Research of the Market of Land Property Rights in the Aspect of the Institutional Theory

Abstract

The article reveals the essence, the structure of the market of land property rights presented as a single system of socio-economic sanctioned rules of behavior of economic entities and contractual relations on transaction, specification and implementation of alternative methods of full or limited land property rights in short and long time periods. In the process of the research the authors reveal the features of functioning of the market of full and limited land property rights, specify the subject and object of the research, the character of exchange, the mechanism of implementing market and institutional transaction. Based on conceptual approaches of leading experts, both Western and Russian-built ones, the authors propose an algorithm of the market analysis, justify the dual market model of full and limited property rights on agricultural land, present more models of supply and demand of full rights of land ownership and market of management rights, prove leadership and institutional factors in the structure of non-price determinants of supply and demand. On the one hand, institutional factors influence the creation of a limited framework of behavior of market participants in the process of interaction, and on the other hand, set the structure of incentives for land owners in short and long term. The theoretical model was tested in the course of the empirical research in the framework of the scientific project “Monitoring the Functioning of Local Agricultural Land Markets”, the hypothesis of domination of institutional non-price determinants in the market model was confirmed and the need for market institutionalization was justified.