The Behavioral Contours of the Theoretical Construction of Public Finance

Contemporary challenges and turbulent changes in the environment of public finance operations necessitate the search for innovative approaches to the formation of models and technologies for their management, taking into account the behavioral aspects of decision-making by both public authorities and other entities in financial relations. In this context, the aim of the article is to analyze the fundamental theories of public finance through the prism of behavioral aspects: the theory of public choice, fiscal exchange, and public good, which incorporate the main postulates of the theoretical achievements of financial science, the samples of which are utilized by all democratic countries with market economies. The scientific study was conducted using methods of systematization and generalization, comparison, logical ordering, and empirical research. Based on a detailed elaboration of the key ideas and worldview positions of the theoretical heritage of public finance, the authors present a unique approach to the theoretical framework of public finance through a specific scientific lens that outlines behavioral contours and the influence of various subjective factors on decision-making within these theories. This has allowed for substantiating the relevance of incorporating the behavioral aspect into public finance management models to correct the irrational behavior of economic entities (public authorities, management bodies, business structures, taxpayers, voters, civil society organizations, etc.) towards increasing rationality without restricting their choices or applying coercion. This approach corresponds with behavioral management models, the scientific understanding of which will be the subject of our further research.