by Xavier Cirera and William Francis Maloney · 14 Jun 2017 · 373pp · 109,964 words
people don’t understand is that markets are creations. They are not something which we can [just] find. A market has to be created.1 —RONALD COASE, 1991 NOBEL LAUREATE IN ECONOMICS The Idea in Brief Many of us understand the value of building strong institutions and developing a nation’s infrastructure
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had, but our research shows that even small innovations can begin to transform countries economically and culturally. NOTES 1.Ronald Coase, “Address at Markets, Firms and Property Rights: A Celebration of the Research of Ronald Coase Conference,” published on April 20, 2012, video, 25:40, https://www.youtube.com/watch?v=ZAq06n79QIs. 2.Christensen
by Robert H. Frank · 3 Sep 2011
decided by weighing its cost to those being restricted against the harm others would suffer if the behavior weren’t restricted. The Pivotal Contribution of Ronald Coase Ronald Coase (rhymes with “rose”) won the Nobel Prize in economics in 1991 largely on the strength of his contribution to our way of thinking about this
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of Chicago economists invited Coase, who was then teaching at the University of Virginia, to Chicago to discuss his ideas with them. Twenty economists and Ronald Coase met for dinner at the home of Aaron Director, who was then editor of the Journal of Law and Economics, in which Coase’s paper
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assigning liability to the party whom most would describe as the perpetrator. But not always. There is a measure of irony in the fact that Ronald Coase quickly emerged as the reigning intellectual hero of free-market conservatives on all matters related to activities that cause harm to others. Their embrace of
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the past several centuries. Money has also been indispensable as a unit of account for deciding which of two competing interests should prevail. Thus, in Ronald Coase’s example of the factory owner whose machinery disrupted the neighboring doctor’s practice, the best solution to the problem was easily identified by comparing
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expect them to quickly reach agreement to purchase it. Unfortunately, however, the joint purchase and sharing of facilities is often easier proposed than accomplished. As Ronald Coase clearly recognized, people typically must incur costs merely to discuss joint purchases. With only two people involved, these costs might not be prohibitive. But if
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the distinction between moral concerns and strictly pragmatic ones is often less clear than many believe. A Libertarian Rationale for Progressive Taxation Again it’s Ronald Coase whose insights help uncover a productive new way of thinking about an old problem. Rank in any hierarchy is, like the externalities that were the
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package that best suits them. In contrast, the task of negotiating similar compensation agreements with others outside the workplace would be enormously costly and difficult. Ronald Coase is the free-market conservative’s reigning authority on all questions regarding activities that cause harm to others. His central insight was not that government
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other free-market conservatives offer for opposing a tax on SO2? For the moment, let’s assume agreement that the framework outlined by the economist Ronald Coase is the right way to think about this question (see chapter 6). Some libertarians may disagree, but as I’ll explain in the next chapter
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modern industrial democracies. Many of those same institutions would of course be completely impermissible under libertarian dogma. Coase Revisited The framework suggested by the economist Ronald Coase, discussed at length in chapter 6, provides a useful way of thinking about the issues at hand. To recapitulate briefly, Coase began with the observation
by Jonathan Aldred · 5 Jun 2019 · 453pp · 111,010 words
theories break down. Many of the most influential thinkers behind the triumph of market economics were Mont Pèlerin Society members, including Gary Becker, James Buchanan, Ronald Coase, Milton Friedman, Richard Posner and George Stigler. But they did not always share Hayek’s views. And a few economists, such as Ken Arrow and
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in interviews. The economists’ odd view of the world was inspired by the Coase Theorem, a piece of economic theory attributed to the British economist Ronald Coase, who, coincidentally or not, was an Illinois resident. The theorem presumes that everyone, in all aspects of life, is always willing to do a deal
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should not intervene, because private deals between affected parties can solve all problems. And all this by accident. THE ACCIDENTAL ECONOMIST AND HIS ACCIDENTAL THEOREM Ronald Coase was born in December 1910, in the north-west London suburb of Willesden. Later, Coase would recollect having a ‘weakness in his legs’ as a
