Russian Households Research Articles

Who buys fakes in Russia and why?

The recent departure of international brands from the Russian markets is unprecedentedly; its consequences require thoroughly study, especially in the context of consumer behavior towards non-original goods. This paper analyzes the dynamics of counterfeit purchases in Russia in 2021—2023 and socio-economic factors that explain the purchase of fakes, given that the latter differ from standard economic goods with high symbolic value. Quantitative data representing the Russian Internet audience aged 18 years and older is used. Three waves of the online survey were conducted: in 2021 (N = 4978 people), 2022 (N = 6000 people) and 2023 (N = 6000 people). According to the results, the purchase of counterfeits is a widespread phenomenon in Russia. Russians purchase non-original goods mostly unintentionally, although in the last two years of the survey there have been structural shifts towards their knowingly buying. With the help of multinomial regression, factors for purchasing counterfeits were revealed. The availability of counterfeits on the Internet and the financial limitations of Russian households contribute to expanding the audience of consumers of non-original goods, whereas a focus on high quality when choosing goods reduces the number of buyers of counterfeits. The role of well-known brands in the consumption of counterfeit products remains ambivalent

How Credible Is the Central Bank of Russia to Russian Households?

The article examines the degree of public trust in the Central Bank of Russia after the transition to inflation targeting. For this purpose, the author analyzes available data from inFOM consumer surveys of confidence in the Bank of Russia as a whole as well as in its inflation targets from 2014 to 2024. Public confidence in the Bank of Russia remained relatively high from 2014 to 2017 as inflation targeting was adopted, but the Bank became far less credible to households from 2019 to 2022 because they did not believe the inflation target of 4% was achievable by the end of the current year or over the medium term. This is probably due to their lack of awareness that the Bank’s principal goal is price stability even though they are actually experiencing high inflation. The households surveyed think that government authorities are largely responsible for controlling inflation. Furthermore, consumers do not take notice of the information provided by the Central Bank of Russia. Using news articles from Russian media, posts from news communities on the VKontakte social network, and Google Trends search queries, the author shows that consumers who ignore information about the Bank’s policy are at a serious disadvantage when there is economic uncertainty. The discrepancy between the inflation expectations of consumers and professional forecasters diminishes as the volume of information tied to the phrase “Bank of Russia” increases in media, social network posts, and online searches.

APPROACHES TO DEFINING CRITERIA AND INDICATORS FOR ASSESSING FINANCIALLY LITERATE BEHAVIOR OF THE POPULATION OF THE RUSSIAN FEDERATION

The article analyzes various approaches to the interpretation of the concepts of “criterion” and “indicator”; during the analysis, interpretations are derived that are taken as the basis for the development of criteria and indicators for assessing the financially literate behavior of Russian residents. The text provides an overview of studies assessing the financially literate behavior of residents of the Russian Federation, in particular the following studies were considered: “Financial literacy of Russians - 2023”, conducted by the National Agency for Financial Research (NAFI); “Study of the level of financial literacy” (stage 4), conducted by the FOM commissioned by the Bank of Russia and “Barometer of economic behavior of households in Russia”, conducted by specialists from the National Research University Higher School of Economics. Based on the analysis of the Strategy for Improving Financial Literacy and Forming a Financial Culture until 2030, in the context of the goals, objectives and expected results from its implementation and analysis of the criteria and indicators taken as a basis within the framework of the previously listed studies, criteria and indicators were proposed for assessing financially literate behavior Russians at three levels: the sphere of personal finance, the sphere of public finance and the sphere of financial security, including financial cybersecurity.

Statistical Analysis of Ineqality and Poverty with Under-Reporting Incomes of Russian Households

