State and public choice: political economy aspect

The purpose of the study is to substantiate the need to modify established social structures, due to institutional changes, in order to implement public choice in the national economic system. Because even the most effective institutions at certain stages of economic growth become unacceptable in a situation with a stagnating pace of economic dynamics, there is a need for the state to form a structure of formal institutions that can reduce the area of distribution of informal institutions. The scientific novelty lies in the substantiation of a new political and economic approach to solving the problem of implementing a public choice based on national specifics, predetermined by economic, political and social circumstances. As a result of the study, it was concluded that it is the state that is assigned the role of the center, which should take into account the desire of economic agents to reduce the volume of transaction costs based on the state and its formal institutions.