The creation of the rule of law and the legitimacy of property rights : the political and economic consequences of a corrupt privatization / Karla Hoff, Joseph E. Stiglitz.

Format:

Book

Author/Creator:

Hoff, Karla, 1953-

Contributor:

National Bureau of Economic Research.

Stiglitz, Joseph E.

Series:

Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11772.

World Bank e-Library.

NBER working paper series ; working paper 11772

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

NBER working paper series vol. working paper 11772

Creation Of The Rule Of Law And The Legitimacy Of Property Rights

Place of Publication:

Cambridge, MA : National Bureau of Economic Research, c2005.

System Details:

data file

Summary:

"How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? We investigate the demand for the rule of law in post-Communist economies after privatization under the assumption that theft is possible, that those who have "stolen" assets cannot be fully protected under a change in the legal regime towards rule of law, and that the number of agents with control rights over assets is large. We show that a demand for broadly beneficial legal reform may not emerge because the expectation of weak legal institutions increases the expected relative return to stripping assets, and strippers may gain from a weak and corrupt state. The outcome can be inefficient even from the narrow perspective of the asset-strippers"--National Bureau of Economic Research web site.

Notes:

Print version record

November 2005.

Includes bibliographical references.

Publisher Number:

10.1596/1813-9450-3779