ARTÍCULO
TITULO

CONCEPTUAL FRAMWORK FOR UNDERSTANDING THE INFLUENCE OF EFFICIENT PROTECTION OF PRIVATE PROPERTY RIGHTS ON ECONOMIC EFFICIENCY

Vladan Ivanovic    

Resumen

Property rights represent one of the most significant structural determiners of efficiency in economic system. Regarding this fact, their content influences the institutional, legal and distribuitive sphere, their effect on economic performances in national economy is complex and substantial. Specific characteristics related to social and economic characteristics of a right holder, making adequate incentives, more complete evaluation, their individuality, exclusivity and free tranferability, combinatory effect, specialisation, productivity, social compactness and organizational complexity, caused private property rights to influence considerable economic potential. Mechanisms for achieving that refer to enabling trade, boosting market and competition forces, reduction of transaction costs and providing adequate motivation for economic agents. Imperfection of political process and the resulting political institutions represent the main causes of inefficient protection and enforcement of private property rights. Specific historical experiencies in developing different national economies distinctly confirm their indesputable characteristics in making national economy to work efficiently and in providing high level of long term economic development and growth. Key words:  private property rights, formal institutions, economic efficiency, imperfect political institutions, economic history.

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