The Roles of the State and the Market in Establishing Property Rights
- (pp. 87-103)
AbstractUsing the experiences of Eastern Europe as an example, this article argues that, contrary to the economists' assumption that property rights are a precondition of a market economy, market institutions are often a prerequisite for a viable private property regime. Progress in the development of complex property rights in Eastern Europe, thus, cannot be expected to come primarily from a perfection of the legal system. Instead, it is more likely to arise as a market response to the demand for property rights. Indeed, legal entitlements can only be expected to become effective against a background of self-enforcing market mechanisms.
Citation1996. "The Roles of the State and the Market in Establishing Property Rights." Journal of Economic Perspectives, 10(2): 87-103. DOI: 10.1257/jep.10.2.87
- D23 Organizational Behavior; Transaction Costs; Property Rights
- P21 Socialist Systems and Transitional Economies: Planning, Coordination, and Reform
- P26 Socialist Systems and Transitional Economies: Political Economy; Property Rights