Strengthening of the Power-property Tendencies and Forecasting their Impact on the Implementation of Interests of Households, Enterprises and the State

• Published in: Scientific Papers of the University of Pardubice. Series D, Faculty of Economics and Administration Faculty of Economics and Administration, 2020-01, Vol.28 (2)
• Main Authors: Smiesova, Viktoriia, Ivanova, Maryna, Faizova, Svitlana, Zolotukhina, Liliya, Karpenko, Roman
• Format: Article
• Language: English
• Subjects: Consumption; Economics; Government spending; Households
• ISSN: 1804-8048; 1211-555X; 1804-8048
• DOI: 10.46585/sp28020113

Inefficient functioning of institution of property and the institution of government creates conditions for evolving and affirming a phenomenon of "power-property" in the economic system. Power-property is defined as a phenomenon based on monopolization of the conditions for production, distribution, exchange and, as a consequence, restriction of consumption; it arises under the conditions of evolving such socio-economic relations, where the government and its dominance are based on a special position of economic agents in the economic and political hierarchy of society. Power-property exerts a negative impact on the implementation of interests of economic agents and, at the same time, public interests. However, in the scientific literature there has not been empirical assessment of the influence of power-property on the realization of the economic interests of households, enterprises, and society. The purpose of the article is to determine the nature of the dependency of a level of implementation of the economic interests of households, enterprises and society on the increased power-property manifestations in the economic system, and to forecast changes that occur as a result of this effect. For research the following scientific methods were used: mathematical statistics, economic and mathematical modelling, and regression analysis. These methods make it possible to establish a quantitative dependency of the objective (subjective) factors of the studied objects, to reveal the nature of the functional dependency between them, to determine and analyze potential changes in the values of any of the parameters of the studied object. The study provides a forecast of changes in the level of implementation of the interests of households, enterprises and society under the reinforced favouritism in the decisions of authorities and increased government’s monopolization of the conditions needed for production, distribution, exchange and, as a consequence, for consumption. It has been empirically proven that an increase in the power-property tendencies result in lower revenues and higher transaction costs for economic agents that are not connected with the government, in reduced government spending on public goods, and limited opportunities for economic agents to actually influence the production and distribution conditions.