by Walter Williams: Economic theory does not operate in a vacuum. Institutions, such as the property rights structure, determine how the theory manifests itself. Similarly, the law of gravity isn't repealed when a parachutist floats gently down to earth. The parachute simply affects how the law of gravity manifests itself. Failure to recognize the effect of different property rights structures on outcomes leads to faulty analysis. Think about several questions. Which lake will yield larger, more mature fish — a publicly owned or a privately owned lake? Why is it that herds of cows flourished and buffalos did not? Who will care for a house better — a renter or owner? The answer to each question has to do with the property rights structure . . . [Read More]Tags: Economics, property rights, Walter E. Williams To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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