Classification of Municipality’s Reactions: A System-Activity Approach to Studying

The paper substantiates the content of the concept “municipality's reaction”. It characterizes a municipality as a complex socio-economic system that comprises natural-resource, social-demographic, administrative-territorial, economic, financial-budgetary and organizational-management subsystems. The authors review the main fields of activities of local authorities of a municipality. The study provides the authors' classification of municipality's reactions from the standpoint of its subsystems (system-based approach) in conjunction with the spheres of activities of local authorities (activity-based approach). The proposed system-activity approach to studying municipalities' reactions is new to the regional economics and can be applied in research papers on problems of municipal economy, municipalities' responds to changes in regional parameters and taking managerial decisions at local level.