I tend to regard the Coase theorem as a stepping stone on the way to an analysis of an economy with positive transaction costs.
Sentiment: POSITIVE
I'm no enthusiast for the Coase Theorem. I don't like it, but it's widely used.
This paper was one of my digressions into abstract economics.
Economists often like startling theorems, results which seem to run counter to conventional wisdom.
The whole intention of empirical economics is to force theory down to Earth.
But my shift to the serious study of economics gradually weakened my belief in Major Douglas's A+B theorem, which was replaced in my thought by the expression MV = PT.
I understand that finance can be very complex.
I think I have met nearly all the Laureates in Economics. Among the few I haven't met, I suppose I'd most like to meet Ronald Coase because of his legendary power to persuade his colleagues of the validity of the Coase Theorem.
There is no single theory that is used in economics that considers the finite nature of resources. It's shocking.
You wouldn't think there was a need for a Coase Theorem, really.
Ronald Coase, in his classic 1937 paper on 'The Nature of the Firm,' was the first to bring the concept of transaction costs to bear on the study of firm and market organization.