The subject of the article is the study of inequality and poverty, taking into account under-reporting household income. The purpose of the research was to estimate the under-reporting incomes of households and their impact on the smoothing income inequality and poverty based on representative data of the All-Russian Survey of Consumer Finance (2013, 2015, 2018, 2020 and 2022). It is relevant to analyze changes in inequality for individual population groups, as well as the contribution to inequality of individual sources of income, including those hidden from statistical observation. The novelty of the study is the obtained estimates of under-reporting household income, as well as the results of an analysis of their impact on smoothing income inequality and poverty based on the specified dataThe methodology included the use of econometric modeling according to the Pissarides – Weber approach, as well as decomposition of the Gini elasticity by income sources based on the Lerman – Yitzhaki algorithm. The results of estimations differ from those previously obtained according to the data of the Russia Longitudinal Monitoring Survey – Higher School of Economics. The resulting share of under- reporting income in the disposable resources of households averaged about 20% for 2013 to 2022 and decreased by 2,3% on average per year. Decomposition of the Gini index by income sources led to the conclusion that the main contribution to inequality was made by the non-poor population. Calculation of Gini income elasticities by income sources for poor and non-poor households (taking into account the imputed component of under-reporting income) revealed their differently directed impact on inequality. Wages and social transfers increase inequality among the poor and do not increase inequality among non-poor households. Estimating under-reporting income was higher for the group of poor households. At the same time, this component increased inequality in the post-crisis year 2015 and in the pandemic year 2020 for the group of non-poor households. The obtained results will provide important information to social policy makers, taking into account the influence of under-reporting income` on the poverty reduction and equalization of the standard of living of the Russian population

A feasible approach to projecting household demand for the digital ruble in Russia

We estimate a model of household use of alternative payment instruments (cash and bank cards) using a new dataset from a survey of Russian households. In our model, household preferences are determined by the perceived attributes of these instruments, and hence their choice regarding payment methods depends on the differences in these characteristics across these instruments. The results indicate that consumer choice is sensitive to the perceived characteristics at statistically significant level. We employ the estimated model to evaluate demand for central bank digital currency (CBDC), based on its expected design and consumer perceptions of it. We discuss several illustrative projections to demonstrate the application of the tool developed. The predicted use of CBDC varies considerably, depending on the perceived characteristics, although the projected use of CBDC in household transactions is limited under conservative assumptions: the projected share of digital rubles in the total number of transactions varies from 18 percent to 35 percent.

Visible Prices and Their Influence on Inflation Expectations of Rus-sian Households

Visible Prices and Their Influence on Inflation Expectations of Rus-sian Households

Types of Russian Households According to Domestic Labor Allocation

Types of Russian Households According to Domestic Labor Allocation

The Institute of Multi-Generational Family as a Reserve of Demographic Development in Russia

Negative demographic trends have actualized the search for Russia's demographic development reserves. The article defines the concept of “demographic development reserve” and highlights the authors' approach to studying multigenerational households as an institution providing potential reserves for marriage and family relations reinforcement. The purpose of the study is to identify the prevalence of multigenerational households in Russia, the nature of interaction between generations in families under the conditions of nuclearization and the role of generational solidarity as a demographic development reserve. The authors' conclusions are based on the data of All-Russian population censuses (1989, 2002, 2010 and 2020), as well as the results of author's sample studies (international sociological research “Family and Family Policy: A Generational Perspective”, All-Russian sociological research “Demographic well-being of Russia. National demographic report”, regional sociological research “The life of a multigenerational household in conditions of self-isolation”, All-Russian sociological research “Student family of Russia”). As a result of the structure of households’ analysis based on population census data were identified several trends. Firstly, increasing number of people living alone. Secondly, reduction in number of families consisting of several married couples. Thirdly, reduction in the number of children in the family along with an increase in the proportion of large families, etc. According to authors' sociological research the proportion of those who believe that young families (as well as children over 18 years old) should live separately from their parents is increasing. Most of parents help their children who have already created families and live separately. They help in raising grandchildren, paying for housing, buying things, providing financial assistance, etc. Children growing up and their parents to retiring change the situation. Adult children begin to provide assistance to their elderly parents (care during illness, household help, monetary assistance, etc.). It can be stated that solidarity (a stable relationship and the connection of several generations of a family) is an instrument for supporting the economic and social well–being of Russian families regardless of residence type (separately in one or different localities or jointly).

Economic affordability of medicines and its impact on households in Russia

The article studies the financial affordability of medicines for Russian families and its impact on the well-being of the population. Affordability of medicines depends on market conditions and government guarantees for free provision of medicines. Estimated drug consumption in the Russian Federation is based on microeconomic data from the nationwide Russia Longitudinal Monitoring Survey (RLMS-HSE) and pharmaceutical market data from DSM-Group. To assess the impact of pharmaceutical spending on poverty, disposable cash income per family member after deduction of medicines cost was calculated taking into account the poverty line. More than 2/3 of medicines in the Russian Federation are purchased by households on the commercial market. According to the study, every fifth household was at risk of poverty due to spending on medicines. The risk of poverty due to pharmaceutical costs is high in low-income families. Payments for medicines increase the number of families with out-of-pocket medical expenses by 5 times. Catastrophic spending on medicines in the Russian Federation reached its lowest level in 2021 according to the Universal Healthcare Coverage (UHC) criteria of the World Health Organization (WHO). There were no families that spent more than 100% of their income on medicines, and only 1.2% of families spent more than a quarter of their income. Every twentieth family refused to buy medicines at least once a year. In groups where the cost of medicines exceeded 10% of income, every tenth family refused to buy medicines. When the cost exceeded 25%, almost every fifth family refused to buy medicines. Thus, the rising prices and expenses for medicines are forcing Russian families to save on medicines and on their health. Recommendations for expanding the affordability of medicines for Russian families are given in the conclusion.

