Institutional design and mechanisms of regulation of the consumer credit market in depressed territories
The paper deals with the study of institutional design within the frameworks of new institutional economic theory (namely, Douglas North's approach) and original (old) one. Contradiction between spontaneous evolutionary processes and conscious institutional change during institutional design is considered in the context of interaction between the institutions and mechanisms of regulation. The complementarity of institutions is viewed as important prerequisite for efficient organization of administrative and economic activities in a given territory: the lack of complementarity can cause emergence of institutional dysfunctions. It is possible to influence upon credit behavior through institutional design aimed at development of socially-oriented consumer lending. Complementarity between the components of the institutional structure of the consumer credit market and business working rules is to be achieved in the process of institutional policy construction. Local authorities developing and implementing programs that promote to improve socioeconomic status of the depressed territory, it'll be feasible to reduce households' debt load and credit risks, ensuring at the same time financial sustainability of households in the long term.