Аuthors:

Oleg S. Sukharev, Dr. Sc. (Econ.), Professor, Chief Researcher. Institute of Economics of the Russian Academy of Sciences

Abstract:

The study forms a theoretical-methodological approach in management reduced to institutional adjustments taken as a tool for affecting economic objects in order to ensure their proper functioning. Institutional adjustments refers to targeted changes in regulations carried out by the subject of management in numerous alternative ways. The general focus of institutional adjustments can be limited to ensuring institutional well-being as one of the crucial functions of economic development, which is considered within achieving the greatest efficiency and the least functional disorder of institutions. The paper aims to extend the theoretical level of analysis by including institutional adjustments as a means of management in the set of methods for regulating the economy. The theory of economic policy and institutional theory applicable at the macro and other levels of management constitute the research methodology. The methods of comparative and taxonomic analysis, formal mathematical generalizations and functional analysis were used. The author develops a typology of institutional adjustments and reveals their substance according to the most important parameters of their identification. We also identify the models of functioning of the management object (institution) and describe the relevant modes of institutional adjustments, which links management impulses with the object’s state and its development objectives. Within the “efficiency – dysfunction” coordinates system, the characteristics of institutional adjustments are found. The study concludes that it is necessary to ensure institutional well-being that provides for the greatest efficiency of the institutions operating and the least disruption of their functions. The paper presents a formal condition of solving this task and positions it as an additional criterion in the contemporary theory of economic policy.

Keywords:

management; institutions; institutional adjustments; cumulating; dysfunction; efficiency; institutional well-being.

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