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Issue № 32. June 2012

Budgetary Institutions in the New Institutional Theory

Igor Y. Arlashkin

Graduate student, School of Public Administration, Lomonosov Moscow State University.
E-mail:
igor-arlashkin@mail.ru

A public sector reform leads to a fundamental change in the relations between a founder and a budgetary institution. The article considers this change from the point of view of the new institutional theory. The author concludes that limits of a budgetary institution as a firm become more defined, the nature of a firm contract changes, transaction expenses of a founder and an institution are essentially increased. Taking into account these conclusions the possibility of reform is evaluated and the option between different institutions’ types is considered.

Keywords

budgetary institution, public assignment, new institutional theory.

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