Ideas and Ideals

In the international academic community, U.S. economic statistics enjoy a reputation for exceptional reliability, with the United States consistently placed among the highest-ranked countries for accuracy in measuring GDP dynamics. To evaluate the foundation of this confi dence, the authors draw on their experience conducting alternative GDP estimates for the USSR, Russia, India, and China. This study examines the precision of U.S. economic statistics over the period 1970–1987 in three sectors – industry, construction, and agriculture. GDP volumes at current prices were defl ated using the manufacturing output price index for the processing industries and the fuel-price index for the extractive industries. The resulting alternative estimates of industrial GDP were compared with the offi cial fi gures published by U.S. statistical agencies. The offi cial GDP index in construction was checked based on the dynamics of housing commissioning and the share of housing construction in the total construction volume. In general, the analysis of statistics on the dynamics of US economic GDP confi rmed a high assessment of its reliability for the period 1970–1987, with the exception of price statistics.

Doubts about the reliability of American statistics for 1970–1987 arise when comparing favorable offi cial indicators of GDP dynamics with a large increase in the US national debt and a small (3-4%) share of construction in GDP for the period from 1990 to 2010. To assess the real dynamics of US GDP, natural indicators of production were adopted. They allow us to move on to calculating the dynamics of production in sectors of the economy that raise doubts about their reliability: manufacturing and construction. The greatest diffi culties arose with assessing the dynamics of the service sector. The authors assumed that labor productivity in it remained unchanged.

The calculations of the dynamics of production and labor productivity for 1990-2010 by sectors of the real economy showed an unprecedented drop in labor productivity in American economic history, which indicates deep troubles in the American economy during this period. The calculation of an alternative estimate of GDP dynamics revealed minimal growth indices: by 8% in the 1990s and by 4% in the 2000s, instead of the offi cial growth of 38% in the 1990s and 18% in the 2000s. Both estimates reveal a signifi cant slowdown in economic development in the 2000s. Possible reasons for this are considered. A conclusion is made about the most serious defects of American economic statistics in the period from 1990 to 2010.

Return on assets is an integral indicator that characterizes the effi ciency of using an organization’s property, which determines the need to identify reserves for its improvement, and this, among other things, is possible in the process of applying factor analysis. However, traditional models of return on assets do not refl ect the specifi cs of organizations’ activities, which determines the conduct of factor modeling and the development of new factor models. The purpose of this work is to develop tools for factor analysis of the profi tability of an organization’s assets and to develop a new model of profi tability of assets that takes into account the specifi cs of the activities of power generating organizations. Quantitative and qualitative methods were used to achieve this goal. Qualitative methods included analogy and comparative analysis, which made it possible to identify the specifi cs of the activities of power generating organizations. Quantitative methods covered the methods of economic analysis: horizontal, vertical, factorial, coeffi cient. The use of modeling made it possible to form a new fi vefactor asset profi tability model. The use of tabular and graphical methods made it possible to visualize the results of the study. Among the identifi ed specifi c factors for electric generating companies, it is worth noting the specifi c operating costs, capacity potential and capacity utilization factor. The results obtained can be used by power generating organizations in the process of managing the effi ciency of their assets.

The work is devoted to the analysis of the reasons for the ideological defeat of Marxism at the end of the 20th century. Without denying that during the Cold War the apologists of liberalism widely used manipulation of consciousness, the author believes that the main factor in the ideological defeat of Marxism was its objective systemic defects. The defi nition of ideology is given as part of the model of the world: a set of ideas about society and man (as an element of society), and the concept of ideologeme is introduced (“value judgments, ‘pretending’ to be a statement of facts”, or the declaration of philosophical hypotheses as scientifi c theories). The ideologemes underlying the theory of surplus value are revealed: a) value is created only by labor (the initial principle of the labor theory of value); b) the cost of labor power is equal to the subsistence minimum of workers. The falsity of Locke’s example, on the basis of which Marx accepted thesis (a), and the limited scope of application of thesis (b) are shown. It is substantiated that the theory of surplus value is, in essence, a special case of the theory of imperfect competition. It is concluded that Marxism is not a scientifi c doctrine, but a social ideology in the understanding of M. Blaug (with a claim to be fully scientifi c, while a signifi cant part of Marxism is nothing more than a set of socio-philosophical hypotheses).

