Rozmainsky I.V., Skorobogatov A.S. Investor Myopia as an Institutional Barrier to Economic Growth in Post-Soviet Russia.
    The paper deals with analysis of special barrier to economic growth in Post-Soviet Russia which is Investor Myopia. This concept means that agents evaluate consequences of their decisions only over short-time horizon. In other words, Investor Myopia implies that investors think only about assets with short pay-back period. Typically, such assets are non-productive. Therefore Investor Myopia affects production, fixed capital investment and technical progress adversely. The paper shows that Investor Myopia becomes an organic part of human behavior due to adverse features of institutional environment. Such features are, first of all, the government failure to provide contracts enforcement and high degree of agents opportunism. Under Investor Myopia both monetary and fiscal policy fail to encourage private investment. In such case institutional changes are relevant.


contentContents

back   Back to home page