65 Pages Posted: 25 Oct 2000
This paper develops an alternate theory of real property rights known as allodialism, an ancient concept in jurisprudence where real property is owned absolutely, without taxation or regulation, with complete reliance on markets for regulation and the provision of public goods. In urban economics, allodial policy provides an alternative to direct government provision or schemes of semi-privatization which can be criticized by public choice and Austrian economic theory. Allodial policy would: (1) improve the way externalities and real property risks are handled, (2) enhance efficiency through the extensive use of restrictive covenants, (3) make institutional and incentives changes to reduce pollution, (4) facilitate wider application of the Coase Theorem, (5) augment incentives to care for real property, (6) extend the benefits of markets and personal choices by reducing regulation and altering public finance, (7) eliminate virtually all of the costs of urban planning, and (8) reduce consumer costs in general.
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