Introduction to Property Theory : The Fundamental Theorems
The market system consists of a price mechanism, built on the foundation of a system of property, and contract. In many developing, and transition economies, the market system functions poorly. In many cases, if not most, the malfunctioning is not...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/10/1614961/introduction-property-theory-fundamental-theorems http://hdl.handle.net/10986/19510 |
| id |
okr-10986-19510 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-195102021-04-23T14:03:43Z Introduction to Property Theory : The Fundamental Theorems Ellerman, David PROPERTY LAW PROPERTY RIGHTS THEORETICAL MATHEMATICS MARKET BASED MECHANISMS TRANSITION ECONOMIES DEVELOPING COUNTRIES PRICE POLICY COMPETITION IMPERFECT CONTRACT NEGOTIATION ECONOMIC LAW INSTITUTIONAL ECONOMICS JURISPRUDENCE TRANSACTION COSTS COMPETITIVE EQUILIBRIUM PARETO OPTIMUM ACCOUNTING ALLOCATIVE EFFICIENCY AUTONOMY BONDS CLEARING HOUSE COMPETITIVE MARKETS CONSUMERS DAMAGES DECENTRALIZED DECISIONS DEVELOPMENT ECONOMICS DISEQUILIBRIUM ECONOMIC ANALYSIS ECONOMIC LIFE ECONOMIC MOTIVATION ECONOMIC THEORY EQUILIBRIUM EXCESS SUPPLY EXTERNALITIES INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK MARKET MECHANISM OPTIMIZATION POINTS PRICE THEORY PRIVATE GOODS PRIVATE PROPERTY PRODUCERS PROPERTY RIGHTS TRANSACTIONS COSTS TRANSITION ECONOMIES VALUATION WEALTH WELFARE ECONOMICS WELFARE FUNCTION PARETO OPTIMUM ACCOUNTING The market system consists of a price mechanism, built on the foundation of a system of property, and contract. In many developing, and transition economies, the market system functions poorly. In many cases, if not most, the malfunctioning is not simply in the price system (for example, anti-competitive activities), but in the underlying property system (such as contracts being breached, and externalities in the sense of transfers not covered by contracts). Economic theory tends to take the functioning of the system of property, and contract for granted, and focuses on the operation of the price mechanism. Property theory focuses on the underlying system of property, and contract. In this paper, the author inaugurates the mathematical treatment of property theory. In contrast with earlier work in "law and economics", and the "new institutional economics", this approach uses principles drawn from jurisprudence, and does not attempt to reduce "law" to "economics" in the sense of efficiency considerations, such as the minimization of transaction costs. The main results are the two fundamental theorems of property theory that are analogous to the two fundamental theorems of price theory that, in essence, state that: 1) A competitive equilibrium is Pareto optimal. 2) Given a Pareto optimal state, there exists a set of prices such, that a competitive equilibrium at those prices would realize that Pareto optimal state. 2014-08-20T19:23:44Z 2014-08-20T19:23:44Z 2001-10 http://documents.worldbank.org/curated/en/2001/10/1614961/introduction-property-theory-fundamental-theorems http://hdl.handle.net/10986/19510 English en_US Policy Research Working Paper;No. 2692 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
PROPERTY LAW PROPERTY RIGHTS THEORETICAL MATHEMATICS MARKET BASED MECHANISMS TRANSITION ECONOMIES DEVELOPING COUNTRIES PRICE POLICY COMPETITION IMPERFECT CONTRACT NEGOTIATION ECONOMIC LAW INSTITUTIONAL ECONOMICS JURISPRUDENCE TRANSACTION COSTS COMPETITIVE EQUILIBRIUM PARETO OPTIMUM ACCOUNTING ALLOCATIVE EFFICIENCY AUTONOMY BONDS CLEARING HOUSE COMPETITIVE MARKETS CONSUMERS DAMAGES DECENTRALIZED DECISIONS DEVELOPMENT ECONOMICS DISEQUILIBRIUM ECONOMIC ANALYSIS ECONOMIC LIFE ECONOMIC MOTIVATION ECONOMIC THEORY EQUILIBRIUM EXCESS SUPPLY EXTERNALITIES INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK MARKET MECHANISM OPTIMIZATION POINTS PRICE THEORY PRIVATE GOODS PRIVATE PROPERTY PRODUCERS PROPERTY RIGHTS TRANSACTIONS COSTS TRANSITION ECONOMIES VALUATION WEALTH WELFARE ECONOMICS WELFARE FUNCTION PARETO OPTIMUM ACCOUNTING |
