Modeling of priority institutional measures to overcome threats to sustainable development of the region

Abstract

Abstract The study suggests the methodology and model calculations of implementing priority institutional measures to overcome threats to sustainable development, the theoretical foundation of which is macroeconomic theory: aggregate demand, aggregate supply and the model of general macroeconomic equilibrium that allows modeling all the defined priority areas: 1) proposed measures to prevent corruption and reduce the level of shadowing of the economy by legislatively limiting markups for "padding firms" to no more than 15%, which limits the level of shadowing to no more than 15% and an increase in the share of wages in output at the level of EU countries – 0.28; 2) the quantitative impact of wage increases on macro indicators is shown; 3) adherence to realistic and optimistic development scenarios ensures innovation efficiency at the level of 0.89 and 2.1, respectively, instead of the current level of 0.13; 4) increase in investment, export of goods and services, household consumption and decrease in import of goods and services; an annual strategic plan for the restoration of the ecological component and its indicators on the trajectory of sustainable development has been developed, which ensures the level of reliability of environmental safety at the level of the EU countries.The simultaneous application of macroeconomic levers creates a cumulative effect of economic growth of all interconnected macroeconomic indicators.