Economic analysis of legal regimes governing real estate property transfer in the Republic of Serbia (original) (raw)
PhD Thesis, 2017
ECONOMIC ANALYSIS OF LEGAL REGIMES GOVERNING REAL ESTATE PROPERTY TRANSFER IN THE REPUBLIC OF SERBIA ABSTRACT: The topic of research of this paper is efficiency of various regimes of real estate property transfer done on the basis of the real estate purchase contract. The paper primarily covers the Austrian, German, and French systems, as well as, specific features that exist in the Serbian legal system that distinguish it from the Austrian system. Further, the research covers some special cases of the real estate property transfer. Apart from examining civil law legislation, the topic of research are fiscal policy instruments used by the state to influence allocation of real estate. The goal is to determine social costs and each legal regime and, based on the analysis, to propose possible changes of legislation. The first part of the paper is titled ‘the Legal Regimes Governing Real Estate Property Transfer and Allocation of Risk’. This section offers analysis of economic implications of comparative law models and there effects on the efficiency and prosperity. The second part of the paper deals with the special cases of the real estate property transfer. First, the author provides analysis of the statutory right of first refusal to purchase real estate property that exists in the Serbian law. Then, the author gives analysis of a special regime of acquiring real estate property by foreign natural and legal persons. Third, the paper deals with a method of acquiring real estate property by state authorities and the manner in which such authorities dispose of such property. The third part of the paper examines the instruments of fiscal policy used by the state to influence the offer of and demand for real estate property. Those instruments are taxes and subsidies. The paper studies allocate effects of the tax policy and the policy of providing incentives for buying newly built apartments and housing. At the end of the third part of the paper, the author points to the type of correlation that exists between taxation policy and the subsidies policy concerning the real estate property transfer. Due to the interdisciplinary nature of the subject matter of this article, the author opted to use a combination of economic and legal methods of analysis. The economic methods include, primarily, the neoclassical and new institutional economics model, welfare economics model, game theory, and public choice theory. In terms of legal methods, the author used normative and comparative legal methods, and to a lesser extent, the historical legal method. In order to confirm certain theoretical premises, the author conducted an empirical research.