THE ECONOMICS OF PROPERTY RIGHTS: THE RELATIONSHIP BETWEEN PROPERTY STRUCTURE AND ECONOMIC PERFORMANCE

The economics of property rights is a research program that studies the role of property rights in economic development. As a sub-discipline of the law and economics approach, it recognizes ownership or property as an institution and considers private ownership as a main dynamo of the economic development. The Nobel laureates Ronald Coase, Oliver E. Williamson and Elinor Ostrom are accepted as the pioneers of this research program. A property right is an exclusive authority to determine how a scarce resource is used. It involves possession and ownership of things owned. Exclusivity and transferability are two main characteristics of the property right. There are different forms of property. It can be broadly classified into two types, private property and public property. This paper aims to analyze the relationship between types of property and economic performance within the literature of the economics of property rights