International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss


Government and the Property Rith
Dr. Abdolali Monsef

In order to accept that the efficiency and inefficiency of a market depends on capabilities of the governments to reducing the transactional costs, guaranteeing the property rights, and removing the traditional market failures, we need to investigate that in what an institutional structure supply of these services by the government may optimize their level and forms and will guarantee the relevant efficiencies. Regarding the new institutional approach it is assumed that the persons (private or public agents) seek their maximum benefits in accordance with the limitations and obligations exacted by that institutional structure. Concerning this assumption we may find out that the market of these services will go to its best status in case that the limitations and obligations enacted by those institution can regulate the behavior of the public agents in a manner that they could seek their maximum benefits in producing these services. These institutions are the rules arising from social culture (convention), formal regulations (such as constitution), and parties. Therefore, the history of economic evolution has had a tied connection with the historical evolution of these institutions.

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