Ownership in Economic Theory

The concept of private property in economic theory occupies a key place, regardless of how the author of a particular economic
theory interprets the consequences and role of private property in social relations. Without the institution of private property,
it is impossible to form market mechanisms, a modern mechanism of social production, and the distribution of material goods.

Property Rights

Property is a set of public rights of the subject of property, including the right of disposal, the right of possession, and the
right to use the property object. Only the presence of all three aspects of rights to the property object allows us to speak
of the existence of the right of ownership to the object.

Objects and Subjects of Property

• Subject of Property (Owner): People or groups of people who enter into property relations. The subject (owner)
  can be an individual, a group of people, or the state.
• Object of Property: Any property owned in whole or in part by the owner. These include the means of production
  and the product of human activity, which are appropriated by subjects (owners). In most countries, real estate,
  movable property, and intellectual property are legally enshrined as objects of property.

Economic and Legal Aspects of Property

The concept of property is a product of social relations. The right of ownership arises as a result of its recognition by
other subjects of public law. In simple terms, until other people (society) recognize your right of ownership, it cannot arise.
The right of ownership develops alongside social relations. For example, the emergence of the right to land in a primitive
society of nomadic cattle breeders is impossible.

The Role of Property in Economic Theory

Property is the means of production and the product of human activity, which are appropriated by subjects (owners).
Property is acquired through production, exchange, and consumption.

Economic vs. Legal Perspectives on Property

A key feature of the economic view of property, in contrast to the legal aspects, is the consideration of the actual state
of affairs and the actual relations between participants in economic activity. In this context, the legal side of the issue is
secondary. Economists take into account processes occurring in the “gray” and “black markets,” as well as relationships
of business entities that are not legally formalized.

From an economic perspective, property relations involve the processes of creation, distribution, and consumption of
material and non-material goods in society, which arise in the process of social production. This includes the creation,
distribution, and appropriation of these goods.

For economists, the possession of property is crucial. Possession of property grants a special social status to the owner in
relation to other people. Unlike lawyers, economists consider not only the produced property but also the production of property itself.

Here’s a revised and expanded version of your text on the legal meaning of the concept of property:

Legal Meaning of the Concept of Property

Inherent Features of Property

The triad “possession - disposal - use” should be considered in more detail. Only the presence of all three can indicate
the existence of the right of ownership of an object.

1. Right of Ownership: This grants the owner the right to sell, donate, transfer by will, etc., the property.
2. Right of Disposal: This allows the owner to lease the property, pledge it, modify it, and even destroy it.
3. Right of Use: This permits the owner to use the object to make a profit, use it for its intended purpose, or simply
   consume it (for example, eat an apple).

Legal Perspective on Property

Lawyers, unlike economists, consider only produced property and do not take into account its production. From a legal
point of view, the focus is on defining the relationship between the property object (property) and its subject (owner),
as well as regulating property turnover. This includes relationships regarding the ownership, disposal, and use of property.

Extended Explanation

• Right of Ownership: This is the most comprehensive right, encompassing the ability to transfer property through various
  means such as sale, donation, or inheritance. It signifies full control over the property.
• Right of Disposal: This right allows the owner to make decisions about the property’s future, including leasing it out,
  using it as collateral for loans, altering it, or even destroying it. It reflects the owner’s authority to determine the property’s fate.
• Right of Use: This right enables the owner to derive benefits from the property, whether by generating income, utilizing
  it for personal or business purposes, or consuming it directly. It highlights the practical utility of the property to the owner.

From a legal standpoint, property rights are essential for defining and regulating the interactions between individuals and their
possessions. These rights ensure that property can be transferred, utilized, and managed in a structured manner, providing stability
and predictability in economic and social relations.

Property Classification

It is important to understand that the principles of property classification are relatively arbitrary, and the attribute by which the classification
is carried out can vary depending on the goals set when constructing such a classification system. Property can be distinguished in
the legal and economic sense, from the point of view of political science, macroeconomics, and other perspectives.

Below are examples of several types of property classification.

Classification of Types of Property by Purpose

Classification by Type

From the point of view of legal regulation of property turnover, the main significant differences can be established for the following groups of property:

• Real Estate: Land, buildings, structures, infrastructure facilities.
• Movable Property: Items that can be moved, such as machines, various equipment, tools, and durable goods (cars, furniture, etc.).
• Intellectual Property: Products of human mental activity, including scientific works, manuscripts, inventions, discoveries,
  software for electronic equipment, scientific and technical inventions, achievements in art and literature, and other products of human intellect.

Classification of Forms of Ownership by Legal Regime

• By the Subject (Owner) of Ownership: Individual citizens, groups, legal entities, the state.
• By the Form of Appropriation: Individual, collective, and state ownership.
• By the Composition of Subjects (Owners): Individual, group, public.

Other Options for Classifying Types of Ownership

• Private Property: The owner exercises their rights independently of other people. The owner of private property is known,
  and the responsibility for its ownership is specific. The owner independently exercises the rights of ownership, disposal, use,
  and appropriation, with a desire to manage their business in the most rational way.
• Collective Property: This type of ownership is based on the unification of several owners. Collective property is divided into:
  • Cooperative Property: Collective property with features of individual property. Each owner participates in the collective
    property with their labor and property, has equal rights in management and distribution of income. The amount of income
    is determined by the individual contribution.
  • Joint-Stock Property: Collective creation of income and division of profits with subsequent individual appropriation in
    the form of dividends.
  • Partnership Property: Pooling of capital of two or more persons. Owners receive profit proportionate to their contributions.
• Public Property: Different persons jointly exercise the rights of ownership. Individual property is excluded. Property rights belong
  to everyone, with a high degree of socialization. This is most often represented by state property or property of public organizations.
  Public property is divided into:
  • State Property: Property is concentrated in the state. The owner is the state, and management is carried out by appointed managers.
  • Property of Public Organizations: Members of the organization appropriate and dispose of the property on an equal basis
    for all. State municipal enterprises are formed on the basis of this property.