Redistribution through Property Law

Abstract

This chapter explains the importance of property for promoting equality in society and enhancing people's well-being. It then addresses the major legal debate regarding the method that should be used to redistribute welfare. There is much controversy in the literature as to whether redistribution should be attained solely through taxes and transfer payments (such as progressive taxation and cash assistance to needy families) or also via substantive rules of private law, including property law. The chapter shows how various behavioral phenomena support the use of private law rules alongside taxes and monetary transfers, with applications to two central property law issues: the choice of a family property system and compensation for takings of land.