Calculation and Equilibrium Problems in the Coase Theorem

Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 63-77, Spring 2011

20 Pages Posted: 31 May 2011 Last revised: 15 Mar 2014

See all articles by Nicolas Cachanosky

Nicolas Cachanosky

Metropolitan State University of Denver; American Institute for Economic Research

Date Written: January 21, 2011

Abstract

To analyze the feasibility of applying the Coase Theorem, this article uses two traditional arguments, economic calculation and non-neutral effects, found in the Austrian literature. This article argues that the efficiency calculation a judge undertakes is problematic and that his decision should not be considered neutral with respect to the general equilibrium (even with zero transaction costs). These problems imply serious challenges to the application of the Coase Theorem.

Keywords: Coase Theorem, calculation problem, transaction costs

JEL Classification: D28, P48, Q58

Suggested Citation

Cachanosky, Nicolas, Calculation and Equilibrium Problems in the Coase Theorem (January 21, 2011). Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 63-77, Spring 2011. Available at SSRN: https://ssrn.com/abstract=1855326

Nicolas Cachanosky (Contact Author)

Metropolitan State University of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

HOME PAGE: http://www.ncachanosky.edu

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

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