Property rights (economics): Difference between revisions
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# The right to earn income from the good |
# The right to earn income from the good |
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# The right to transfer the good to others |
# The right to transfer the good to others |
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These rights need not be held by a single person or collective. |
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The concept of property rights as used by economists and legal scholars (see [[property rights]]) are related but distinct. The distinction is largely seen in the economists' focus on the ability of an individual or collective to control the use of the good. For example, a thief who has stolen a good would not be considered to have legal ([[de jure]]) property right to the good, but would be considered to have economic ([[de facto]]) property right to the good. |
The concept of property rights as used by economists and legal scholars (see [[property rights]]) are related but distinct. The distinction is largely seen in the economists' focus on the ability of an individual or collective to control the use of the good. For example, a thief who has stolen a good would not be considered to have legal ([[de jure]]) property right to the good, but would be considered to have economic ([[de facto]]) property right to the good. |
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Revision as of 16:16, 10 June 2008
A property right is the exclusive authority to determine how a resource is used, whether that resource is owned by government or by individuals[1]. All economic goods have a property rights attribute. This attribute has three broad components[2][3]
- The right to use the good
- The right to earn income from the good
- The right to transfer the good to others
The concept of property rights as used by economists and legal scholars (see property rights) are related but distinct. The distinction is largely seen in the economists' focus on the ability of an individual or collective to control the use of the good. For example, a thief who has stolen a good would not be considered to have legal (de jure) property right to the good, but would be considered to have economic (de facto) property right to the good.
Property Rights Regimes
Property rights to a good must be defined, their use must be monitored, and possession of rights must be enforced. The costs of defining, monitoring, and enforcing property rights are termed transaction costs[4][5]. Depending on the level of transaction costs, various forms of property rights institutions will develop. Each institutional form can be described by the distribution of rights. The following list is ordered from no property rights defined to all property rights being held by individuals[6]
- Open access (res nullius)
- State Property
- Common Property
- Private Property
See also
Related Terms and Disciplines
- Bundle of rights
- Legal theory of Property rights
- Law and Economics
- Transaction Costs
Economists working on property rights issues
References
- ^ "Property Rights". Retrieved 2007-01-28.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - ^ "Economics Glossary". Retrieved 2007-01-28.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - ^ Thrainn Eggertsson (1990). Economic behavior and institutions. Cambridge, UK: Cambridge University Press. ISBN 0-521-34891-9.
- ^ Barzel, Yoram (1982). "Measurement Costs and the Organization of Markets". Journal of Law and Economics. 25 (1): 27–48. doi:10.1086/467005. Retrieved 2007-01-28.
{{cite journal}}: Cite has empty unknown parameter:|coauthors=(help); Unknown parameter|month=ignored (help) - ^ Douglas Allen, (1991). What are Transaction Costs? (Research in Law and Economics). Jai Pr. ISBN 0-7623-1115-0.
{{cite book}}: CS1 maint: extra punctuation (link) - ^ Daniel W. Bromley,. Environment and Economy: Property Rights and Public Policy. Cambridge, MA: Blackwell Pub. ISBN 1-55786-087-4.
{{cite book}}: CS1 maint: extra punctuation (link)