SCIENTIFIC AND METHODOLOGICAL CONCEPTS OF PUBLIC FINANCE: RETROSPECTIVE AND CURRENT TRENDS
DOI:
https://doi.org/10.35774/Keywords:
public finance, political economy of public finance, concept, positive and normative approaches to the study of public finance, public goods theory, fiscal exchange theory, public choice theory, “free rider problem”, new institutional theory, behavioral finance theory, quantum finance.Abstract
Introduction. In modern conditions, the science of public finance appears as a holistic, systematized doctrine that organically encompasses a number of economic, social, political, psychological, sociological, philosophical, and moral and ethical aspects.
The emergence of the term “finance” in its modern sense in time (and this is primarily the XIV–XV centuries) coincided with the Renaissance, the ideology of which was characterized by the flowering of humanism and anthropocentrism, focusing attention on man as the highest social value. It is in the scientific works of that time that we find the origins of ideas about finance in general and public finance in particular, as a multifaceted sphere of personalized human motivations and interests, mediated, of course, by monetary and distributional relations.
Currently, the science of public finance is a branch of knowledge that is rapidly and dynamically developing, synthesizing, in addition to purely financial and economic aspects, the multifaceted nature of political, philosophical, behavioral and other spheres and directions of social existence. Therefore, the study of the scientific and methodological basis for the formation and development of the theory and practice of public finance is extremely relevant and highly demanded in modern realities, given the need to maintain the stability of the financial system of Ukraine in the conditions of waging a full-scale war and countering the russian aggressor.
The purpose of the article is researching basic theories and concepts that form the core of public finance, and analysis of modern scientific trends that have a direct impact on the development of the public finance sector in Ukraine.
Results. The article describes the basic concepts of the political economy of public finance, among which the theory of public goods and the problem of the “stowaway”, the theory of fiscal exchange and the theory of public choice are highlighted. The current trends in the development of each of these theories are analyzed, and the emphasis is placed on the current trends in the development of the modern political economy of public finance in the context of the development of the new institutional theory, the theory of behavioral finance and quantum finance. The global and national problems are highlighted, the solution of which the modern science of public finance will work on.
Conclusions. The political economy of public finances, offering tools for implementing the political will of all subjects of the modern democratic electoral process, which directly affects public welfare and financial stability in the state, now goes far beyond the purely formalized and mathematical analysis of public financial processes, positioning public finances primarily as the result of the systemic interaction of various interest groups (social, public, private, etc.). It not only examines public financial flows, but also explains how public authorities use public financial resources, taking into account possible political risks and dominant public interests.
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