ECONOMIC TRUST AS A FACTOR IN PRODUCTION FUNCTIONS

The market economy is based on trustworthy relations, and only in crisis periods, when business activity decreases and economic ties are deformed, does the problem of economic trust arise. There are different types of economic trust, but in this research, only economic trust to the employee is taken into account, which is the confidence of the organization's management in the reliability of his professional competencies. Economic trust accompanies human labor, labor as a resource, therefore, the study proposed to include the economic trust labor factor (L) in production functions. The level of economic trust in an employee depends on the quantity and quality of tasks assigned to the employee, the degree to which they are executed by the employee, and the period of interaction with the employee (at least one year). The mathematical transformations of the Shapiro-Stiglitz and Cobb-Douglas dependencies led to the emergence of identity, which denotes a different interpretation of the labor factor (L) in different models. The basic difference inherent in the initial conditions has been identified: in the Shapiro-Stiglitz model, the quantity and intensity of labor are factors, the production function is the result, and this work must radically have a different assumption — to obtain the result, it is necessary to perform a certain work, the amount of which is inversely proportional to the intensity of labor. Therefore, the authors proposed to understand this factor as a function of labor intensity, the number of hours spent by employees and the level of economic trust. The exceptions are process-oriented productions. The mathematical transformations allowed the authors to present their own version of the Cobb-Douglas production function. Further research of the proposed function is recommended to be carried out through key points, equating partial derivatives to zero. The following types of Cobb-Douglas function were further developed: a) with coefficients of output elasticity for production assets and labor costs; b) with the division of production assets into fixed assets and revolving funds (but only logarithmic dependences are considered here). The authors suggest an approach to assessing the dynamics of social capital through an increase in economic trust.