Model of Behavior of the Economic Person in the Context of Public Effectiveness

Abstract

One of the factors determining the steady progressive growth of the state is the coordination of the tasks of the country's economic and social development with the individual goals facing its citizens. In accordance with the traditional view, an individual, when solving economic problems, chooses the option of actions that brings him the greatest benefit. However, such an approach does not take into account the numerous factors (from institutional to psychological) that affect the real choice. The author proposes to expand the classical view, as well as to analyze additional factors influencing the economic behavior of an individual, which allow directing the individual’s activity to a socially useful channel. For this purpose, a model of behavior aimed at socio-economic efficiency has been proposed, which provides for a reduction in transaction costs (in broad meaning), and is aimed at increasing public performance, allowing to shift the focus from economic efficiency to social cost-effectiveness. In the model under consideration attention is paid to the impact of the social ambiance, institutional and socio-economic environment on the behavior of an individual. Such an environment is capable of directing decisions made by an individual not only to increase consumption and maximize economic benefits, but also to self-restraint and the desire for self-identification, as well as the coordination of individual behavior with the requirements and norms of society. It is noted that the proposed model of economic behavior sets the streamline of actions, focused on the choice of solutions that take into account the possibility of personal economic success in the context of public efficiency, reducing the outlays of society, reasonable consumption norms and the burden on the environment. The model is aimed at increasing collective efficiency and gradually solving social and economic problems of the country on the whole at the expense of the mentioned tools.