Property is only another name for decentralized creation of knowledge

Juan Ramón Rallo ()
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Juan Ramón Rallo: Universidad Francisco Marroquin

European Journal of Law and Economics, 2019, vol. 47, issue 1, No 3, 43-55

Abstract: Abstract Eric A. Posner and E. Glen Weyl argue in a recent paper that a private property regime is incompatible with allocative efficiency insofar as it allows owners to ask for monopoly prices to potential buyers. In order to remedy this defect without penalizing investment efficiency, they propose to implement a Harberger tax. In this paper we show that the Harberger tax is a mechanism that penalizes the informational investment necessary to reach efficient estimates of the fundamental value of assets and, therefore, a mechanism that move us away from both investment efficiency and allocative efficiency.

Keywords: Harberger tax; Property; Efficiency; Knowledge (search for similar items in EconPapers)
JEL-codes: D61 D83 H21 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s10657-018-9607-6

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