Оценка гетерогенных параметров динамики дохода и межвременных потребительских предпочтений

In modern economic literature, much attention is paid to estimates of the structural parameters of consumer choice and the process of income generation. Such estimations play an important role in determining the optimal insurance system, optimal monetary and fiscal policies, as well as in assessing the welfare of the population. In this paper, we estimate a set of parameters that determine the dynamics of household income and consumption in Russia. These parameters are heterogeneous at the household level; the paper uses the estimation method proposed in [Alan et al., 2018]. To estimate the parameters we use RLMS panel data for the period 2005–2019. The results indicate the presence of significant co-dependent heterogeneity of the parameters determining the dynamics of income and consumption. These results reflect the specifics of the consumer behavior of households in Russia. In particular, significant heterogeneity in the sensitivity of consumption to income shocks indicates a large variability of consumption insurance mechanisms available to households. In addition, there is significant heterogeneity in the dispersion of income shocks, which is critical in the context of the discussion of heterogeneous insurance instruments against income shocks (e.g., access to financial assets), as households with higher variation in unanticipated income change value these instruments more. This study is the first to estimate the full distribution of heterogeneous parameters of consumption and income dynamics using Russian data. Estimates of heterogeneous parameters are important for constructing theoretical models of consumer choice and analyzing optimal social policy. In particular, high values of the level of parameter heterogeneity indicate that standard models with a representative agent are not suitable for optimal policy choices.

Monetary incomes of the population as a reflection of the effectiveness of the socio-economic policy of the state

The last few years have become extremely difficult for the socioeconomic development of the country. In fact, despite the statistical growth of Incomes of the population, the commodity content is not growing, but rather decreasing. In this sense, we can agree with the conclusions of those experts who talk about stagnant phenomena in developing trends related to the monetary incomes of the population. The emerging wage disparity between the heads of state organizations in the field of education, healthcare, etc., which is also being noticed by a number of scientists and practitioners, requires an urgent and radical change in approaches to payroll in these state organizations. It should also be noted that the existing wage system was established as a result of post-reform reforms in 2005–2006. Almost 20 years have passed and the structure of, for example, the premium part of wages has significantly transformed not in the direction of its increase, but in the direction of reducing its volumes. This circumstance indicates that the bonuses given to the employees of a state organization for local regulation are not always really «fair» for everyone. Ultimately, this is reflected in a decrease in the incomes of a significant number of people employed in the public sector of the economy, their purchasing power and investment opportunities. This article presents the opinions of Russian scientists on the issues and problems of the growth of monetary incomes of the population, the formation and uneven distribution of monetary incomes and other important aspects of strengthening the financial position of the modern Russian household. Statistical data on the dynamics of monetary incomes of the population are presented.

