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Regional Economics: Theory and Practice
 

Algorithm development, standardization and process modeling to reduce the transaction costs of regional public services users

Vol. 15, Iss. 5, MAY 2017

PDF  Article PDF Version

Received: 2 November 2016

Received in revised form: 29 November 2016

Accepted: 20 December 2016

Available online: 15 May 2017

Subject Heading: ECONOMIC-MATHEMATICAL MODELING

JEL Classification: K23

Pages: 937-952

https://doi.org/10.24891/re.15.5.937

Molotkov Yu.I. Siberian Institute of Management, Branch of Russian Presidential Academy of National Economy and Public Administration, Novosibirsk, Russian Federation
molotkov@sapa.nsk.su

Burovtsev V.V. Siberian Transport University, Novosibirsk, Russian Federation
burovtsevvv@mail.ru

Subject The article explores if there are possibilities to develop algorithms, standardize, and model processes to reduce transaction costs of public services users at the regional level. The public services sector is the object of the study.
Objectives The paper aims to develop an effective legal and institutional synergy mechanism to counteract the growth of administrative barriers to public services, by reducing transaction costs.
Methods Our conceptual approach is based on the principles of a new institutional theory (institutional analysis) and the synergy paradigm (the efficiency of interaction of regulators). As well, for the study, we used a structural systems analysis, methods of change management, optimization of process management, economic-mathematical methods of optimization, expert assessments, compensation, analysis of existing normative legal acts, and the functional modeling methodology.
Results The article presents a new legal and institutional synergy mechanism to reduce transaction costs of public services users. It proves that the level of transaction costs in the system of public services directly characterizes the extent of administrative barriers to business of public services users.
Conclusions The study shows the opportunities and economic effects of reduction of transaction costs due to the use of algorithms, standardization, and modeling of administrative procedures on public services under public administration. Using the developed institutional synergy mechanism can greatly enhance the effectiveness of measures for State regulation of the market economy. The proposed approaches to reduce the transaction costs can be used in various areas of public services.

Keywords: public services, transaction costs, modeling, algorithm presentation, State regulation

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