Financial and social efficiency of the changes in accordance with the construction of the "Edgeworth box"

Abstract

This article is devoted to the study of the financial and social effectiveness of the changes in accordance with «the Edgeworth box» model. The Edgeworth box is one of the tools of microeconomic science, allowing to determine the effectiveness of the distribution of benefits between participating individuals in the study. The scientific novelty of the article is the author's approach to the territorial study of financial and social efficiency based on the application of «the Edgeworth box». Starting the study of the relationship between the criteria for change management, it is necessary to establish the existence of a direct relationship between the presented indicators. The coefficients of Kendal and Fechner serve as convenient tools for evaluating the correlation interrelation. The territorial model of the effectiveness of «the Edgeworth’s box» includes four subjective elements: territory (municipal entity), population, financial and social changes. The determination of the effectiveness of social and financial changes is based on the distribution efficiency curve and the initial stock. The construction of «the Edgeworth’s box» on the basis of two approaches will most accurately express the existence of effective changes. Also, this model examines the directions of implementing their influence on the socio-economic indicators of the municipal formation. The field of application of the results of the study is quite extensive. The article will be of interest to scientists, teachers, graduate students and students, local government bodies, which are engaged in the development of strategic provisions for the social and economic development of the municipality.