Assessing the Level of Consumption by Children in Households

In the context of changing the demographic structure of the population (population aging) in order to determine the demand for goods and services and predict key socio-economic indexes, consumption age indexes are of practical interest for research. A feature of collecting information on the level of consumption is the conduct of surveys for the household as a whole, and not for a specific member of the household. At the same time, it should be noted that throughout the life cycle of a person, the level and structure of consumption differ. Methods for assessing the level of consumption in households of different generations are of greatest interest on the part of researchers. Current trends in developing and developed countries are characterized by a move away from multi-generational living. Thus, estimates of the level of consumption by children in households with parents are of practical interest.The purpose of the study. At present, there are no unequivocal recommendations on how to estimate the calculation of children’s consumption in households. At the same time, the available methods have been subjected to various criticisms from economists. It should be noted that most of the research on this topic was carried out at the end of the 20th century. At the same time, it is necessary to take into account possible cross-country features of consumption financing: the availability and development of medicine and education. If social services are available and provided at the expense of the state in a country, then the level of consumption by children will be lower. If the household finances the social sphere, the level of consumption by children in households will be higher. Thus, it is of practical interest to assess the level of consumption by children in Russian households.Materials and methods. Based on data from the Household Budget Survey (HBS) for 2020 conducted by Rosstat, households consisting of two adults and two adults with one child are selected. With the help of classical methods of statistical analysis, the construction of age profiles of consumption for each group of households is carried out. Based on the share of expenditures on food in the household and the scale effect of their consumption, the paper constructs age estimates for the redistribution of the level of consumption depending on the age of children. In addition, the sample size allows us to test the hypothesis about the age of birth of the child and the level of consumption.Results. The study made it possible to assess the differences in the level of consumption by children depending on the age at which a child was born. The average age of a child’s birth determines his/her further level of consumption throughout adulthood. Consumption is lowest among children who are born when parents are less than 26 years old. The obtained redistribution coefficients for ages under 15 are higher than in the estimates proposed by R. Lee, E. Mason, and Deaton, that confirms the possible consumption patterns of Russian households.Conclusion. This article draws two key conclusions. The age at which a child is born determines his/her level of future consumption: the birth of a child under the age of 24 indicates a relatively low level of consumption throughout their adulthood. The estimates obtained for the level of consumption by children depending on their age indicate higher consumption up to 14 years of age than in foreign methods that can be explained by the socio-economic characteristics of Russian households.

Transformation of Household Savings in the Russian Federation in Conditions of High Macroeconomic Risks in 2022

In the context of growing macroeconomic risks in 2022 caused by the financial and economic consequences of the global pandemic, the application of unprecedented sectoral and personal sanctions against the Russian Federation has led to the formation of new trends in the functioning of the finances of Russian households. The factors mentioned above change their income level, socio-economic motivation, consumer attitudes and, as a result, the volume and structure of citizens' savings. The study used the decile method of household income analysis in 2022. As a result of the study, the following trends were revealed: the incomes of households with the lowest incomes in 2022 practically did not fall due to the active social support of the state; the incomes of households with relatively high wages decreased by 2–3 %; during 2022, the value of organized savings decreased, and the value of unorganized savings on the contrary increased, especially in foreign currency; income analysis has shown that two thirds of households are actually unable to form savings, creates small insurance reserves.

Russian households’ finances during the pandemic

This paper is based on data of the Household Finance Survey carried out from 2013 to 2020. The analysis shows that household income growth was less affected by the pandemic than by the economic downturn in 2015. Consumer lending continued to expand in 2020, with a rising percentage of lower income borrowers. The increase in the share of highly indebted households and the overall growth of debt burden were moderate in 2020. An outstanding consumer loan did not have a significant negative effect on the self-assessment of a respondent’s financial situation on average. This negative effect was statistically significant among families with children and borrowers from vulnerable categories of workers.

Evolution of households and private farms of the population in Russia

Personal subsidiary farms are the most important sector of the agrarian economy, a factor of survival and ensuring food security for most people, providing more than half of the food in the country. The purpose of the research was to analyze the evolution of the formation of households and small farms of the population in Russia. The evolutionary and chronological development and formation of Russian household farmsteads and private farms of the population have been presented in the article. The main stages of the development of households of the population as the most important socio-economic institution and contribution to the agricultural sector of the economy are substantiated. We believe that the eff ective and successful development of private farms will signifi cantly reduce the time frame for the implementation of the food problem and the independence of the country. The income level of the rural population is 3 times lower than the national average. An increase in production volumes in subsidiary farms will help to reduce this gap and solve the country’s food security. Eff ective state support for smallscale farming and personal subsidiary farms is the most important basis for the eff ective development of agricultural production and food security of the country. The system of state support should be aimed at the development of livestock industries in private farms. In this regard, fi nancial resources are needed for the construction of livestock facilities and their equipment, feed and young animals are needed. Without the effective assistance of the state and the provision of funds, the development and diversification of private farms is not possible, farmers have nowhere to take or borrow them, and feed and young farm animals can be obtained in the public economy on mutually beneficial and agreed terms of cooperation.

On One Inverse Problem for the Kolmogorov–Fokker–Planck Equation

A mathematical description of the household economic behavior with the help of the Kolmogorov–Fokker–Planck equation is studied. This equation describes the dynamics of the household distribution density with respect to two characteristics: financial state and income. The agreement between statistical data and the solution of the Kolmogorov–Fokker–Planck equation is examined using statistical Rosstat data on the economic state of households in Russia. The problem is formalized as minimizing the deviation of the solution to the Kolmogorov–Fokker–Planck equation from the statistical data by managing household consumption. The extremal problem is solved numerically, and numerical results are presented.

