Clubs, Coase, and the role of government

As Ronald Coase and others have shown, deducing the appropriate role of government in economy requires a comparative institutions approach. Trying to generalize from oversimplified specifications regarding transaction costs, according whether exclusion is possible or not, futile exercise. An alternative Ostrom matrix distinguish private, club, collective consumption goods their technical characteristics, specifically degree congestabiilty. The other box matrix, “common pool” resources, can also be usefully analyzed club perspective. Spillover are spatial clubs. Lastly, version theorem offered, which provides foundation institutional analysis.