Property Is Only Another Name for Monopoly

Abstract

The existing system of private property interferes with allocative efficiency by giving owners the power to hold out for excessive prices. We propose a remedy in the form of a tax on property, based on the value self-assessed by its owner at intervals, along with a requirement that the owner sell the property to any third party willing to pay a price equal to the self-assessed value. The tax rate would reflect a tradeoff between gains from allocative efficiency and losses to investment efficiency, likely in the range of 5-10% annually for most assets. We discuss the detailed design of this system from an economic and legal perspective.

Keywords: Property, Common Ownership, Investment Incentives, Allocative Efficiency, Spectrum, Domain Names

JEL Classification: B51, C78, D42, D61, D82, K11