In the context of turbulent political events on the world stage, economic ties are being restructured and the infl uence of global economic institutions is being reassessed. Changes in the economies of various countries affect the standard of living of their populations. The United States is an active driver and provocateur of turbulence and instability of the world order. Such events include hybrid wars against countries undesirable to the West, including Russia. In this regard, it becomes interesting to fi nd out what is happening inside the United States itself. The purpose of the study is to identify the presence of income inequality in the United States, as well as its causes and trends in recent years. In this regard, an analysis of the income of American citizens in divergence by race and gender for 2000-2023 was conducted. In addition, the dynamics of the coeffi cients characterizing the degree of income inequality of the population for the same period is considered. According to the results of the study, income inequality by race and gender in the United States remains, although it has been slowly decreasing over the years. At the same time, income inequality between the rich and the poor is growing. This inequality is particularly exacerbated during periods of crisis.

The study of the impact of the price level on the economic results of the system was carried out taking into account the degree of economic integration of participants in the system. Moreover, if the prices of intermediate products supplied to the market are relatively high, then the decrease in the volume of production of the main product of the focus company may reach a critical level at which the expediency of creating a structure for the production of a high-tech product in such quantities will be questionable. This case determines the need to regulate the level of transfer prices.

To study the tasks as a formal tool for describing the functioning of the system, matrix modeling based on the methodology of intersectoral balance (MOB) was used, economic and mathematical models were proposed that include supply and demand conditions in determining domestic prices. The results of the study contribute to an understanding of the optimal internal pricing policy of a company with horizontal and vertical links.

The study of the impact of the price level on the economic results of the system was carried out taking into account the degree of economic integration of participants in the system. Moreover, if the prices of intermediate products supplied to the market are relatively high, then the decrease in the volume of production of the main product of the focus company may reach a critical level at which the expediency of creating a structure for the production of a high-tech product in such quantities will be questionable. This case determines the need to regulate the level of transfer prices.

The object of consideration in the article is a production and technological chain consisting of fi rms with vertical and horizontal interaction. The purpose of the parent company in such a structure is to manufacture complex products, the components of which are component products supplied by the companies entering the system along technological chains. An important element of the functioning of such systems is the level of internal (transfer) prices for products supplied along the chain. The choice of an approach to the formation of the level of internal prices signifi cantly affects the performance of each participant in the chain and the system as a whole.

The scientifi c novelty of the study is the deepening of the methodological base for describing the interaction of participants in the production and technological chain in the process of forming internal prices. The article presents the results of a comparative analysis of the application of two approaches to determining transfer prices – at the cost level and using the “cost plus” method. It has been established that the formation of internal prices between interdependent entities based on market mechanisms gives worse results for the parent company in the chain than at prices equal to costs.

The object of consideration in the article is a production and technological chain consisting of fi rms with vertical and horizontal interaction. The purpose of the parent company in such a structure is to manufacture complex products, the components of which are component products supplied by the companies entering the system along technological chains. An important element of the functioning of such systems is the level of internal (transfer) prices for products supplied along the chain. The choice of an approach to the formation of the level of internal prices signifi cantly affects the performance of each participant in the chain and the system as a whole.

The scientifi c novelty of the study is the deepening of the methodological base for describing the interaction of participants in the production and technological chain in the process of forming internal prices. The article presents the results of a comparative analysis of the application of two approaches to determining transfer prices – at the cost level and using the “cost plus” method. It has been established that the formation of internal prices between interdependent entities based on market mechanisms gives worse results for the parent company in the chain than at prices equal to costs.To study the tasks as a formal tool for describing the functioning of the system, matrix modeling based on the methodology of intersectoral balance (MOB) was used, economic and mathematical models were proposed that include supply and demand conditions in determining domestic prices. The results of the study contribute to an understanding of the optimal internal pricing policy of a company with horizontal and vertical links.

