Modeling of ineffective Norms of economic Agents’ Behavior in Terms of Relationship of «Investor – Government» type

Abstract

This paper considers relationship between investors and government in frame of their activity in some economic system. Author analyzed the reasons and proposed model of decisions (behavior) of investors, depending on the parameters of economic environment in which they act. Author used the model to estimate the following: 1) the favorable conditions for agents of different groups for shifting into the economy with better investment climate; 2) the agents’ attitude towards appearance in economy of another agents’; 3) the agents’ will to invest into improvement of economic climate environment in which they act; 4) the government’s will to invest into improvement of national economy. This study suggests that the government, contrary to common belief, usually shows no real interest in maintaining and improving the economic climate in the country. Even if the economic climate is relatively unfavorable, can select tax parameters under which such a situation will satisfy not only government but also investors. Author formal argued that successive realization of natural behavioral motives of economic agents in analyzed economic system finally leads to «closure» of economics and to (establishing) of incomplete market.

Keywords

• contractors’ relationship
• ineffective norms of behavior
• economic climate
• incomplete market
• «market fallacy»