Coase’s influence on economics, and Adam Smith’s influence on Coase

Understanding the economy as a dynamic, complex system relies on the foundational work of several economists, including Adam Smith (of course) and Ronald Coase. As Coase observed in his 1991 Nobel Prize address, What I have done is to show the importance for the working of the economic system of what may be termed the … More Coase’s influence on economics, and Adam Smith’s influence on Coase

Coasean taxes and other energy economics stories

Michael Giberson Of note. Daniel Cole, “Thinking About an Optimal Coase Tax” “Economists have spilled a lot of ink trying to specify what an ‘optimal’ Pigou tax would be…¬†Haven’t any of these people read Coase (I mean read him¬†carefully)? One of his explicit aims in ‘The Problem of Social Cost’ (1960) was to correct an … More Coasean taxes and other energy economics stories

Applying Coase to wildlife preservation

Lynne Kiesling I loved seeing pictures a couple of weeks ago of an endangered Bengal tiger and her cubs from a hidden camera. Large predator wildlife that roam and are territorial often face reductions in their territory when humans move in; in the Bengal tiger territory in India, both traditional farming and the construction of … More Applying Coase to wildlife preservation

Coase, legal liability, and pesticide drift

Lynne Kiesling A ruling last week from Minnesota’s Court of Appeals provides an interesting case study in using common law and legal liability (a la Coase) in an environmental case. As summarized in the St. Cloud Times, the issue at hand is pesticide drift — when pesticide spray on one field is carried over to … More Coase, legal liability, and pesticide drift

Demsetz discusses Coase’s mistake on Pigou and social costs

Michael Giberson Last summer, Harold Demsetz spoke at the Property and Environment Research Center on Ronald Coase’s big mistake in “The Problem of Social Cost.” PERC has just posted the video. The article he is presenting is, “Fallacies in the Economic Doctrine of Externalities,” but I bet in the written article he doesn’t say, “what … More Demsetz discusses Coase’s mistake on Pigou and social costs

Ronald Coase interview

Michael Giberson Interview with Ronald Coase, on the occasion of the establishment of the Coase China Society, an effort to stimulate study and application of Coase’s ideas in China. Interview conducted by Wang Ning, a student of Coase’s now teaching at Arizona State University and co-author with Coase of the book How China Became Capitalist. … More Ronald Coase interview

Cole on Coase and cattle

Michael Giberson Arizona is re-thinking its open range law. Dan Cole, blogging at Law, Economics & Cycling, is reminded of Ronald Coase (and specifically Robert Ellickson’s law review article “Of Coase and Catttle“). Cole summarizes the situation: Arizona is an “open range” state, which means that cattle can roam at will. Ranchers do not have … More Cole on Coase and cattle