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  • Monitoring of transaction costs in the interaction between the state, business, and citizens, emerging during complex public services, and development of recommendations on their reduction

Monitoring of transaction costs in the interaction between the state, business, and citizens, emerging during complex public services, and development of recommendations on their reduction

2011
Department: International Laboratory for Institutional Analysis of Economic Reforms (LIA)
The project has been carried out as part of the HSE Program of Fundamental Studies.

The present study emphasises the evaluation of transaction costs emerging in the interaction between the state and economic agents (firms and individuals) applying for various services. Special attention is given to the factors that enable the state to reduce certain types of costs. For example, administrative procedures are aimed at reducing informational costs for firms and individuals, thus instigating their activity and improving investment prospects of the Russian economy. Information available online on the web-sites of state agencies should have a similar effect. It is shown in the study that costs are key to law enforcement.
The research objective is to assess the possibility of measuring transaction costs emerging between people and the state, or business and the state, and to identify the factors that affect the size of such costs.

Research goals are:

  • to analyse the existing volume of research in the sphere of state information support for business and individuals’ activities;
  • to assess the information resource of administrative procedures in terms of reducing transaction costs;
  • to measure the costs using the case of interaction between individuals and the state in the sphere of property registration concerning suburban estates (dachas);
  • to evaluate the transparency of information provided on the official web-sites of state agencies, especially on the web-sites of regional government orders.

Quantitative research is based on the following data:

  • Administrative Procedures Implementation Monitoring,
  • World Development Indicators by the World Bank,
  • Open-source evaluations of the accessibility of information on the web-sites of various state agencies,
  • Public-opinion poll regarding potential privatisation of suburban estates.

 

Results of the project:

  • content analysis of the web-sites of state agencies has helped evaluate the accessibility of information on the web-sites of various state agencies; it has shown that most of the web-sites concerning selected public services do provide the citizens with necessary information on the services in question;
  • a model of interaction between the public and state officials of different ranks has been developed to show that the dissemination of information helps reduce costs for the citizens interacting with the state;
  • according to the results of the poll, both temporal and financial costs related to suburban estates property registration are relatively high. For example, every other respondent spent over 6 months in order to collect all the necessary documents. Total financial costs for property registration amounted to at least 20,000 rubles for 50% of the respondents. However, though the costs are high, they do not become prohibitive, and most of the repondents (77% of the combined sample) had registered their property rights for suburban estates by the time of the survey.

Scope of use: report results are used as part of the courses taught by the Institute’s faculty; some of the conclusions can be used in the evaluation of the capacity of procedural rules and administrative reform capabilities.
No foreign partners were involved in the study.