Production structure, income distribution and macroeconomic efficiency: an analysis framework and empirical study of the Marxist political economy

PurposeIn the current literature, there is little systematic research on the relationship among adjustment of the income distribution, change in economic structure and improvement of macroeconomic efficiency.Design/methodology/approachThis paper expands Marx's reproduction schema into the “Marx–Sraffa” three-department structure table comprising fixed capital, general means of production and means of consumption and employs China's input–output table from 1987 to 2015 to portray the relationship between income distribution and macroeconomic efficiency under investment-driven growth.FindingsThis paper calculates the wage–profit curve of China's economy and evaluates the space of macroeconomic efficiency improvement in China based on the deviation between actual and potential income distribution structure.Originality/valueThe results show that there is a downward trend of the profit rate, which meets Marx's theoretical prediction, and the decline in the profit rate is mainly attributed to an increase in the organic composition of capital arising from the rapid growth of fixed capital investment under extended growth. The analysis of macroeconomic efficiency shows that the space for improving macroeconomic efficiency is extremely limited under traditional growth pattern and that China must transform its economic development pattern and foster new economic growth drivers.

Macroeconomic Efficiency of Photovoltaic Energy Production in Polish Farms

The public’s awareness of threats to the natural environment, as well as the hazard to human lives and health posed by the use of fossil fuels to generate energy has resulted in the growing interest in renewable energy sources, thus promoting attempts to reduce the dependency on conventional energy sources. Among the former, solar energy is one of the most promising. The aim of this study is to assess the macroeconomic efficiency of investments in photovoltaic installations to meet the demand for electricity of farms and agricultural production. Calculations were prepared for 48 variants comprising three farm types (dairy farms, field cropping farms, and mixed production farms), as well as 16 locations throughout Poland. The obtained results indicate high efficiency of electricity production using photovoltaic installations to cover the needs of farms in Poland. In macroeconomic accounting, NPV ranges from EUR 8200 to almost EUR 23,000, with the payback period depending on the farm type ranging from 4.3 up to 6 years, while the internal rate of return amounts to 21–32%. Increasing the scope of investments in photovoltaics (PV) to cover the electricity demand not only of the household, but also of the agricultural production leads to improved economic efficiency of energy production both in the macro- and microeconomic terms.

ASSESSMENT OF THE STRATEGIC EFFICIENCY OF LARGE-SCALE INFRASTRUCTURE PROJECTS IN A SITUATION OF UNCERTAINTY: A PROJECT APPROACH

The article deals with the problems of assessing the macroeconomic efficiency of large-scale projects at the stage that is commonly called pre-investment. The necessity of taking into account the factor of radical uncertainty when evaluating large-scale railway projects is justified. The pur-pose of the study. To show that the effects generated by large-scale projects affect the scenario of the development of the economy hosting the project. In this problematic situation, a methodology is proposed for evaluating and identifying the most preferable project, taking into account the factors of radical (improbability) uncertainty. Materials and methods. The criteria for evaluating projects at three levels are analyzed: macro-, meso- and micro; at the same time, the tools of applied non-system analysis are used, combining logical-heuristic and economic-mathematical models of mak-ing complex project decisions. Results. A structural evaluation model has been developed, which is a hybrid consisting of two blocks. The first block is a logical-heuristic submodel for evaluating large-scale investment projects, the second block is an economic-mathematical submodel that displays the external environment of projects. The models interact at the pre-investment stage of the project lifecycle in the mode of a strategic game at the macro level. The first as an information base is based on expert estimates of the costs and results of projects that claim to be implemented in the long term, the second-mainly on statistical information from the country and regions. The im-pact of a new large-scale investment project on the model of the Russian economy is evaluated and the positive or negative impact of each (from among the considered ones) on the target function of the economic model is identified. Conclusion. The article comments on the results of experimental calculations using a hybrid model and, using the example of railway transport, formulates recom-mendations for its use in the development of substantiating materials for large-scale projects of fe-deral significance.

