Aggregation and the economy prototyping of municipality in the conditions of lability and robust changes

Purpose of the study. The purpose of the scientific paper is the formation of a model of managing the economy of municipality  through aggregation and prototyping in conditions of lability and  robustness of changes. As part of the stated goal, the author is  supposed to conduct the economy prototyping of the municipality  based on built-in management platforms; to form an adapted risk  assessment model in the implementation of smart-project; to  propose an aggregated model for assessing the development of the economy.

Materials and methods. While writing a scientific article, the methods of situational and simulation modeling, approximation and grouping of specific elements of the structural  object, and the process of algorithmization of functional processes  are used. Particular emphasis in this paper is made on the  methodological apparatus, which allows drawing conclusions based  on subjective author’s opinion, to take into account external changes in the system under study. These methodological approaches  include entropy of scientific knowledge, aberration, approximation, robustness.

Results. Within the framework of the conducted research the following conclusions are formed: the municipal economy is in the  process of transformation, it is possible to obtain positive changes  with the help of prototyping the model of municipality; smart- projects as the basis of the economy of the municipality are subject  to robustness and lability of changes, provoking negative risks;  game theory is a rather important tool, used in the context of the  definition of the riskiness of the smart-project the aggregated model  for assessing the development of the economy of the municipality  makes it possible to formulate certain premises of the Smart City  concept in municipalities. 

Conclusion. For the effective development  of municipalities, it is necessary to transform the economies towards the formation of  municipality based on using prototyping and aggregation tools in  conditions of lability and robustness of the changes. Presented in the scientific paper, the aspect of aggregation and prototyping of the  economy of the municipal formation is the initial stage in the  development of the concept of management of the Smart Economy  of the municipal formation. The transformation of municipal  economies regulates the need for a new tool for the development of  these territories. The author of the scientific article proposes to use  the adapted model of risk assessment of Smart-design based on  game theory and the aggregated model for assessing the  development of the economy of a municipal formation. The adapted  model of risk assessment of Smart-design on the ground of the  theory of games is based on the use of the Bayes criterion, Wald’s  maximin criterion, the Savage decision-making criterion, the Hurwitz  stability criterion, the Hodges-Lehmann criterion. The  selected criteria contribute to the definition of the least risky Smart- project with the aim of its implementation in the municipal economy. The aggregated model for assessing the economy development of  the municipal entity projects the regression parameter data algorithm – Constructive Coste Model (COCOMO) on the basis of which a conclusion is given about the level of the economy  development of the municipal formation. In the future, simulation  models of economic management can supplement this study in  conditions of the prevalence of knowledge and intelligence, as well  as methods for assessing the quality of urban technological infrastructure.

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