Law and Economics Homework Question! HELP!?

[philibert63]

1. A legal system that ensures the soundness and security of property rights has been found to be a fountainhead of successful economic growth. What privileges does a well-functioning system of property rights bestow upon an asset’s owner? In what way do these privileges create a proper set of incentives that leads to wealth-creation?

In your response you might want to discuss what determines the value of an asset and how property rights can play a role in that value determination.

2. One of the most dramatic changes in the American economy during the past century has been the increasing role of government. Not only has the government’s consumption of goods and services soared during the twentieth century (e.g., from 20 to 36 percent of GDP in the post-war period), but also its authority over private decision-making has expanded with the proliferation of regulation.

Discuss a set of economic rationales for government’s regulation of economic activity. Discuss competing ideas to account for the dramatic increase in regulatory intervention. If one were trying to distinguishing between the two sets of competing hypotheses empirically, how might you go about doing so?

Thanks!!!