Externalities, Markets, and Government Policy - Economic Review, Third Quarter 1996 - Dallas Fed
نویسنده
چکیده
structure of the problem at hand. In 1991, Ronald H. Coase received the Nobel prize for his work on the role of transaction costs in economics. His paper on “The Nature of the Firm” (Coase 1937) introduced transaction costs as the primary reason for the existence of firms. Coase pointed out that firms substitute an internal management structure for market transactions to eliminate the costs of negotiating, writing, and enforcing contracts. More than two decades later, his classic paper, “On the Problem of Social Costs,” (Coase 1960) revolutionized the way in which economists perceived market and nonmarket solutions to the problem of externalities. In this paper, Coase argued that the problem of externalities cannot be examined without looking at the institutional setting of the problem and the size of transaction costs. According to the Nobel committee, the latter paper is the most cited paper in economics in the years since its publication. His work has stimulated research in the areas of law and economics, antitrust economics, regulation, public choice, and the role of government in economic society. The purpose of this article is to offer an explanation of Coase’s contribution to the analysis of the role of government.
منابع مشابه
Welfare and the Locational Choices of New Immigrants - Economic Review, Second Quarter, 1997 - Dallas Fed
of the United States (Washington, D.C.: Government Printing Office). U.S. Bureau of Economic Analysis (various years), Survey of Current Business (Washington, D.C.: U.S. Department of Commerce). U.S. Bureau of Labor Statistics (various years), Employment and Earnings (Washington, D.C.: U.S. Department
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