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what Coase argued. Indeed, although the Coase Theorem has been enormously influential, it has been subject to strong and persistent criticism from a notable source: Ronald Coase himself. Almost thirty years after the publication of his ground-breaking paper Coase commented wistfully: ‘My point of view has not in general commanded assent
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that his ‘essential criticism of modernism’ was its ‘irresponsible exploitations of technique in contradiction to human life as we know it.’22 Ironic, then, that Ronald Coase, born in December 1910, should have been a victim of the rise of modernism in economics. His subtle ideas, explored through careful case studies, were
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economic theory, one which I was hoping to persuade economists to leave.’23 The usual spelling is ‘Coasean’, not Coase’s choice of ‘Coasian’. Poor Ronald Coase – he didn’t even get to control the spelling of ‘Coasean world’, let alone what it means. 4 The Government Enemy In the early 1950s
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mathematics and economics at Glasgow University he became a lecturer at the new Dundee School of Economics, where he befriended another young new lecturer there, Ronald Coase. Black was already interested in voting systems, in particular how committees might vote to reach a collective decision. Like Arrow, his career was put on
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ideas is highly regarded in academia, so Black’s status in the field seemed secure. But Black was not so lucky. He always worked alone: Ronald Coase described him as ‘unworldly, modest, diffident’; another academic colleague quipped ‘he was an expert on committees but I never saw him sit on one’.5
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within it comparable to Hayek. Of all the formidable intellects in Chicago economics, Friedman was dominant – it was inevitably Friedman who led the interrogation of Ronald Coase over dinner at Aaron Director’s house. More importantly, Friedman revived monetarism to challenge the Keynesian orthodoxy that had reigned supreme over macroeconomics since the
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), 513–30. 2 Shapiro, Fred R., and Pearse, Michelle (2012), ‘The Most-cited Law Review Articles of All Time’, Michigan Law Review, 110 (8). 3 Ronald Coase, autobiographical essay upon winning the Nobel Prize for economics. See https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1991/coase-bio.html. 4 Ibid
by Daniel Yergin · 14 May 2011 · 1,373pp · 300,577 words
channeling thinkers they had never heard of in the first place. THE “SCRIBBLER IN CHIEF” In this case, there was even a “scribbler in chief”—Ronald Coase. Yet Coase would have seemed a most unlikely candidate for this post. Born in 1910, he suffered as a child from “weakness” in his legs
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the hall.27 And that it is how, in the little green room on the last day in Kyoto, “markets” became embedded in climate change. Ronald Coase’s theorem, and John Dales’s refining of it into a “market for pollution rights,” had become international policy. And, if one were looking for
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64. Scanpix/Sipa Press 65. George Bush Presidential Library and Museum 66. Photo provided by the office of Representative Edward Markey 67. Courtesy of the Ronald Coase Institute, Photographer: David Joel 68. Bjorn Sigurdson/AFP/Getty Images 69. Artwork by William J. Hennessy Jr./ CourtroomArt.com 70. Courtesy: Jimmy Carter Library 71
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’s Immoral to Buy the Right to Pollute,” op-ed, New York Times, December 17, 1997; interview with Fred Krupp. 2 Ronald Coase autobiography, Nobel Prize Web site (“underrate your abilities”). 3 Ronald Coase, “The Problem of Social Cost,” Journal of Law and Economics, vol. 3, (1960), pp. 1–44 (“externalities”). 4 John H
by Jeremy Rifkin · 31 Mar 2014 · 565pp · 151,129 words
, was more sensible, allowing firms to recoup their investment while keeping the government’s hands off the economic life of the nation. In 1946, economist Ronald Coase stepped into the fray, taking exception to Hotelling’s thesis by arguing that the social subsidies Hotelling advocated “would bring about a maldistribution of the
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distribution of benefits that most persons in every part of the country would be better off by reason of the program as a whole.45 Ronald Coase didn’t buy Hotelling’s arguments. Recall that Coase, a free-market advocate, didn’t think government was a good prognosticator of consumer demand, even
by Lawrence Lessig · 14 Jul 2001 · 494pp · 142,285 words
dominance of private over state ordering. Markets work better than Tammany Hall in deciding who should get what, when. Or as Nobel Prize-winning economist Ronald Coase put it, whatever problems there are with the market, the problems with government are far more profound. This, however, is a new century; our questions
