|
||||
|
||||
The Value/Fact Distinction: Coase's Theorem Unifies Normative and Positive EconomicsFrank J. TiplerTulane University January 15, 2007 Abstract: I show that in a true Coasean world - a world with no transaction costs - there would be no disagreement on moral questions. There would be no disagreement on what the appropriate distribution of income should be. There would be no disagreement on the question of capital punishment or abortion. If the government tried to re-distribute income contrary to the no-transaction cost ideal, then in a Coasean world, the beneficiaries would return the money to those from whom it was taken by taxation. Empirical studies of a near-Coasean economy show this predicted return occurring. Thus disagreements on values are actually disagreements over facts. I shall argue that the Coase Theorem itself suggests a moral rule: act to minimize transaction costs.
Number of Pages in PDF File: 31 Keywords: Coase Theorem, nomative economics, positive economics, social norms, information cost, transaction cost, income distribution, value/fact distinction JEL Classification: A1, A12, A13, D31, K00, K23, K32, L82 working papers seriesDate posted: January 29, 2007Suggested CitationContact Information
|
|
||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.407 seconds