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SSRN Electronic Journal
Article . 2016 . Peer-reviewed
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Securing Property Rights

Authors: Giacomo A. M. Ponzetto; Edward L. Glaeser; Edward L. Glaeser; Edward L. Glaeser; Andrei Shleifer; Andrei Shleifer;

Securing Property Rights

Abstract

A central challenge in securing property rights is the subversion of justice through legalskill, bribery, or physical force by the strong the state or its powerful citizens against theweak. We present evidence that the less educated and poorer citizens in many countries feel theirproperty rights are least secure. We then present a model of a farmer and a mine which canpollute his farm in a jurisdiction where the mine can subvert law enforcement. We show that, inthis model, injunctions or other forms of property rules work better than compensation fordamage or liability rules. The equivalences of the Coase Theorem break down in realistic ways.The case for injunctions is even stronger when parties can invest in power. Our approach shedslight on several controversies in law and economics, but also applies to practical problems indeveloping countries, such as low demand for formality, law enforcement under uncertainproperty rights, and unresolved conflicts between environmental damage and development.

Keywords

injunction, property rights, subversion, Macroeconomics and International Economics, liability

  • BIP!
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    citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    3
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Average
Average
Average
Green
bronze