Public Goods and State Services

Abstract

The article argues that state services are classified into two groups depending on the level of market mechanism use: public services and private services. These services have different characteristics: individual choice of consumption, type and quality of goods, financing, institutional regulation, decision-making subject, external effects, opportunity of effects control. The mechanism of public state services regulation is based on the influence on formal institutes, while the mechanism of private state services regulation is based on informal institutes. Joint mechanism of both types of state services provision includes the procedures of standartization and regulatory activity implying the provision of services by “one stop” principle and minimization of consumer - agent contacts. The optimization of services rendering process and their quality improvement are ensured by administrative regulations which establish strict standards of public service provided by the bodies of executive power and subordinate organizations The means of institutional regulation allow inclusion of market elements but on the condition of state control that ensures stimulation of public institutes. During the process of market institutes initialization in the sphere of state services rendering to government bodies, it is necessary to consider their dependence on marginal profits of one or another institute. In the long-term prospect those institutes got a foothold in the market that strengthen and encompass marginal effect for all individuals under the growth of individuals who observe the rules and restrictions. The activities organized by these institutes deserve positive response on behalf of the majority of individuals and, therefore there is no need in enforcement and violence in order to keep rules and restrictions. In the sphere of state and municipal services we can find the example of services provided in the scope of free contraction, in particular the growing profit of free contraction institute and market exchange depending on the increase of individuals.

Keywords

• economic goods
• public goods
• private goods
• state services
• institute
• quasimarkets