Ülo Ennuste Economics

papers and articles in wordpress

Memo 3.I 17

Memo 3.I 17 – Microsoft Translator of Origional* (Do not quote!)

President of Estonia Kersti Kaljulaid in the interview for newspaper POSTIMEES (PM) on 22.XII 16 said:

“it must be able to see these trends, how the problem of some kind, seeks to tilt public opinion to someone else. It is emerging as a separate branch of social science disciplines, strategic communications, their understanding of the techniques and their going to be dealing with. In Latvia, by the way, is Excellence Center (sic! – üe) created for analyses.”

To clear (a) that such centers must be coordinated to create in all of the Baltic countries (Poland, Inc.), and (b) the occupation of the Baltic States by the terrorist-caused by the NLi’s long-term socio-economic damages based on Science/informal** clarification of the coordinated field must fall within the competence of those centres (see also PM 30.XII p. 3 “Reinsalu wants to submit the Bill to Russia”.  While it has been argued that the assessment of the losses of Latvia as of 2016. the year was EUR 0.19 trillion in volume – which shows that the investment in human capital (especially the elite), and the social capital of the cultural endowment, and the casualties of national institutional have not been competently assess – perhaps these losses have not rated the level of nationalist) – (c) with the view of strategic communications is the scientific meaning of the thing “invoice submission” of strategic populist point far away – it is in particular in the Kremlin’s side in a new occupation/colonization of the event at the research-based strategy to be applied internationally, communication deterrent in the Baltic Countries, in order of sustainability-– this not the humiliation of compromise-factoid idée right on the way – but the Kremlin’s magnum national and the long-term consequences of the crimes against humanity of the approximate financial evaluation on the way: this particular ethnicities of the sustainability of sustainability erosion.

P.S.: (a) the informal/non-standard  evaluation also includes the assessment of damages in an undocumented what modern socio-cybernetics in macro-and micro/detail-free methods (Bayesian change such as Tongeren, Jan w. van and Ruud Picavet (2016) “Bayesian estimation approach in the will; integration of the compilation and analysis “In the EURO, Eurostat — the Review is a National Accounts and are accompanied by Indicators: a 7-49) allow (see** and Harrison, Glenn W., Mart´ınez-Correa, Jimmy, Swarthout, J.Todd, Ulm, Eric R., Scoring Rules for Subjective Probability Distributions. Journal of Economic Behavior and Organization: http://dx.doi.org/10.1016/j.jebo.2016.12.001) – including (b) estimates of the loss of human capital, human resources, national and official institutions, the destruction of the damages (including the destruction of families, such as fertile), a distortion in the national related losses, such as in connection with the real (informal/non-standard) distortions of genuin GDP volumes to market based positive activities, etc.), the distortion of the national demographic structures, Russification etc. etc. (for example, ** according to the assumptions of science-based methods to the show dozens of times in the larger national of the traditional and formal (based on official statistics) ratings: thus, not 100-200 billion euros in the Baltic-about the country – but – most likely 1-2 trillion euros – with the most so far higher than the estimate of damages Estonian PhD Kalev Kukk’s by is 0.15 trillion (the WHITE PAPER 2005) – which is so low in the sense that our national human assets and the destruction of social capital and other national institutions, the size of the losses was the long-term were not taken into account, formally financially – such as at the time was still internationally colonial-policies by analyzing the micro-economically the practice – or rather, into the mainstream of the macro-audiovisual sector, but was the great reluctance of the informal “amorphos” stochastic (one example of a stochastic approach in mechanism design – Ennuste, Ü., 1989. Some Models of Stochastic Planning Mechanisms. – The Finnish Economic Papers, 2, 2, 116-124. http://econpapers.repec.org/article/fepjournl/v_3a2_3ay_3a1989_3ai_3a2_3ap_3a116-124.htm , and http://www.taloustieteellinenyhdist – and –  another example in optimizing agents activite structure: Ennuste, Ü. 1969. Uncertainty, Information and Decomposition in the Planning of a Production System. – Economics of Planning, 9, 3, 258 – 266:

https://springerlink3.metapress.com/content/apt25151401mm553/resource-secured/?target=fulltext.pdf&sid=fvfx4a45bfltmq55fcc0xk55&sh=www.springerlink.com (NB maksab ca 40 eurot).

