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BUSINESS INFORM №10-2014

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26

Section: Economic and Mathematical Modeling
UDC 347.441.14:338.43
Shibaeva N. V.
Readiness of Economic Entities to Abide by the Rules as Component of the Efficiency of Regulatory Policy (p. 164 - 168)

The article is aimed at one of the components of the efficiency of regulatory policy: readiness of the economic entities operating in the agricultural economic area to comply with the requirements of the regulatory acts. In the article the existing approaches to economic analysis of the readiness to abide by the rules, required by the regulatory policy, are studied and compared. This analysis allows to determine how the existing approaches explain the behavior of the entities of the agricultural economic area and also to create the theoretical background for the possible empirical analysis of the efficiency of regulatory actions by the State. In the article is concluded that the neoclassical theory in explaining the behavior of the economic actors focuses on the balance of profit – expenses. Given some limitations, this approach should include data variables in the model, which would explain the observance of requirements of the regulatory policy by the actors. However, there is also a need to address the social and psychological factors, personal motivations, social reciprocity and public pressure. Though the role of the neoclassical economic variables is well understandable, there are some difficulties with taking into account the uneconomical variables. However, it seems appropriate to add the following variables to the model: variable of the risk-free behavior in the case of potential profit and the riskful behavior in the case of potential losses; variables reflecting the influence of the psychological and social factors. A practical solution of building the model presupposes the availability of a few options, but the choice of the concrete solution of this particular issue must be the subject of a further independent research.
Keywords: regulatory policy, regulatory act, agricultural economic area, neoclassical theory, prospects theory
Formulae: 4. Bibl.: 15.

Shibaeva Natalya V. – Candidate of Sciences (Economics), Associate Professor, Department of Economics and Marketing, Kharkiv P. Vasylenko National Technical University of Agriculture (44 Alchevskykh Str., Kharkiv, 61002, Ukraine)
Email: shibaevanv@list.ru

Article is written in Ukrainan
Downloads/views: 117

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Reference to this article:
Shibaeva, Natalya V. (2014) “Readiness of Economic Entities to Abide by the Rules as Component of the Efficiency of Regulatory Policy.” Business Inform 10:164–168.


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