Ebook: Conceptual Challenges of Observability for Transaction Sector in Economy

Научная статья. Mediterranean Journal of Social Sciences, Vol. 6, No. 4, S3 (August 2015): pp. 391-402Abstract. Stimuli for the sustainable economic development are mainly kept owing to a balanced sectoral structure. An ideal ratio between the transformation (production) and transaction components helps to smooth shocks from crises of institutional reforms. A nature of institutional reforms has led to a conclusion of an evolutionary expansion both in terms of a number of institutions themselves (horizontal supplement), and the complexity in elaborating rules and regulations for the proper behaviour (vertical supplement). These and other causes logically lead to strengthening in the transaction sector. In terms of a missing conventional agreement on an evaluation of the transaction sector in economy, the paper has presented a review and the authors have systematized some typical errors and inconsistencies in approaches. In opposition to the "cost-based" evaluation method by J. Wallis and D. North, the authors have presented an available alternative method to measure the value of the transaction sector using "cost" parameters. The research has shown the efficiency of the used "cost" approach to the evaluation that eliminates significant errors in the recalculation of the volume of the transaction sector in the economy.
Keywords: Transaction costs, transaction sector, institutional reforms, sectoral structure of economyСontents:
Introduction
Review of Literature
Concept of transaction costs
Concept of transaction sector
Methodology
Cost-based and cost approaches
Evaluation of transaction sector by Wallis & North
Factors of change to sectoral structure
Discussion
Contradictions and errors in estimates of transaction sector in economy
Reminiscence of Wallis & North's model
Conclusion