Economic Aspects of Local Authorities Functioning

The relevance of the study on economic aspects of local authorities’ functioning is due to their dual nature in the complex system of market relations. In this regard, this article is aimed at economic aspects’ revealing of local authorities’ functioning, as well as the disclosure of various interest levels’ interaction in the system of municipal management. A leading approach in the study of this problem is the method of the effectiveness assessing of local authorities’ functioning. The article presents the analysis of domestic researchers’ different points of view in relation to the substantial characteristics of municipal economy, reveals the nature of the interaction of various interest levels in the system of municipal relations, discloses the duality of local authorities’ position in the municipal system of economic relations, proposes a classification of business entities under the municipal economy, proves the specificity of the economic and moral relations in the system of local authorities. The article is valuable for researchers, teachers and students studying the problems of formation and development of the national municipal economy, research methods within the discipline "Economics of public (government) services", "Municipal economy", as well as specialists of local authorities who are concerned with the improvement and development of municipal economy.