TRANSACTION COSTS IN THE STATE REGULATION SYSTEM
Abstract
Transaction costs in the public sector are an understudied topic that can improve the understanding of governance processes within the public authorities and provide criteria for evaluating their effectiveness. The purpose of this study is to outline a certain theoretical framework, in particular the essence and types of transaction costs in the public sector. It is done in order to provide a basis for later empirical research. The author uses the analogy method of transferring existing theoretical findings from the context of the firm to the context of public authorities; the synthesis method in the process of transforming various theoretical concepts that consider the relationship of the state and transaction costs into three basic models of the perception of public authorities; the method of analysis in the process of identifying the various structural components of the transaction costs of public authorities. The results of the investigation allow us to distinguish state and municipal transaction costs within the concept of public transaction costs. All of them contain political, economic and institutional transaction costs. It is proposed to consider internal (constitutive transaction costs and costs of exploitation of the public system) and external (regulatory) transaction costs within the framework of institutional transaction costs. The well-known classifications of transaction costs, which were mainly proposed in relation to the private sector, but can be used in other areas, in particular in relation to public power, are considered: ex ante and ex post costs; explicit and implicit transaction costs; measurable and unmeasurable. It is also suggested to introduce the concepts of single and integral transaction costs. This section provides a new approach to the process of evaluating transaction costs, not only for the public sector, but also for the private sector. The classification of public transaction costs proposed in this study is the basis for later discussions of this topic in academic circles and in the educational process, as well as the basis for quantitative and qualitative evaluation of public transaction costs.
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