Principles of distribution of powers between levels of government

The paper discusses the approach to formalizing the distribution of expenditure powers for the provision of public services to the population between levels of government. The relevance of the study is determined by the need to find optimal forms of interaction between the state and the population in the process of providing citizens with pure and mixed (local) public goods. As a research methodology, the use of agent-based approach is proposed, as relatively new direction of simulation modeling. Agent-based modeling aims to represent the complex social and economic phenomena from the bottom up, when the global dynamics of the system is explained through local actions and interactions of elementary entities that make up the body of the simulated object. Modeling opens wide possibilities for simulation analysis of objects with which real experiments are impossible for technical, ethical or economic reasons.