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Supreme Court came to this conclusion, an English economist was concluding just the opposite. In a review of the FCC's regulation of spectrum, economist Ronald Coase concluded that there was no justification for political regulation of access to spectrum.13 Spectrum was no more “scarce” than land or trees were scarce
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information about widgets, thus lowering the cost of information—then you might have a market large enough to make your weird widget factory work. As Ronald Coase puts it: People talk about increases in improvements in technology, but just as important are improvements in the way in which people make contracts and
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service in Pittsburgh in 1920. See Thomas W. Hazlett, “The Wireless Craze, the Unlimited Bandwidth Myth, the Spectrum Auction Faux Pas, and the Punchline to Ronald Coase's 'Big Joke': An Essay on Air-wave Allocation Policy” (Working Paper 01-01, AEI-Brookings Joint Center for Regulatory Studies, January 2001), 95 (Harvard
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, Economic Analysis of Law, 4th ed. (Boston: Little, Brown, 1992), 673 (saying the Supreme Court's rationale for different spectrum regulation rules “is economic nonsense"). Ronald Coase, however, made the idea famous. See Yochai Benkler, “Overcoming Agoraphobia: Building the Commons of the Digitally Networked Environment,” Harvard Journal of Law & Technology 11 (1998
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. Garfinkel, Architects of the Information Society: Thirty-Five Years of the Laboratory for Computer Science at MIT (Cambridge, Mass.: MIT Press, 1999), 8-9. 28 Ronald Coase, “Looking for Results,” interviewed by Thomas W. Hazlett, Reason (January 1997). 29 See Linda Shrieves, “When It's Your Turn, Here's Why You're
by Richard H. Thaler · 10 May 2015 · 500pp · 145,005 words
shouting contest, especially with a federal judge! The biggest fight was about something called the Coase theorem. The Coase theorem is named for its inventor, Ronald Coase, who had been a faculty member at University of Chicago Law School for many years. The theorem can be easily stated: in the absence of
by Peter Barnes · 29 Sep 2006 · 207pp · 52,716 words
TA L I S M 3.0 Others whose writings have influenced me include E. F. Schumacher, Herman Daly, John Maynard Keynes, John Kenneth Galbraith, Ronald Coase, Louis Kelso, and Henry George. This entire undertaking would not have been possible without the love and support of my entire family, especially Eli and
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libertarian think tanks such as the Cato Institute. The origins of free market environmentalism go back to an influential paper by University of Chicago economist Ronald Coase. Writing in 1960, Coase challenged the then-prevailing orthodoxy that government regulation is the only way to protect nature. In fact, he argued, nature can
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better; it would also pave the way to real-world property rights that actually protect those ecosystems. Beyond Coase’s Supposes “Let us suppose,” economist Ronald Coase wrote in 1960, “that a farmer and a cattle-raiser are operating on neighboring properties.” He went on to suppose further that the cattle-raiser
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.responsibleinvesting.org/database/ dokuman/SRI _10-04_DragonflyMed.pdf. 155 shareholder file resolutions: Report on Socially Responsible Investing Trends. 158 origins of free market environmentalism: Ronald Coase, “The Problem of Social Cost,” Journal of Law and Economics, Oct. 1960, pp. 1–44. www.sfu.ca/~allen/CoaseJLE1960.pdf. 159 polluters trespassing on
by Robert Skidelsky · 3 Mar 2020 · 290pp · 76,216 words
often appeal to the ‘indisputable facts of experience’. Rather, it is based on the claim to ‘direct acquaintance’ or ‘intuitive’ knowledge of how humans think. Ronald Coase (1910–2013) recalled the English economist Ely Devons (1913–1967) saying to him, ‘If economists wished to study the horse, they wouldn’t go and
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of trading individually in markets. The neoclassical logic remains intact: individuals create institutions to maximise their utilities. The father of this approach was Nobel Laureate Ronald Coase (1910–2013), whose seminal article on the firm appeared in 1937, in reaction against the then prevalent theories of oligopolistic competition. It took the overthrow
by Diane Coyle · 11 Oct 2021 · 305pp · 75,697 words
them. When they are not made explicit, there will always be an implicit judgement, just as there is when we make choices in everyday life. Ronald Coase (1960) also pointed out that a cost-benefit analysis of any policy also needs to put the costs of the policy action itself into the
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econometrics courses. Yet even when a counterfactual or alternative hypothesis is explicitly considered, many economists will fall into the trap (described with typical clarity by Ronald Coase, as noted in Chapter One) of comparing a policy with ‘an abstract model of a market situation.… Unless we realise we are choosing between social
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by Söderberg, Johan; Söderberg, Johan;
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