The sanctions policy on the part of unfriendly countries has forced the domestic tourism market of Russia to develop rapidly. For a better understanding of what is happening in the tourism industry, it is necessary to conduct a review of the market as a whole. One of the promising areas of tourism is sanatorium treatment. The purpose of this study is to analyze the Russian market of tourist services as a whole, as well as to conduct a review of sanatorium and resort services and identify trends. Quantitative and qualitative methods were used to achieve this goal. Tabular and graphical methods were used for visualization. During the analysis, it was found that the share of gross value added of tourism in Russia in connection with the pandemic decreased in 2020 and only reached the pre-pandemic level in 2022. Based on the analysis of the market of sanatorium and resort services, the tourist fl ow was revealed mainly by citizens of the CIS. The development of domestic tourism contributed to an increase in hotel occupancy and prevented a greater decline in the industry. The calculated seasonality indices made it possible to determine the most and least busy months of the year. The article also examines the impact of the pandemic and sanctions against Russia on the tourism industry.

The paper analyzes the problems of the Russian oil and gas sector from the point of view of the interaction between oil companies and contractor service companies. The Russian oilfi eld services market formed in the 90s as part of the separation of non-core assets from oil and gas production enterprises. The trend of the last decade has been the development of their own services by oil and gas companies. The key features of the Russian oil services market are: inelasticity to hydrocarbon prices and production levels, the dominance of internal services of large companies, and, as a consequence, the monopsony nature of the market. In the context of increasing technological level of complexity and risks in the implementation of projects (depletion of existing fi eld reserves, Arctic projects, sanctions), the role of not only standard, but also high-tech work performed by service companies is growing. Oil and gas companies strive to build interactions with service companies in such a way as to minimize their risks. The existing format of interaction between oil and gas companies and service companies is not always acceptable for independent service companies in the regions, since it hinders their development. In competitive procedures, the price criterion dominates; the requirements for equipment and personnel qualifi cations on the part of oil and gas companies are growing, which companies cannot always meet. As a result, service contracts are often low-margin. We propose Norway’s experience in providing service companies with guaranteed long-term contracts and reduce the importance of the price criterion when choosing an oil service contractor.The paper analyzes the problems of the Russian oil and gas sector from the point of view of the interaction between oil companies and contractor service companies. The Russian oilfi eld services market formed in the 90s as part of the separation of non-core assets from oil and gas production enterprises. The trend of the last decade has been the development of their own services by oil and gas companies. The key features of the Russian oil services market are: inelasticity to hydrocarbon prices and production levels, the dominance of internal services of large companies, and, as a consequence, the monopsony nature of the market. In the context of increasing technological level of complexity and risks in the implementation of projects (depletion of existing fi eld reserves, Arctic projects, sanctions), the role of not only standard, but also high-tech work performed by service companies is growing. Oil and gas companies strive to build interactions with service companies in such a way as to minimize their risks. The existing format of interaction between oil and gas companies and service companies is not always acceptable for independent service companies in the regions, since it hinders their development. In competitive procedures, the price criterion dominates; the requirements for equipment and personnel qualifi cations on the part of oil and gas companies are growing, which companies cannot always meet. As a result, service contracts are often low-margin. We propose Norway’s experience in providing service companies with guaranteed long-term contracts and reduce the importance of the price criterion when choosing an oil service contractor.

The paper analyzes changes in structural policy in the USSR after Stalin’s death. They were intended to ease the material situation of the population of the USSR after the hardships on the eve and during the Great Patriotic War, which were only partially compensated for in the fi rst postwar period. These changes are called ‘the economic thaw of 1953’ by the author as an analogy with Ilja Ehrenburg story “The Thaw” and are barely covered in Russian economic literature.

The motives for implementing the structural maneouver of 1953 were the desire of the new soviet leadership to win the sympathy of soviet people.

The reform of 1953 is analyzed on the basis of the report of A.I. Mikoyan at the congress of trade workers of the USSR in October 1953 and a number of other sources.