Social Inequality of Russian Society in the Relationship of Investments, Household Inequality in Income, Expenditure and Consumption

The subject of the study is social inequality in Russian society, which determines the inequality of households in income, expenditure, consumption, ownership of financial assets and fulfillment of financial obligations, which requires the development of an effective state social policy to improve living standards, reduce inequality and poverty of Russian citizens. The objectives of the work are to identify the most socially vulnerable categories of the population on the basis of a sample survey of households and offer targeted social programs of state support. The study substantiates the need to strengthen the state's responsibility for the social inequality of Russian society and the adoption of economic measures to support socially vulnerable citizens. It is established that due to the lack of an adequate classification of the social hierarchy to date, the problem of social inequality and poverty is solved by supporting the most needy households in Russia. To do this, an analysis of the level and composition of available resources by socio-demographic type of households is carried out and a problematic category is identified, which currently includes large families. A gradation of households with financial difficulties in paying the payments set by them has been formed, mainly in terms of servicing consumer and mortgage loans. The measures proposed by the state to support households experiencing difficulties are given: an increase in the amount of social payments, primarily to families with children and wages for employees. The result of the social policy was a decrease in the number of poor Russian citizens. Conclusions are drawn about the need to reduce social inequality, which slows down economic growth and hinders the fight against poverty, by increasing the monetary incomes of the population, leading to a decrease in the number of citizens with incomes below the poverty line, as well as to improve citizens' personal assessment of their financial situation.

Financial Reserves of Households as a Factor in the Sustainable Development of Territories

Household finance is a new sub-branch of financial science, so the terminology has not yet been formed. Least developed approaches to understanding the financial reserves of households. The article presents the author’s understanding of the financial reserves of households, proposes their classification into perfect and imperfect reserves, discloses their regulatory, risk, accumulation and investment functions, assesses the possibility of their formation by Russian households in modern economic conditions. The scientific novelty of the study lies in the identification of the specific mixed nature of the financial reserves of the household as part of income and type of expense. The basis for further scientific and practical research of the financial reserves of households has been laid.

Market and home production earnings gaps in Russia

<abstract> <p>This study assesses the evolution of earnings across different groups of workers during Russia's 2000–2013 oil boom and amidst the 2014–2015 oil bust and a trade war. Unconditional quantile regressions and growth incidence curves are applied to nine household surveys for 2000–2016 to estimate earnings gaps across urban/rural, farming/non-farming and gender divides at various earnings quantiles. Gaps in pre-fiscal formal labor market earnings and informal non-market home production are assessed, distinguishing the roles of workers' endowments differentials and returns differentials in production markets. Earning gaps are found to be pervasive, with rural and some female-headed households receiving lower returns on their human capital in part because they lack employment opportunities. Rural Russian households face mobility barriers and lack decent employment opportunities, thus lacking incentives for skill investment. Rural households tend to be less educated and face low returns on their various marketable characteristics. Gender gaps were particularly high historically, particularly among lower quantile groups, but have been steadily falling over the past decade. Growth incidence curves reveal that the 2014 shocks affected particularly harshly the farming and urban households, both immediately and over the following years. We conclude that Russia should strengthen its rural assistance programs and lower the mobility and resettlement barriers to improve rural households' access to education and employment.</p> </abstract>

Social stratification of households in the context of the digital divide

To study issues of social deprivation and inequality, scientists explore factors, correlations and various indices and models. The deprivation indices are used in many countries to target interventions and policies to populations with the greatest needs. The aim of this research is to construct stratification scale of Russian households for the period of Covid-19 pandemic to study their social deprivation. The data source for household social deprivation is the Russian Longitudinal Monitoring Survey (RLMS-HSE). The results show that the digital divide of households in extreme poverty greatly increases their social exclusion and increases social deprivation. About 50% of extremely poor households live in rural areas. It confirms the ongoing income stratification of urban and rural residents. About 30% of households do not own a car. In the context of the restrictions of the self-isolation regime, this is a significant factor in social exclusion. Low incomes and material deprivation do not allow such households to change this situation. Even not all rich households have access to high-speed Internet. This may be due to the underdevelopment of high-speed Internet infrastructure.