Becker's Economic Theory in the Genesis of the Institute of Economic Power in Modern Ukraine

The article analyzes problems of power in general and economic power in particular, appeared on the background of extreme conditions of the development of social relations in modern Ukraine, caused by radical transformation of social and state institutions. The author tried to consider the distribution of power authorities between main influence groups under conditions of globalization from the point of view of G.S. Becker's theory, who stated that “… the economic approach provides maximizing behavior in more expressed form and wider approach, than other ones…” According to the author, the use of the economic approach at analyzing the genesis of the power institute in modern Ukraine is universal, because it is based on main economic paradigms of human behavior – acceptable, wholesale, imputed, shade and so on prices; repeated and reiterated, important and insignificant decisions; emotionally loaded and neutral aims; behavior of nouveaux riches, ill, medics, businessmen and workers, professors and students, law-abiding citizens and criminals. The application area of the economic approach, understood in such a way, is so wide that it includes the subject of economic science. The importance of studying power problems grows, when the researcher addresses to the concrete society, in which on the background on general processes of globalization, build-up of tendencies of openness of national economies, typical for the whole European civilization, radical changes of social and state institutions take place, and as a result extreme conditions of social development and human existence appear. Ukraine found itself in such conditions in last years, so it causes a necessity to consider possibilities of the effective distribution of power between main economic agents under conditions of global economy from new positions. Problems of the Ukrainian state also actualize the analysis of the mechanism of economic power to the great extent, in particular, in concerns the economic decay, complete dependence of Ukraine on external markets and influences, collapse of the “two-vector” policy, declared by the Ukrainian authorities during the years of independence – this all gives grounds for rethinking the role of power in the open economic system, which part is the native economy

Economic Theory, Economic Reality and Economic Policy

This paper analyzes the opposition between the «liberals» and «statists» in the Russian political and economic thought. It demonstrates that the economic liberalization is an absolute prerequisite for the transition to sustainable socio-economic development. Such development must rely on investment activities of the state, which in the current circumstances is a necessary but not sufficient measure for reversing the negative trends. The negative developments can be prevented only through implementation, along with the institutional changes in the economic area that form a strata of economically independent entrepreneurs-innovators, of no less profound transformation in political institutions aimed at democratization of public life

Economic Crisis and Economic Theory

Two dynamic general equilibrium economies compete in explain?ing the United States'interwar business cycles. Despite the demand driven contender's slight advantages, the results remain too close to call a clear winner.Great Depression, Dynamic General Equilibrium.

Economic Crisis and Economic Theory

Two dynamic general equilibrium economies compete in explaining the United States' interwar business cycles. Despite the demand driven contender's slight advantages, the results remain too close to call a clear winner.Great Depression, dynamic general equilibrium

Viability Theory and Economic Modeling

A brief introduction into the theory of differential inclusions, viability theory and selections of set valued mappings is presented. As an application the implicit scheme of the Leontief dynamic input-output model is considered

Rail Privatisation: The Economic Theory

The purpose of this paper is to examine the relevance of economic theory to the rail privatisation proposals contained in the Railways Act 1993. After a review of the latest rail privatisation literature four major themes emerged: (1) Contestability and Barriers to Entry. (2) Franchising. (3) Vertical Integration. (4) Horizontal Integration. Following a short review of the rail privatisation proposals the paper presents each theme in the context of the proposals. In conclusion, we highlight a number of future issues which will require monitoring and research in the future. In particular, we identify a number of hypotheses, put forward by both those in favour and against the Government's proposals, that should be tested

Privatization in Economic Theory

In reality privatization has never occurred according to the handbook rules of ordinary market transactions. Not even in advanced market economies can privatization transactions be described by the Walrasian or Arrowian, or Leontiefian equilibrium models, or by the equilibrium models of the game theory. In these economies transactions of privatization take place in a fairly organic way which means that those are driven by the dominance of private property rights and in a market economy. But despite this fact Western privatization also some peculiar features as compared to ordinary company takeovers, since the state as the seller may pursue non economic goals. Changes in the dominant form of property change positions and status of many individuals and groups in the society. Thats why privatization can even less be explained by ordinary market mechanisms in transition countries where privatizing state-owned property have happened in a mass scale and where markets and private property rights weren't established at the time process of privatization began. In this paper Ill discuss and analyze the phenomenon of privatization in context of different economic theories, arguing that empirical results go in favor of the public choice theory (Buchanan, 1978), theory of economic constitution (Brennan and Buchanan, 1985), (Buchanan and Tullock, 1989), and theory of collective action (Olson, 1982). These theories argues that transition from one economic system into another, for example transition from collectivistic, socialistic system into capitalism and free market economy with dominant private property, will not happen through isolated changes of only few economic institutions, no matter how deep that changes would be. In other words privatization can not give results if it's not followed by comprehensive change of economic system, because privatized companied wouldn't be able to operate in old environment.Private property rights, Privatization, Transaction, Institutions, Transition

The Suitability Rule and Economic Theory

The published rules of both the National Association of Securities Dealers (NASD) and the Securities and Exchange Commission (SEC) provide that a broker or dealer in the securities market may recommend the purchase of a security only when there is a reasonable basis for believing that the security is suitable for the customer