| spellingShingle |
PROPERTY LAW PROPERTY RIGHTS THEORETICAL MATHEMATICS MARKET BASED MECHANISMS TRANSITION ECONOMIES DEVELOPING COUNTRIES PRICE POLICY COMPETITION IMPERFECT CONTRACT NEGOTIATION ECONOMIC LAW INSTITUTIONAL ECONOMICS JURISPRUDENCE TRANSACTION COSTS COMPETITIVE EQUILIBRIUM PARETO OPTIMUM ACCOUNTING ALLOCATIVE EFFICIENCY AUTONOMY BONDS CLEARING HOUSE COMPETITIVE MARKETS CONSUMERS DAMAGES DECENTRALIZED DECISIONS DEVELOPMENT ECONOMICS DISEQUILIBRIUM ECONOMIC ANALYSIS ECONOMIC LIFE ECONOMIC MOTIVATION ECONOMIC THEORY EQUILIBRIUM EXCESS SUPPLY EXTERNALITIES INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK MARKET MECHANISM OPTIMIZATION POINTS PRICE THEORY PRIVATE GOODS PRIVATE PROPERTY PRODUCERS PROPERTY RIGHTS TRANSACTIONS COSTS TRANSITION ECONOMIES VALUATION WEALTH WELFARE ECONOMICS WELFARE FUNCTION PARETO OPTIMUM ACCOUNTING Ellerman, David Introduction to Property Theory : The Fundamental Theorems |
| relation |
Policy Research Working Paper;No. 2692 |
| description |
The market system consists of a price
mechanism, built on the foundation of a system of property,
and contract. In many developing, and transition economies,
the market system functions poorly. In many cases, if not
most, the malfunctioning is not simply in the price system
(for example, anti-competitive activities), but in the
underlying property system (such as contracts being
breached, and externalities in the sense of transfers not
covered by contracts). Economic theory tends to take the
functioning of the system of property, and contract for
granted, and focuses on the operation of the price
mechanism. Property theory focuses on the underlying system
of property, and contract. In this paper, the author
inaugurates the mathematical treatment of property theory.
In contrast with earlier work in "law and
economics", and the "new institutional
economics", this approach uses principles drawn from
jurisprudence, and does not attempt to reduce
"law" to "economics" in the sense of
efficiency considerations, such as the minimization of
transaction costs. The main results are the two fundamental
theorems of property theory that are analogous to the two
fundamental theorems of price theory that, in essence, state
that: 1) A competitive equilibrium is Pareto optimal. 2)
Given a Pareto optimal state, there exists a set of prices
such, that a competitive equilibrium at those prices would
realize that Pareto optimal state. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ellerman, David |
| author_facet |
Ellerman, David |
| author_sort |
Ellerman, David |
| title |
Introduction to Property Theory : The Fundamental Theorems |
| title_short |
Introduction to Property Theory : The Fundamental Theorems |
| title_full |
Introduction to Property Theory : The Fundamental Theorems |
| title_fullStr |
Introduction to Property Theory : The Fundamental Theorems |
| title_full_unstemmed |
Introduction to Property Theory : The Fundamental Theorems |
| title_sort |
introduction to property theory : the fundamental theorems |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/10/1614961/introduction-property-theory-fundamental-theorems http://hdl.handle.net/10986/19510 |
| _version_ |
1764439915835162624 |