But tehse complicationsthat are now almost fully been exceeded also practically so according to Eurostat (see the “GDP and Beyond”) as well as by the OECD (see OECD (1998) Human Capital Investment: An International Comparison (Paris: Organization for Economic Cooperation and Development, the Centre for Educational Research and Innovation) – more in theory, see, e.g., here in 2006, Chou cited; Kissinger 2014, Fukuyama in 2014 and 2014 Piketty, etc – these monographs are a few seconds attainable with the help of Amazon.com downloaded – though often more expensive price than the paper) (c) of the national long-term economic losses evaluation should be borne in mind that, in the present case, is also largely irreversible loss of the population exodus because immigrants are significantly less positive activity (Eurostat data) – (d) but a number of international agencies and the financial estimates made by both human and sotsiaal capital are not used here, because, based on the standard-economy-GDP, narrowly to gain access to the base.


To be published in topical Article also in the area: the strategic communications which claims that should not be forgotten that the hostile camp is trying to in every way, and in many ways our national sustainability stability likelihood to undermine it and in particular in the social capital of the national poisoning  so also the institution of the Holy family of Russification than demolition and the heads of the Kremlin, and the distortion of the national knowledge structure with the appropriate faktoids, etc. – and – as the motto of the article says:


“War gives a sense that we can rise above our smallness and

divisiveness, “by Chris Hedges (2002):

also, it must not be forgotten!


Jennings, Colin; Santiago Sanchez-Pages (2016-17), “Social capital, the conflict and welfare” – the Journal of Development Economics 124 (2017) 157-167:0304-3878

(A) (B) S T R A C T (to disseminate information on the value of the institution of the national sotiaalkapitali assessment)

This paper analyzes the role of external conflict as a force that can create social capital. Host inter-group interactions can help to resolve intra-group social dilemmas but these potential gains must be weighed against the insecurity of the host relations with an out-of the group. Our central result is that the presence of an outside threat can induce higher levels of social capital, either because (a) the protective aspect of social capital comes into play and/or as a reallocation of investments from the private to the social capital. Given that social capital is potentially subject to free-riding, the threat, by promoting a greater level of social capital, can be welfare improving. When the threat is severe, the social capital and welfare are more likely to fall. This effect of an external threat is social capital is stronger in poor economies. These results can shed light on the sometimes contradicting empirical evidence on the relationship between conflict and social capital.

© 2016 Elsevier B.V. All rights reserved.

Available online on 01 October 2016.


Some of the references to this article

Chou, Y.K., 2006. Three simple models of social capital and economic growth. J. Socio-Econ. 35, 889-905.

Coleman, j., 1988. Social capital in the creation of human capital. Am. J. Sociol. 94,


Collier, P, 1999. On the economic consequences of the civil war. Oxford Econ. A Pap smear. 51 (1), 168-183.

De Luca, g., Verpoorten, M., by 2015. Civil war, social capital, and resilience in Uganda. Oxford Econ. A Pap smear. 67 (3), 661-686.

Deng, maybe lb, 2010. Social capital and civil war: the dinka communities in Sudan’s civil war. Afr. Affairs 109 (435), 231-250.

DiPasquale, d., Glaesar, e., 1999. Incentives and social capital: are homeowners better citizens? (J). Urban-Econ. 45 (2), 353-384.

Durlauf, s., Fafchamps, m., 2006. Social capital. In: Aghion, P., Durlauf, S. (Eds.),

Handbook of Economic Growth. North-Netherlands, Amsterdam.

