Welfare Effect Of Property Rights

Property rights as the rule of constraining the behavior of people seeking benefits, constitutes the basic content of the social economy life. The relations and the system of property rights decide the status of social welfare and become the base of social foundational institution choice, through influencing the human behaviors and economic performance and the wealth distribution. Therefore, people began to pay more attention to the problem of how to select the efficient system of property rights to realize the social welfare maximization. The theoretic research papers are gradually increasing.Regardless of the modern property rights economics or the Marxist economics, they both investigate the system of property rights on the assumption of their respective connotation of social welfare. However, it has not formed a consistent standard to estimate the welfare effect of system of property rights so that the analysis of the problem can not be comprehensive and objective. In this dissertation, a unified research framework will be constructed to study how the system of property rights affects the economic subject behavior, results what kind of economic performance and the wealth distribution, and decides the social welfare effect finally.Property rights decide the basic connotation of social welfare which needs different interest realization mechanisms to realize under various systems of property rights. The welfare effect of system of property rights depends on the efficacy exertion of the interest realization mechanism. The incentive and distribution effect of the property rights subjected to the interest realization mechanism influence the situation of resource allocation efficiency and income distribution justice, and the welfare effect under certain property rights. Accordingly, this dissertation puts forward a correct method of studying the welfare effect of property rights. Through analyzing the action process of interest realization mechanism, it can be found out the social welfare effect influenced by the system of property rights. Based on the investigation on the interest realization processes, this dissertation thinks that there is no completely perfect interest realization mechanism which can guarantee the social welfare maximization. The exchange mechanism and distribution mechanism both have defects at improving the social welfare. Private property rights have the advantage at improving economic efficiency under the exchange mechanism, but it can not adjust income distribution gap resulting in more serious unfair income distribution. Public property rights should have the advantage at realizing income distribution justice, but it leads to deficient incentive and low economic efficiency. If the interest realization mechanism can promote the incentive function of the property rights to run more efficiently and adjust income distribution to reasonable pattern, then the property rights influenced by this interest realization mechanism has much higher welfare effect. Furthermore, this dissertation analyzes the status of social surplus influenced by exchange mechanism and distribution mechanism from the evident angle to prove above-mentioned viewpoint.Because there do not exist single forms of property rights which can realize the social welfare maximization under realistic condition, this dissertation presents that one effective system of property rights must have two basic characteristic to enhance social welfare, one is to promote the relationship between humans and things coordinative, the other is to improve the relationship between human beings harmonious. In the end, on the basis of clarifying the objectives of state-owned enterprise reform, this dissertation points out that the reform key is not only to increase economic benefits, but also to share the returns of state-owned assets among all people, then propose the direction of state-owned enterprise reform. Only when the systems of state-owned property rights could promote both the relationship between humans and things and human beings coordinative and harmonious, we can realize the objective of enhance social welfare.