often problems are usually not fundamentally market failure. Rather ,They are most often due to the failure of government to allocate enforceable rights.
Typically, the crucial factor in making a distinction between structural and in Typically, the crucial factor in making a distinction Trees are stitutional problems is whether or not the good displays spatial may be. When spatially stationary, salmon are and may or no owner- resources are spatially stationa their ownership can be attached to the aspects ship of Owners of the land are usually to monitor effectively all of their property rights and, consequently, ensure exclusive use. Given exclusion, common property resources become private resources that will be used in an eco a nomically efficient manner. Without spatial stationarity, ownership of land is not good proxy monitoring costs and the viability of enforcing exclusion. It does not necessarily follow the open access or common property problem could be dealt by some form of private ownership, it suggest that own- ership of a defined piece of land or water will not be adequate to ensure exclusion Allocating fishing rights to specific water acreage where the fish stock moves over considerable distances, or associating the rights to oil extraction to ownership of land when the oil pool extends under a large number of parcels, illustrate the difficu of creating effective property rights for nonstationary resources. In summary a stationary good may have common property resource charac teristics simply because its ownership is not well defined, perhaps because of the historical accident that at one time supply exceeded demand at zero price. Non tationary goods generally require more complex policy interventions to achieve ficiency because the linking of property rights to landownership will not serve as an effective proxy for exclusive resource ownership of the resource.