I promised last week that we’d have an interesting post on the “problem” of rent. Not sure about the interesting part, but here is the post nonetheless. First, a generic observation about property rights. For any economy to operate, we must have some institution of property rights that is reasonably well functioning. “Well-functioning” actually has […]
Category Archive for 'Property Rights'
It depends of course. A great application is here. HT to Owen O.
Or not. Saturday we linked to a “Sustainability” post about opinions on plastic bags. There is a hidden gem in the comments: and those of us who do not want to use them every time we shop will not be paying for them as an overhead cost in the price of goods A common argument […]
Each Spring the facilities crew at the U of R tirelessly reseeds all of the sides of sidewalks that have been destroyed by the winter plowing. And our enlightened students and staff totally respect that work. Here is the sidewalk along intercampus parking lot, just across from the library, looking North. You can see the […]
I assume some will find this in bad taste in light of last week’s tragedies in Boston. But just in case anyone was paying attention, we’re closing in on a dozen years since the WTC was destroyed and it’s rebuild is still not complete yet, so I find it hard to read notes that New […]
18) Suppose we take the precedent in the Boulston case seriously (btw: isn’t it interesting that Common Law can and does look back hundreds and hundreds of years for it?). What does that imply about the legal precedent and the moral one for instituting a carbon tax or using carbon permits for solving global warming? […]
If you ever get a chance, do try to spend a view days paddling some of the thousands of lakes and streams and ponds in the Adirondacks. New York State and private landowners in and around the park have done, in my view, a very nice job balancing the myriad public and private interests of […]
11) One of the other major mischaracterizations of the insights of Coase is the role that “transactions costs” play in promoting or preventing efficient outcomes. Does Coase ever argue that “transactions costs ARE zero?” Coase never argues that transactions costs ARE zero. It would be an absurd argument. Rather the insight is to imagine what […]
6) Why does Coase argue that “making the polluter” pay is the not automatically the correct way solve the “Problem of Social Costs?” Provide a simple illustration of the argument from one of the four case studies he presents (which means illustrate the scope for bargaining and the error/correctness in the courts’ reasoning in the […]
The theory of environmental economics can easily be traced back about 100 years to the work of A.C. Pigou who basically developed the principle of “Polluter Pays.” In other words, he identified the externalities problem in economics as one where actors do not bear the full costs of their actions. This is correct. But Pigou’s […]