The Putin doctrine: The formation of a conceptual framework for Russian dominance in the post-Soviet area. OSW Commentary No. 131, 28.03.2014

The statements made in recent weeks by Russian officials, and especially President Vladimir Putin, in connection with Moscow’s policy towards Ukraine, may suggest that the emergence of a certain doctrine of Russian foreign and security policy is at hand, especially in relation to the post-Soviet area. Most of the arguments at the core of this doctrine are not new, but recently they have been formulated more openly and in more radical terms. Those arguments concern the role of Russia as the defender of Russian-speaking communities abroad and the guarantor of their rights, as well as specifically understood good neighbourly relations (meaning in fact limited sovereignty) as a precondition that must be met in order for Moscow to recognise the independence and territorial integrity of post-Soviet states. However, the new doctrine also includes arguments which have not been raised before, or have hitherto only been formulated on rare occasions, and which may indicate the future evolution of Russia’s policy. Specifically, this refers to Russia’s use of extralegal categories, such as national interest, truth and justice, to justify its policy, and its recognition of military force as a legitimate instrument to defend its compatriots abroad. This doctrine is effectively an outline of the conceptual foundation for Russian dominance in the post-Soviet area. It offers a justification for the efforts to restore the unity of the ‘Russian nation’ (or more broadly, the Russian-speaking community), within a bloc pursuing close integration (the Eurasian Economic Union), or even within a single state encompassing at least parts of that area. As such, it poses a challenge for the West, which Moscow sees as the main opponent of Russia’s plans to build a new order in Europe (Eurasia) that would undermine the post-Cold War order.

Defining an Institutional Framework for the Labour Market. Factor Markets Working Paper No. 24, February 2012

This paper describes a conceptual framework for the empirical analysis of farmers’ labour allocation decisions. The paper presents a brief overview of previous farm household labour allocation studies. Following this, the agricultural household model, developed by Singh, Squire and Strauss (1986), which has been frequently applied to the study of labour allocation, is described in more depth. The agricultural household model, the theoretical model to be used in this analysis, is based on the premise that farmers behave to maximise utility, which is a function of consumption and leisure. It follows that consumption is bound by a budget constraint and leisure by a time constraint. The theoretical model can then be used to explain how farmers decide to allocate their time between leisure, farm work and off-farm work within the constraints of a finite time endowment and a budget constraint. Work, both farm and off-farm, provides a return to labour which in turn relaxes the budget constraint allowing the farm household to consume more. The theoretical model can also be used to explore the impact on government policies on labour allocation. It follows that subsidies that decrease commodity prices, such as reductions in intervention prices, mean that farmers have to work more (either on or off the farm) to maintain income and consumption levels. On the other hand, income support subsidies that are not linked to output or labour, such as decoupled subsidies, are a source of non-labour income and as such allow farmers to work less while maintaining consumption levels, known as the wealth effect.

The Theoretical Framework and Methodology to Estimate the Farm Labour and Other Factor-Derived Demand and Output Supply Systems. Factor Markets Working Document No. 44, May 2013

This paper provides a conceptual framework for the estimation of the farm labour and other factor-derived demand and output supply systems. In order to analyse the drivers of labour demand in agriculture and account for the impact of policies on those decisions, it is necessary to acknowledge the interaction between the different factor markets. For this purpose, we present a review of the theoretical background to primal and dual representations of production and some empirical literature that has made use of derived demand systems. The main focus of the empirical work is to study the effect of market distortions in one market, through inefficient pricing, on the demand for other inputs. Therefore, own-price and cross-price elasticities of demand become key variables in the analysis. The dual cost function is selected as the most appropriate approach, where input prices are assumed to be exogenous. A commonly employed specification – and one that is particularly convenient due to its flexible form – is the translog cost function. The analysis consists of estimating the system of cost-share equations, in order to obtain the derived demand functions for inputs. Thus, the elasticities of factor substitution can be used to examine the complementarity/substitutability between inputs.