Estrella-Lopez, o., 2003. Social Capital and Government in the Production of Public Goods. Universitat Autonoma de Barcelona, Department of Economics, Mimeo.

One of the earliest important to the article (see the introduction)

Chou, Yuan (K). (2006) “Three simple models of social capital and

economic growth “– The Journal of Socio-Economics 35 (2006) 889-912: DOI: 10.1016/j. socec. 2005.11.053


This paper proposes three models of social capital and growth that incorporate different perspectives on the concept of social capital and the empirical evidence gathered to date. In these models, the social capital impacts growth by assisting in the accumulation of human capital, by affecting financial development through its effects is the collective trust and social norms, and by facilitating networking between firms that result in the creation and diffusion of business and technological innovations. We solve for the optimal allocation of resources channelled into the building of social capital, to examine the models ‘ comparative statics and dynamics, and demonstrate how a tax and subsidy scheme may correct the resource under-allocation that results from the public good aspect of social capital creation. Observed, in the social capital across countries are explained by, in government policies and the possibility of multiple equilibria and social capital, the poverty of noughts and crosses.

© 2006 Published by Elsevier Inc.

JEL classification: The G20; I20; O31; O33; O41

Keywords: Economic growth; Social capital; Human capital; Financial development; Technological change

  1. Introduction

The concept of social capital, which refers to features of social organizations, such as networks, norms and trust, that facilitate coordination and cooperation for mutual benefit, has found rising albeit grudging set within the economics profession in recent years. Like other sociological concepts, its amorphous nature initially elicited deep skepticism from mainstream economists, who questioned the validity of classifying social interactions as a form of capital. …

Formalization example:

Y.K. Chou / The Journal of Socio-Economics 35 (2006) 889–912 895
… Mathematically, the model may be summarized as follows:
˙K= Y − C − δKK, (1)
˙H= E(uHH)1−ψSψ − δHH, (2)
˙S= P(uSH)1−σSσ − δSS, (3)
Y = AKα(uYH)1−α, (4)
where K is the aggregate physical capital stock, Y the aggregate output, the aggregate consumption, H the stock of human capital, S the stock of social capital, δK the physical capital depreciation rate, δH the human capital depreciation rate, and δS is the social capital depreciation rate. uH, uS and uY denote the share of the human capital stock that is allocated to accumulating new human
capital, building social capital, and producing goods, respectively. A, E and P are productivity parameters, while α, σ and ψ are elasticity parameters constrained to lie on the (0,1) interval.
While ψ measures the extent of social capital spillovers on human capital formation, σ measures the externalities in social capital building, that is the extent to which community-wide stocks of
social capital influences an individual’s social capital formation. The above equations describe in turn the evolution of the physical, human, and social capital stocks. For example, Eq. (1) states
that the change in the physical capital stock per unit time, ˙K , is equal to new investment (which is equal to savings, Y − C) minus depreciated old capital. Eq. (4) is the production function for the
consumption good. The model collapses to the Lucas (1988) model of human capital and growth if ψ = 0 since S and the ˙S equation then become irrelevant. …

Naevdal, Eric (2016) „Catastrophes and ex post shadow prices — How the value of the last fish in a lake is infinity and why we should not care (much)“ – Journal of Economic Behavior & Organization Volume 132, Part B, December 2016, Pages 153–160: http://dx.doi.org/10.1016/j.jebo.2016.04.021


Catastrophic risk is currently a hotly debated topic. This paper contributes to this debate by showing two results. First, it is shown that for a certain class of optimal control problems, the derivative of the value function with respect to the initial state may approach infinity as the state variable goes to zero, even when the first-order partial derivatives of the integrand and transition functions are finite. In the process, it is shown that standard phase diagrams used in optimal control theory contain more information than generally recognized and that the value function itself may be easily illustrated in these diagrams. Second, we show that even if the value function has an infinite derivative at some point, it is not correct to avoid this point in finite time at almost any cost. The results are illustrated in a simple linear-quadratic fisheries model and proven for a more general class of growth functions.

