Property Rights and Economic Theory: A Survey of Recent Literature.

AS CRITICISM of the traditional theory of production and exchange has mounted in the postwar period, increasing attention has been given to new analytical approaches that seek either to supplant classical marginalism or to extend its scope. In the latter category is the important body of literature that has grown up around the notion of property rights structures. The contributions here are quite diverse in style and content but are characterized by a common emphasis on certain basic ideas concerning the interconnectedness of ownership rights, incentives, and economic behavior. The purpose of the present paper is to summarize the essential feature of this line of research, examine some of its important areas of application, and discuss the promise the approach holds for improved understanding of economic problems. To say that the property rights literature has these distinguishing characteristics is, of course, not to suggest that other approaches share none of the qualities noted, or that other lines of investigation are without merit. Nevertheless, the property rights analysis does offer a fresh and useful way of looking at economic problems. Substantial advances, have already been achieved and the literature gives evidence of continuing. vitality and promise of future accomplishment. [ABSTRACT FROM AUTHOR]