Institutional efficiency and processes of institutional changes (As seen by the Russian academic tradition)

Abstract

Research in changes to the institutional environment has set a scientific problem of a balance between consequences from such changes and a need to sort out differences across imperfect standards and regulations. Approaches to solve the abovementioned issue are not the same. In a review of scientific papers, we present an original view of scientists, who are committed to the Russian academic tradition. To clarify this, the paper summarizes theories on the efficiency of economic agents and institutions. The paper also demonstrates ambiguity in approaches to a definition of efficiency conditions. It justifies factors of an increase or a decrease in transaction costs in a horizontal and vertical institutional expansion, as well as a change to the transformational function. In the course of the research, existing saturation and sparsity as features of the institutional environment are discussed.