Property Rights

Property Rights - Property Rights Ariel Singerman November...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Property Rights Ariel Singerman November 16, 2010 Assignment of rights • Property rights are a set of valid claims to a good or resource that consent its use or transfer of ownership through sale • Complete property rights are a requirement for a market to be competitive • Without well defined property rights, markets cannot be relied upon to efficiently allocate goods (or bads) and services • Establishing enforceable property rights makes goods excludable and the price mechanism work Who should own the property rights to the environment ? the polluter or the victim of pollution? • Polluter pays principle is often the one used in public policy in most countries • More controversial: Without victim pollution would not be a problem Coase Theorem • Under some assumptions for efficiency it makes no difference whether polluter or victim has the property rights • If trade is allowed efficiency will prevail irrespective of how property rights are initially allocated i.e.: rights will end up in the “right” hands (of those agents that value them the ost) most) • Of course it does make a lot of difference for the polluter or the victim who has the rights - they can benefit from having them We will consider 2 cases when studying the Coase theorem...
View Full Document

This note was uploaded on 01/27/2011 for the course ARE 176 taught by Professor Farzin during the Fall '08 term at UC Davis.

Page1 / 7

Property Rights - Property Rights Ariel Singerman November...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online