Wow! eBook
Institutional Foundations of Impersonal Exchange – Theory and Policy of Contractual Registries
Author(s): Benito Arruñada (Author)
- Publisher: University of Chicago Press
- Publication Date: 9 Oct. 2012
- Language: English
- Print length: 312 pages
- ISBN-10: 0226028321
- ISBN-13: 9780226028323
Book Description
Governments and development agencies devote considerable resources to building institutions to protect property rights. When the owners of property feel that their claims are protected by law, they have greater incentive to invest in their property or use it as collateral. Similarly, when entrepreneurs are able to easily formalize their activities, they benefit from gaining access to courts and transforming their firms into legal entities. Policies for protecting property rights have thus become an important factor in economic growth. Benito Arrunada broadens this account through an examination of the costs and benefits of strong property rights within the context of impersonal trade. Trading with strangers is a route to growth, but inherent in the process are risks that can be mitigated by land and company registries, which enable both sides to protect their property rights. Tracing the development of registries in developed and developing countries, Arrunada argues that, while no single institutional arrangement is appropriate across the board, there are general principles that may be applied to facilitate the protection of both private property and impersonal trade. With its nuanced presentation of the theoretical and practical implications, this book expands our understanding of how property rights work in today’s world.
Editorial Reviews
Review
“This is law and economics at its best. Benito Arruñada’s brilliant book greatly advances our understanding of how law and legal institutions affect the possibilities for trade. Very unusually, it also demonstrates how the needs of transacting parties and the interests of those who serve them profoundly shape a wide range of institutions from contract enforcement to title registries.”–Henry E. Smith, Harvard Law School
–P.J. Hill, Wheaton College
“With
Institutional Foundations of Impersonal Exchange, Benito Arruñada fills an important gap in the literature on institutions and economic growth. He recognizes the importance of impersonal exchange for growth, but also understands there are trade-offs in developing the institutional framework for such exchange. This book is a ‘must read’ for anyone who wants to understand the full range of rules governing property rights protection, enforcement, and exchange.”–P.J. Hill, Wheaton College
“Benito Arruñada has produced a masterly analysis informed by sound economic and legal theory. It deals with a very real-world problem: the issue of how best to provide security to participants in transactions in impersonal contexts. His focus on impersonality clarifies the fundamentals of a long-running debate in the world of development over the priority to be given to formalization of land rights. Registration, his analysis suggests, is properly seen as a response to the needs of impersonal markets in land, not a magic wand for creating them.”
–John W. Bruce, Land and Development Solutions International, Inc.
About the Author
Benito Arrunada is professor of business organization at Pompeu Fabra University in Barcelona.
