ECONOMIC EFFECTIVENESS CONCEPT IN THE CONTEXT OF SCIENTIFIC SCHOOLS EVOLUTION
Keywords:
Key words, economic effectiveness, limited resources, innovation and technological growth, activity results, economics competitiveness.Abstract
Lymar V.V. ECONOMIC EFFECTIVENESS CONCEPT IN THE CONTEXT OF SCIENTIFIC SCHOOLS EVOLUTION
Purpose. The purpose of an investigation is analysis and comparison of views of representatives of different scientific schools and modern scientists on the economic effectiveness concept.
Methodology of research. During the investigation there were used such scientific methods: analysis (investigation of scientific schools theories); comparison (studying views of classicists of economic theory); concretization (definition of concrete features of approaches to understanding economic effectiveness concept from the point of view of modern scientists) and analogy (comparison of classicists’ views and modern scientists on the economic effectiveness definition).
Findings. It is revealed that the effectiveness definition evolution has the long history. It is established that for the first time this effectiveness definition in economic theory appeared in works of the classical theory representative V. Pareto. It is determined that the model of economic efficiency suggested by V. Pareto means that society’s welfare reaches maximum and resources distribution becomes optimal if any change of this distribution does not make worse condition even one of the subjects of economic system.
A comparative analysis is carried out, which established that the classical economic theory and its representatives A. Smith and D. Ricardo do not study effectiveness concept concerning economics. A. Smith defined economic laws as objective reality, D. Ricardo defined dependence of products costs from labor (labor cost theory) and defined the main task for the classical political economy: to define laws which manage profits distribution.
K. Menger, one of the marginalism founders, in the 1970th worked out and gave prove the concept of public good and subjective value where he presented a product not as a thing with physical features but as a bearer of features that are useful for a consumer.
It is justified that economic effectiveness is a result of an economic system which shows the ratio of useful final results of its operation to spent resources. On the micro-level it is the ratio of produced goods (volume of selling) to costs (labor, capital). On the macro-level the economic effectiveness is defined as the ratio of GDP to costs (labor, capital, land).
Originality of the article is the definition of approaches to studying the aspects of economic effectiveness concept.
Practical value. Results got during the investigation, enrich available base of modern economic theory.
Key words: economic effectiveness; limited resources; innovation and technological growth; activity results; economics competitiveness.
References
Osipova, E.V. (1979), Sotsiologicheskaya sistema Vilfredo Pareto [Sociological system of Vilfredo Pareto], Moskow, Russia, 309 p.
Smith, A. (1962), Issledovanie o prirode I prichinah bogatstva narodov [Investigation of the nature and causes of nations welfare], 677 p.
Ricardo, D. (2001), “On the Principles of the Political Economy and Taxation”, Ontario, 333 p.
Menger, K., Böhm Ritter von Bawerk, and E., Wiezer, F. (1992), Avstriyskaya shkola v politicheskoy ekonomii [Austrian school in political economics], Moscow, Russia, 493 p.
Veblen, T. (1984), Teoriya prazdnogo klassa [Theory of an inactive class], Moskow, Russia, 367 p.
Dudka, V. Assessment of equilibrium and effectiveness of national economics, available at: https://cyberleninka.ru/article/v/otsenka-ravnovesnosti-i-effektivnosti-natsionalnoy-ekonomiki (access date January 19, 2018).
Friedman, M. (1997), “John Maynard Keynes”, Federal Reserve Bank of Richmond Economic Quarterly, Vol. 83, no. 2, pp. 34-45.
Leontiev, V. (1997), Predislovie. Mezhotraslevaya ekonomika [Preface. Inter-branch economics], Moscow, Russia, 480 p.
Starikov, N.I. and Shcherbakov, A.V. (2002), Dinamicheskaya model povedeniya obshchestva. Sinergeticheskii podhod k ekonomike. Novoe v sinergetike: vzglyad v tretie tysyzcheletie [Dynamic model of the society behavior. Synergetic approach to the economics. New in synergy: view to the third millennium], Moscow, Russia, 291 p.
Cyert, R. and March, J. (1963), “A Behavioral Theory of the Firm”. New Jersey, 254 p.
Kondrashova, V.K. and Isaeva, O.G. (2000), Ekonomika poligraficheskogo predpriyatiya [Economics of polygraphic enterprise], Moskow, Russia, 320 p.
Merzlikina, E.M. (2008), Metodologiya otsenki effektivnosti deyatelnosti organizatsii [Methodology of an assessment of enterprise operation effectiveness], Moskow, Russia, 31 p.
Volchik, V.V. Effectiveness of market process and evolution of institutes, available at: http://www.libertarium.ru/libertarium/88725/ (access date January 5, 2018).
Bizness – slovar [Business dictionary], available at:www.businessvoc.ru (access date January 14, 2018).
Raizberg, B.A. (2004), Sovremennyi ekonomicheskii slovar [Modern economic dictionary], Moskow, Russia, 479 p.
Encyclopedic fund, URL: www.russika.ru (access date January 10, 2018).
Modern encyclopedia, URL: dic.academic.ru (access date January 14, 2018).
Limareva, Yu.A. and Limarev, P.V. (2014), Evolution of effectiveness concept in economics]. URL: http://7universum.com/ru/economy/archive/item/1169 (access date January 11, 2018).
Drucker, P. (2007), Praktika menedzhmenta [Management practice], Moskow, Russia, 400 p.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
