On Coase and COVID-19

Allen, D.W.E, Berg, C., Davidson, S., Potts, J. (2022) 'On Coase and COVID-19', European Journal of Law and Economics.

19 Pages Posted: 26 Apr 2020 Last revised: 26 Apr 2022

See all articles by Darcy W E Allen

Darcy W E Allen

RMIT University

Chris Berg

RMIT University

Sinclair Davidson

RMIT University

Jason Potts

RMIT University

Date Written: April 21, 2022

Abstract

From an epidemiological perspective, the COVID-19 pandemic is a public health crisis. From an economic perspective, it is an externality and a social cost. Strikingly, almost all economic policy to address the infection externality has been formulated within a Pigovian analysis of implicit taxes and subsidies directed by a social planner drawing on social cost-benefit analysis. In this paper we examine the alternative economic methodology of the externality. We seek to understand how an exchange-focused and institutional analysis provides a better understanding of how to minimise social cost. Our Coasean framework allows us to further develop a comparative institutional analysis of the pandemic response.

Keywords: COVID-19, Coase theorem, externality

JEL Classification: D73, H23

Suggested Citation

Allen, Darcy and Berg, Chris and Davidson, Sinclair and Potts, Jason, On Coase and COVID-19 (April 21, 2022). Allen, D.W.E, Berg, C., Davidson, S., Potts, J. (2022) 'On Coase and COVID-19', European Journal of Law and Economics. , Available at SSRN: https://ssrn.com/abstract=3585509 or http://dx.doi.org/10.2139/ssrn.3585509

Darcy Allen

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000
Australia

Chris Berg (Contact Author)

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

RMIT University ( email )

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