On Assessing the Impact of Coronavirus Epidemic in Russia on Population Incomes

The paper discusses an approach to assessing the impact of the coronavirus epidemic in Russia on economic efficiency and, as a result, on the monetary income of the country's population. The approach used is based on the application of the methodology of mathematical modeling. Based on the analysis of statistical information, it is shown that there is a correlation between the dynamics of the average per capita income of the population and GDP. To assess the dynamics of GDP, a dynamic model of the impact of restrictive measures aimed at curbing the spread of the coronavirus epidemic on macroeconomic efficiency is constructed. The main hypothesis of the model is that the main factor affecting the efficiency of the economy is the productivity of workers who create GDP. In the constructed model, all employees are divided into three groups. The first group – ​workers whose activities were not affected by the coronavirus; the second group-workers whose productivity decreased due to the coronavirus; the third group-workers whose productivity fully or partially recovered after the easing of restrictive measures. As a result, the dynamics of GDP is determined by a system of three ordinary differential equations with parameters depended on the epidemiological situation. To assess the indicators that characterize the spread of infection and affect the parameters of the macroeconomic efficiency model, a discrete modification of the classical SIR-model of the epidemic with piecewise constant parameters is constructed. This model allowed us to estimate the dynamics of the average for the four day values of the basic reproductive numbers and other indicators of spread of infection through the use of official statistical information in the base period, and to perform scenario calculations for the development of the epidemic in Moscow and beyond until July 2021 Developed modification of the SIR model allows for its clarification with regard to the influence of vaccination on the dynamics of epidemiological process.

USE OF CLUSTER INITIATIVES IN THE RESTAURANT DEVELOPMENT SYSTEM OF UKRAINE

The article investigates the use of cluster initiatives in the system of development of the restaurant industry of Ukraine. The classification of food products of agrarian and industrial complex which are realized by establishments of restaurant economy is developed. The relevance of the chosen topic is due to the need to develop the concept of state initiatives for clustering of the restaurant industry as a mechanism for program regulation of the efficiency of the restaurant industry. The mechanism of interaction of the restaurant cluster is given. It is determined that the introduction of restaurant clusters will allow initiating the process of changing the structure of procurement by restaurants in favor of domestic raw materials. It is analyzed and established that for the development of the restaurant industry are quite attractive tourist regions, in which it will be possible to form the following main clusters: food, tourism and transport. The classification of clusters of the tourist region is given. It will also be necessary to increase and optimize tourist flows and reorganize the transport system. The development of such large-scale clusters should be regulated by the state, but in this case the restaurant cluster should be separate in each region, taking into account the specifics of a particular region and providing greater cluster flexibility, which will not eliminate the need to define restaurant cluster and adjacent clusters. Therefore, to increase the macroeconomic efficiency of restaurants, it was proposed to implement state targeted programs for the initiation and development of clusters of restaurants on the basis of food and recreational tourism clusters. The place of the restaurant cluster in the structure of food and tourism clusters was also determined, the connection with the transport cluster was established. A model of interaction of the main participants of the restaurant cluster has been developed, which provides an opportunity to stimulate the development of both restaurant entities and related economic activities.

Scrap Superannuation

Economically, there can be only one retirement income system. This system allocates goods and services at the time they are needed to retirees who do not have alternative non-work income sources to sustain a socially acceptable level of welfare.Superannuation does not fulfil the requirements of a retirement income system. Instead, it is best thought of as a growth-sapping, resource-wasting, tax-advantaged asset purchase scheme for the wealthy, which may ultimately have little effect on reducing reliance on the age pension system. The age pension vastly outperforms superannuation as a retirement income system across three key areas: macroeconomic cost, macroeconomic efficiency, and fairness. Vested interests perpetuate economic myths to avoid scrutiny of the superannuation system, such as 1) that the age pension system is financially constrained, 2) that pre-funding via asset purchases increases the capacity of a retirement income system, and 3) that superannuation is a payment from employers rather than from wages.Scrapping the superannuation system would massively improve Australia’s economic performance, and thus the performance of our retirement income system, the age pension. This can be done by forcing employers to pay what is now superannuation directly into wage accounts and allowing all super fund holders to withdraw up to a maximum amount each year during a transition period, after which all super balances will receive no special tax treatment. The age pension system could also be enhanced in both size (payment rates, including rent assistance) and scope (reducing the age that people qualify from 67 to 60), vastly increasing the fairness and efficiency of Australia’s retirement income system and economy as a whole.

SOME APPROACHES TO EVALUATION MACROECONOMIC EFFICIENCY OF DIGITALISATION

Purpose – the purpose of the article is to study the effect of digitalisation development indicators on per-capita GDP growth. Research methodology – the basic research method is the fixed-effects panel regression that describes the effect of the digitalisation development indicators on per-capita GDP between 1999 and 2017. Findings – research showed the most critical factors for per-capita GDP growth are the ones that linked with fixed and mobile subscriptions. Research limitations – The limitations of the research stem from the limitations of analysis as the method that has been employed makes it possible to measure the effect of the selected variables on per-capita GDP, but further research requires a detailed analysis of the factors being studied in application to each country. Practical implications – The findings can be used as a basis for choosing areas of more detailed factor analysis of the digitalisation process effectiveness and can support investment decision-making. Originality/Value – The study enables one to identify the most and the least important factors that are reflected by digitalisation indicators that have an impact on the per-capita GDP.