Axtle-Ortiz, Miguel Angel  (2013) „Perceiving the value of intangible assets in context“ – Journal of Business Research 66 (2013) 417–424: doi:10.1016/j.jbusres.2012.04.008



Intangible assets valuation

Intellectual capital




Perceptions of the intangible assets of worldwide organizations vary according to context. The sample

population in the study discussed in this paper includes eight geographical regions, 16 types of industries,

two types of operations, and three organization sizes. The study demonstrates that geographical region,

industry sector and organization size are statistically significant factors that influence the weighting of

intangible assets. This paper identifies the principal components that shape intellectual capital and the way

it is characterized.

© 2012 Published by Elsevier Inc.

Some Refrerences

Axtle Ortiz, M. A. (2009). Analysis and valuation of intellectual capital according to its context. Journal of Intellectual Capital, Volume 10, No. 4, . : Emerald Publishing.

Brooking, A. (1996). Intellectual capital: Core asset for the third millennium enterprise. Thomson International Business Press, New York, NY.

Chaminade, C., & Johanson, U. (2003). 2003. Can guidelines for intellectual capital management and reporting be considered without addressing cultural differences?. Journal of Intellectual Capital, Vol. 4, Iss. 4. (pp. 528) : Bradford.

Flamholtz, E. (1971). A model for human resource valuation: a stochastic process with service rewards. The Accounting Review, 46, 253–267 [Apr.].

Flamholtz, E. (1972). Toward a theory of human resource value in formal organizations. The Accounting Review, 47, 666–678 [Oct.].

Flamholtz, E. (1973). Human Resource Accounting: Measuring Positional Replacement Cost. Human Resource Measurement. 1st. 8-16. In Edvinsson, L.and Malone, M., (1997). Intellectual capital, realizing your company’s true value by finding its hidden brainpower. NY, EUA: Harper Collins.

Lev, B. (1999). Seeing is believing. A better approach to estimating knowledge capital. Boston,MA: CFO Magazine, CFO Publishing Corporation February.

Lev, B., & Schwartz, A. (1971). On the use of the economic concept of human capital in financial statements. The Accounting Review(52), 3–5 [March].

Rodov, I., & Leliaert, P. (2002). FiMIAM: Financial method of intangible assets measurement. Journal of Intellectual Capital, 3(3), 323–336.

Stewart, T. (1998). Intellectual capital: The new wealth of organizations. Currency/Doubleday, NY, USA.



NB: Terroristic occupation/colonization may be adequately  mathematically modelled as national catastrophe (üe).


*) https://yloennuste.wordpress.com/2016/12/30/memo-30-xii-16/

**) https://uloennuste.wordpress.com/2016/11/18/do-not-quote-18-xi-16/


Additional Quotations

Memo to 27.16 XI: XI, of the European Parliament of 23 October 16 Report A8-2016-0317

This paragraph 6 requires the EU/28-s here, particularly from third countries targeted for terrorist propaganda and the improvement of preventive action against it, especially on the Web:


The White Book (2005): Losses Inflicted on the Estonian Nation by Occupation Regimes in 1940-1991 “(2005), the State Committee on the Investigation into the Repression Policy of Occupation, Tallinn, Estonia: the Estonian Encyclopaedia Publishers: 171:




Toomse, Rene (2015) in Defending Estonia in peace and war. Retaining a small state near the aggressive neighbor by utilizing unconventional strategies; (supervisor: Jyrki Käkönen); School of Governance, Law and Society, Tallinn University, Tallinn, Estonia: 245lk:




Schmid-Schmidsfelden, Hubertus: Kristina Potapova (2016) The Bear in Sheep’s Clothing: Russia’s Government-Funded Organisations. In the EU. Wilfried Martens, Centre for European Studies:


NB! Popular overview of the concept of social capital in the relatively popular fresh:    https://en.wikipedia.org/wiki/Social_capital:



January 4, 2017 - Posted by | Uncategorized

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