The Economic Analysis of Property Rights and Its Contemporary Framework

This article provides a comprehensive account of the economic analysis of property rights, examining its evolution from the classical theories of Thomas Hobbes and utilitarianism to contemporary neoclassical and institutional frameworks. The authors examine key concepts such as the Pareto optimum, the Kaldor-Hicks criterion, and Ronald Coase's groundbreaking thesis on transaction costs. The text contrasts traditional approaches to allocative efficiency with the radical perspective of the Austrian School based on praxeology and modern findings from behavioral economics, including loss aversion. The reader will also find an in-depth analysis of the role of the state in the context of the internalization of externalities, Piguvian taxation, and the provision of public goods. This is essential reading for those seeking to understand how different economic paradigms shape contemporary legal systems.