Choice of the substitution currency in Russia: How to explain the dollar's dominance?

The analysis of external economic relations of Russia reveals a paradox: while Europe is the main trade and direct investment partner of Russia, this is far from being the case concerning its currency’s role in Russia's financial activities. The dollar is much preferred by economic agents for financial operations. This paper proposes a disaggregated approach to this issue by separating the ‘means of exchange’ and ‘store of value’ components of the use of substitution currencies. The influence of three main factors (inertial component, real trade relations and exchange rate fluctuations) on the relative demand for the euro by Russian economic agents is tested for the period 1999-2004. Finally we suggest a theoretical interpretation of the results based on the conventions theory approach.dollarisation; euroisation; transition; Russia; currency substitution; asset substitution; network externalities; hysteresis; conventions

Toward Quantum Combinatorial Games

In this paper, we propose a Quantum variation of combinatorial games, generalizing the Quantum Tic-Tac-Toe proposed by Allan Goff. A combinatorial game is a two-player game with no chance and no hidden information, such as Go or Chess. In this paper, we consider the possibility of playing superpositions of moves in such games. We propose different rulesets depending on when superposed moves should be played, and prove that all these rulesets may lead similar games to different outcomes. We then consider Quantum variations of the game of Nim. We conclude with some discussion on the relative interest of the different rulesets

Power domination in maximal planar graphs

Power domination in graphs emerged from the problem of monitoring an electrical system by placing as few measurement devices in the system as possible. It corresponds to a variant of domination that includes the possibility of propagation. For measurement devices placed on a set S of vertices of a graph G, the set of monitored vertices is initially the set S together with all its neighbors. Then iteratively, whenever some monitored vertex v has a single neighbor u not yet monitored, u gets monitored. A set S is said to be a power dominating set of the graph G if all vertices of G eventually are monitored. The power domination number of a graph is the minimum size of a power dominating set. In this paper, we prove that any maximal planar graph of order n $\ge$ 6 admits a power dominating set of size at most (n--2)/4

Liquidity provision in transition economy: the lessons from Russia

This paper provides micro and macroeconomic analysis of the economic role of banks in the Russian economy. Using a large panel containing Russian enterprises’ balance sheet and income statement data, we evaluate the determinants of bank financing. Econometric model put out the existence of liquidity providing activity of Russian banks. Even though the overall liquidity provision system suffers from certain deficiencies, we demonstrate its importance in the macroeconomic context, using time series econometric analysis. Bank credit appears to be a significant factor in explaining the non-payment dynamics and use of informal financing. Finally, the uncertainty concept helps us to understand the reasons for a limitation of Russian banks in their liquidity providing role.liquidity; finance; transition; Russia; uncertainty; banks; inter-enterprise credit