STUDY OF PROPERTY RIGHTS AS A LEGAL MECHANISM OF ECONOMIC REGULATION

Introduction: The relationship between economics and law as a science and as subject areas of socio-economic relations is determined by the diversity of economic interests, the need to protect and guarantee their implementation. Different types of socio-economic systems differ from each other in the type and forms of ownership. An element of ownership is the right of ownership, which is a mechanism for achieving economic goals of economic entities. The article examines the law as a mechanism for regulating the economy; studies the economic and legal nature of the right of ownership; examines the right of ownership as a mechanism for realizing economic interests. The work presents the author’s model of the mechanism of ownership, its constituent elements and the influence of ownership on incentives and incomes of economic entities. At the end of the article, conclusions are made and directions for further research are presented. Methods: The methodological basis was formed by such principles and methods as: interdisciplinary approach, general scientific and private methods of scientific knowledge. It is the interdisciplinary approach that allows for a comprehensive study of property rights as a mechanism for legal regulation of the economy. Results: The analysis revealed that law is a legal category, but it is studied comprehensively as a mechanism that facilitates the achievement of a goal that is equally accessible for implementation by all groups of economic interests; law is capable of maintaining order and stability in the socio-economic system, implementing laws in it and maintaining the market. Ownership plays a special role in the legal and socio-economic system. The economic implementation of ownership is aimed at generating income as a result of economic activity, and the legal implementation of ownership is represented by laws and regulations, compliance with which maximizes the benefits of economic entities. The mechanism for implementing ownership is not an arithmetic combination of elements, but a complex phenomenon caused by cultural and social values shared by economic entities. In addition, the empirical analysis of the Property Rights Protection Index for Russia (1995–2024) confirms that the effectiveness of property rights as a legal mechanism directly depends on the institutional environment. Periods of index growth are associated with legal predictability and regulatory transparency, while sharp declines correlate with increasing state control, selective enforcement, and nationalization practices. Discussion: As is known, everyone is equal before the law, therefore, from the point of view of the rule of law and the efficiency of the economic system, all interests are equally important and the weight of each of them is determined by the sphere of implementation. For example, if we are talking about the economic sphere and market development, the efficiency of economic interactions and solving short-term problems, then private economic interests will play the main role here. The most effective economic mechanism for implementing economic interests is the market. But the market is not a perfect mechanism for regulating interests and generates «failures» that this mechanism is unable to correct on its own. The state comes to the aid of the market, whose task is to preserve the market, to help it overcome «failures». But by solving problems that are not characteristic of it, the state itself generates insolvency. Therefore, law becomes an important mechanism.