The additional targets established for the production of consumer goods by industry for 1953 are compared with the targets of the fi ve-year plan. They appear to be signifi cantly higher than these targets for all types of products, especially for durable goods.

These fi ve-year plan tasks were fulfi lled for the fi rst time in the history of fi ve-year plans. At the same time, additional tasks for 1955 were not fulfi lled because they were not realistic. Great efforts were made to improve the living condition of the population by producing goods that make life easier, expanding the network of trade and public catering enterprises and improving the quality of their work.

In 1955, as a result of Мalenkov removal from the post of Chairman of the Council of Ministers of the USSR, there was a partial rejection of the structural maneuver of 1953. The Analysis shows that additional targets for the production of consumer goods for 1955 overestimated the real capabilities of the economy at that time. By diverting resources from heavy industry, those plans slowed down technical progress and the renewal of fi xed assets.

When economic theory and business models are lagging in relation to practice, there is a need to form business designers ahead of practice, defining specific directions, strategies, algorithms for running a separate business, and accurately predicting its results. With the expansion of the project approach to the field of business, the question arises of how to make this business more efficient by involving natural and artificial intelligence resources. Consider a business constructor as a business design tool. A business designer is a set of components from which a business model and project are formed, and their features are determined by the content of a particular business, the specifics of its development stage, and a set of internal and external conditions. The business designer occupies an intermediary position between business analytics and real business. We will associate the deployment of ideas about the business designer with the application of a categorical methodology in it. In this sense, an organizational and business game, Insafing, will be organized, reviewed and analyzed, which can be applied to business design. The use of the following shows promise: categorical methodology, including: categorical system methodology (KSM), theory of dynamic information systems (TDIS). In economics, a discrepancy between theory and practice is common. This discrepancy is overcome in Insafing, which can be a theoretical component of a business designer, along with the use of KSM, TDIS. Insafing is capable of becoming a business engineering tool. One of the problems of modern business is the difficulty of introducing new intellectual products in it. The direction of modernization (digitalization, artificial intelligence, automation) contributes to the entry of business to a new intellectual level. Digitalization can contribute to this. The article shows how digital encoding allows one to implement business design and modeling. A business constructor is proposed, a design that provides for the design of categorical schemes corresponding to specific business tasks. It is shown that the design of a business is quite consistent with developments in the categorical methodology. It is convenient to start with fairly general categories, which we have done with the help of a Universal Conceptualizer (UC). The use of the UC allowed us to generate many categories that already characterize the business directly, then TDIS and KSM were applied, giving models and other theoretical constructions a predictive character.

The article analyzes the conceptual and practical problems in the field of tax control of transfer prices in transactions between interdependent participants, and provides an overview of the methods of their assessment. The lack of publicly available information on prices, the lack of comparable transactions, and the high labor cost of a comprehensive analysis of the financial and economic activities of related firms limit the control of public authorities in this area.

The application of the basic concept of “at arm’s length” in the implementation of tax policy is not always consistent with the strategies of financial management firms that seek to optimize not only tax payments, but also other economic indicators. The transfer pricing mechanism (hereinafter referred to as the TC) affects the costs, profits, and output volumes of all participants in the chain, so the choice of the optimal level of domestic prices for the supply of components should be based on target criteria.

The “arm’s length” concept does not take into account firms’ motives for vertical integration and consolidation. The task of the interdependent participants is to organize the production process in such a way as to increase the efficiency of the entire technological chain. Choosing a specific pricing policy within complex “fan-shaped” structures with many levels and links is a peculiar method of coordinating work in a system based on integration. The application of a market-based approach to determining domestic prices should be complemented by a mechanism for adjusting them, which will achieve the planned targets for various participants in the chain.

The article substantiates that in the implementation of tax and industrial policy it is important to ensure a balance of interests of various parties: the state and business. On the one hand, it is necessary to prevent tax evasion as a result of the withdrawal of enterprises’ funds abroad, on the other hand, it is important to understand the nature and functions of transfer prices, which serve as a tool for optimizing financial and economic performance of fi rms.  Within the framework of the current legislation, a compromise solution is provided – agreed transfer pricing.