Property Rights and Property Law

HANDBOOK OF LAW AND ECONOMICS, Polinsky & Shavell, eds., Forthcoming

72 Pages Posted: 20 Aug 2004

See all articles by Dean Lueck

Dean Lueck

Indiana University

Thomas J. Miceli

University of Connecticut - Department of Economics

Abstract

This chapter examines the economics of property rights and property law. It shows how the economics of property rights can be used to understand fundamental features of property law and related extra-legal institutions. The chapter examines both the rationale for legal doctrine, and the effects of legal doctrine regarding the exercise, enforcement, and transfer of rights. It also examines various property rights regimes including open access, private ownership, common property, and state property. The guiding questions are: How are property rights established? What explains the variation in the types of property rights? What governs the use and transfer of rights? And, how are property rights enforced? In answering these questions we argue that property rights and property law can be best understood as a system of societal rules designed to maximize social wealth. They do this by creating incentives for people to maintain and invest in assets, which leads to specialization and trade.

Keywords: Property rights, ownership, transaction costs, externality

JEL Classification: D23, D62, K11, K23

Suggested Citation

Lueck, Dean and Miceli, Thomas J., Property Rights and Property Law. HANDBOOK OF LAW AND ECONOMICS, Polinsky & Shavell, eds., Forthcoming, Available at SSRN: https://ssrn.com/abstract=578323

Dean Lueck (Contact Author)

Indiana University ( email )

107 S Indiana Ave
100 South Woodlawn
Bloomington, IN 47405
United States

HOME PAGE: http://https://economics.indiana.edu/home/people/lueck/

Thomas J. Miceli

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States
860-486-5810 (Phone)
860-486-4463 (Fax)

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