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

Appreciation of Ronald Coase

Ronald Coase passed away yesterday, four months shy of his 103rd birthday and working right up to the end. An archive search here shows how deeply Coase’s work influences Mike’s and mine, and we are not alone — Coase was one of the most influential economists of the 20th century, an influence made even more … More Appreciation of Ronald Coase

Are Property Rights Now More Clearly Defined for Organic Farmers in Minnesota?

Michael Giberson The United States Supreme Court chose to let stand a Minnesota Supreme Court decision concerning the rights of organic farmers exposed to pesticide drift from neighboring conventional farms. In the case Johnson v. Paynesville Farmers Union Cooperative Oil Co., the organic-farming Johnsons had sued conventional-farming Paynesville for damages after pesticide drift from Paynesville’s farm … More Are Property Rights Now More Clearly Defined for Organic Farmers in Minnesota?

Minnesota Supreme Court Rules Pesticide Drift is Not a Trespass, but Might Be a Nuisance

Michael Giberson The Minnesota Supreme Court ruled today that pesticide drifting across property lines onto an organic farmer’s crop does not constitute a trespass under state law. The court dismissed the trespass claim as well as accompanying claims asserting nuisance and negligence under laws that govern organic farming. The organic farming laws regulate what a … More Minnesota Supreme Court Rules Pesticide Drift is Not a Trespass, but Might Be a Nuisance

Praise for a New York Times Article on Natural Gas Fracking (or, How Property Rights Help Mitigate Potential Environmental Harms)

Michael Giberson I’m writing in praise of a New York Times article on natural gas fracking. Yes, really! Even more surprising, I’m writing in praise of a New York Times on fracking written by Ian Urbina. Yes, really! What is this marvel, you ask? I answer, “Rush to Drill for Natural Gas Creates Conflicts With Mortgages.” What is so … More Praise for a New York Times Article on Natural Gas Fracking (or, How Property Rights Help Mitigate Potential Environmental Harms)

A Coasian Look at Pesticide and Genetic Drift

Michael Giberson A few weeks back Lynne drew attention to an interesting property dispute between neighboring farmers in Minnesota, currently the subject of legal action (see news summary here, related court decision here). In brief, the issue is pesticide drift from conventionally farmed crops onto a neighboring organic farm, and whether the organic farm can … More A Coasian Look at Pesticide and Genetic Drift

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

Reversing the Seaway Pipeline

Michael Giberson The Seaway Pipeline is built to carry crude oil from the Gulf Coast to Cushing, Oklahoma, but with the current price differential between crude oil at the coast and crude oil at Cushing, each barrel delivered on the pipeline loses about $10-15 of value. The Streetwise Professor does a little back of the … More Reversing the Seaway Pipeline

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