BUSINESS INFORM №6-2016

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Section: Economic Theory
UDC 330.1
Abramov F. V.
Criteria for the Appropriateness of Reforming Both the Conditionally and the Unconditionally Inefficient Formal Rules (p. 8 - 12)
The article is aimed at identifying criteria for the appropriateness of reforming the inefficient formal rules and determining directions for improving their efficiency. Criteria for the appropriateness of reforming both the conditionally and the unconditionally inefficient formal rules have been allocated. It is proved that in case of unconditionally inefficient formal rules, in accordance with the proposed criteria for the appropriateness of reforming, the only type of inefficient formal rules, reforming which will be inappropriate, are the ethically ineffective formal rules in the narrow sense. In the cases where reforming the unconditionally inefficient formal rules is appropriate, methods to improve their efficiency have been proposed. It has been shown that in the case of conditionally inefficient formal rules, which are characterized by both the target and the transaction inefficiency, level of transaction costs on removing the external inefficiency factors is the sole criterion for the appropriateness of reforming, and measures to improve the efficiency of this group of formal rules must consist in removing the external inefficiency factors of the related conditionally inefficient formal rules.
Keywords: transaction costs, bureaucratic procedures, criteria of efficiency
Bibl.: 8.

Abramov Fedir V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of General Economic Theory, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

Article is written in Ukrainian
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Reference to this article:
Abramov, Fedir V. (2016) “Criteria for the Appropriateness of Reforming Both the Conditionally and the Unconditionally Inefficient Formal Rules.” Business Inform 6:8–12.

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