property rights are called powers of individuals or groups of individuals to use the resources.This relationship between people, which occurs due to the presence of goods and their further use.
theory of property rights define the behavior of people on the benefits.Failure to do so causes a significant increase in costs.
It should also be noted that property relations are based on the problem of scarcity of resources.Establishment of entitlements allows you to limit and regulate conflicts over the use of specific resources.They reduce the uncertainty of the economic environment, making it more predictable.To protect the right set of traditions and unwritten customs.
theory of property rights linked to the behavior of economic agents.However, prohibitions and restrictions do not provide an unambiguous implementation of these regulations.
institutional theory of property rights is considering sharing rights as the exchange of points of powers, which includes eleven elements: ownership, management, use and rights to income and capital value of things, to safety, to the transfer of property by will or inheritance, be liable to a penalty, perpetual, natural expectation of return, the prohibition of harmful use.
problem specification
specification includes a precise definition of all proprietary rights.If a set of clearly defined rights, but there is no adequate protection, it increases the risk of uncertainty.In the real world can not be one hundred percent protection and specification of powers, since it requires a complete, comprehensive information.
Blurring occurs when inaccurate established rights or powers fall under the restrictions that reduce the efficiency of the use of resources and their value.
Coase theorem
According to Coase, externalities (spillovers) arise when powers are not clearly defined.He accuses the existence of market failures.Therefore, it is necessary to improve the legislation.If market failures still remain, then to blame the government.
theory of property rights through the Coase theorem shows that the problem lies not in private ownership, and its shortcomings.Here, the key role played by transaction costs.In that case, if they are equal to zero, it is necessary regulation.When they are positive, the distribution of rights is no longer neutral.It begins to affect the structure of production and its efficiency.Thus, the economic theory of property rights, in particular the Coase theorem, open to understanding the role of the state, new approaches.
main achievements of the theory
theory of property rights explicitly recognized the existence of alternative systems of property rights.There are three main legal regime.When private property is the owner of a single individual.His word in solving any problems of resource use is considered final.Thus, individuals are in a privileged relationship in terms of access to certain resources: it is open only to the owner or persons to whom he has delegated or transferred powers.If state ownership access to rare resources is provided on the basis of a collective interest of society.In fact, no one has a privileged position, since no one's self-interest is not recognized as sufficient for the use of any resource.If the common property and no one has a privileged position, but access to the benefits open to all.
