Should be

The problem is the market does not deal well with situations where the privacy of the property is not well established. When the agent can internalize what should be external or externalize what should be internal we get market failure. The 'should be' is defined as either that which is pareto superior (in the economic dimension) or that which does not lead to the resource curse (in the political dimension). 

The economic dimension reflects the situation where market failure leads to internalizing what should be external or it leads to the violation of traditions or mishpatim; the political dimension reflects the situation where market failure leads to externalizing what should be internal or it leads to the violation of covenants or chuqim.