regions of the Far East are ranked according to the degree of impact of public investment on marginal changes in the welfare of their households. Thus, the lowest marginal increase in welfare in the Far Eastern Federal District will be observed in the Sakhalin Region, followed by the Khabarovsk Territory. From the social efficiency point this casts doubt on the choice of these regions as priority locations for large-scale public projects. On the other hand the largest effect of public projects for the improving of welfare will be observed in the Jewish Autonomous Oblast and the Zabaikalsky Krai. These regions are characterized by the highest values of regional welfare weights in the Far East for 2018, and consequently the highest marginal welfare growth for households due to public investment. It is worth noting that in 2010 the Chukotka Autonomous Okrug and Kamchatsky Krai were characterized by the highest values of ... |
format |
Article in Journal/Newspaper |
author |
Artyom Gennadyevich Isaev |
author_facet |
Artyom Gennadyevich Isaev |
author_sort |
Artyom Gennadyevich Isaev |
title |
Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
title_short |
Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
title_full |
Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
title_fullStr |
Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
title_full_unstemmed |
Social Efficiency Indicators of Public Investment: The Case of the Far Eastern Regions |
title_sort |
social efficiency indicators of public investment: the case of the far eastern regions |
publisher |
Economic Research Institute of the Far East Branch of the Russian Academy of Sciences |
publishDate |
2021 |
url |
https://doi.org/10.14530/se.2020.4.023-043 https://doaj.org/article/2018e4cdc316409198b3988e32499071 |
genre |
Chukotka Chukotka Autonomous Okrug Sakhalin |
genre_facet |
Chukotka Chukotka Autonomous Okrug Sakhalin |
op_source |
Prostranstvennaâ Èkonomika, Vol 16, Iss 4, Pp 23-43 (2021) |
op_relation |
http://www.spatial-economics.com/images/spatial-econimics/2020_4/SE.2020.4.023-043.Isaev.pdf https://doaj.org/toc/1815-9834 https://doaj.org/toc/2587-5957 doi:10.14530/se.2020.4.023-043 1815-9834 2587-5957 https://doaj.org/article/2018e4cdc316409198b3988e32499071 |
op_doi |
https://doi.org/10.14530/se.2020.4.023-043 |
container_title |
Spatial Economics |
container_volume |
16 |
container_issue |
4 |
container_start_page |
23 |
op_container_end_page |
43 |
_version_ |
1766390077139714048 |