Subject This article examines the ratio of the regional government apparatus and the cost of maintaining it in the context of the impact on the region's overall performance. Objectives The article aims to explore the category of Institutional Environment as a characteristic of the economic efficiency of regional public administration. Methods For the study, I used the methods of comparative analysis, economic and mathematical modeling, statistics data processing techniques, and specially designed application software. Results The article formalizes and describes the category of Institutional Environment and compiles numerical indicators that characterize the basic aspects of its functioning. It also proves the correctness of formalization and quantifies the effectiveness of regional governance by treating the subjects of the Russian Federation, which are part of the Northwestern and Volga Federal Districts, as case studies. Relevance The practical use of the methodological approaches developed will help address the issues of strategizing in terms of the region's advanced development.
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