Dual approach to the study of land market functioning

The article reveals the essence, the structural elements and features of the mechanism of functioning of the market of agricultural land. The authors present the supplementing idea on the structural dichotomy of the agricultural land market. In contrast to neoclassical approaches, it is proposed to explore the market based on its structural dichotomy - market property rights and market rights of management. In this context, the mechanism of functioning of agricultural lands market performs the function of a basic element in the system of land relations to ensure market circulation of agricultural land through alienation and assign full or partial rights of land ownership. The use of the institutional approach to the study of market structures justifies the dual nature of the mechanism of functioning of the market of agricultural land due to the fact that on the one hand, the market is slow and limited in the market space of the rare economic good or factor of production, and on the other hand, it is a dynamic institutional and economic system within which the specification of property rights to land is implemented. The structure of the mechanism of functioning and development of agricultural land market is considered as a system of interrelated and interacting elements of state regulation and market self-regulation, based on the principles of coordination and harmonization of personalized economic interests and market law of supply and demand. The combination of elements of market self-regulation and state regulation allows in practice to justify the choice of model combinations of stable and changing elements of the mechanism. This combination complies with the institutional conditions for the functioning of the market of agricultural land considering the dominance of regulated sustainable standards at the market of property rights and in the frames of informal institutions at the market of the management rights. The authors prove the prospectivity of the institutional approach in the framework of new institutional theory for the selection of effective mechanisms, forms and ways of realization of the rights of land ownership, economic interests of subjects of the market and trends of institutionalization of the market of agricultural lands.