Open AccessAt the Origins of Neo-institutionalism: Ronald Coase
Author(s) -
Рустем Махмутович Нуреев
Publication year - 2021
Publication title -
review of business and economics studies
Language(s) - English
Resource type - Journals
eISSN - 2311-0279
pISSN - 2308-944X
DOI - 10.26794/2308-944x-2020-8-4-6-18
Subject(s) - coase theorem , transaction cost , institutionalism , economics , social cost , neoclassical economics , property rights , subsidy , institutional economics , new institutionalism , externality , new institutional economics , market economy , law , microeconomics , political science , politics
The article contains the analysis of the views of the Nobel laureate in economics Ronald Coase (1910–2013) as the founder of neo-institutionalism. it provides a comparative description of the “old” and “new” institutionalism and shows the relationship and difference between neoclassicism and neo‑institutionalism. I analysed in detail the most famous articles of Coase and, first of all, “The Nature of the Firm” and “The Problem of Social Costs”. in these works, Coase showed that in the absence of transaction costs there is no economic novelty for the existence of a firm, in the second — that in the lack of transaction costs the legal system does not matter. With an exact specification of property rights, the market economy itself is able to cope with environmental pollution without resorting to government intervention, adjusting taxes and subsidies. The article shows the history of lighthouses in economic theory. Usually, the lighthouse is listed as a purely public good. Ronald Coase shows that even a public good — like lighthouses —was paid for by shipowners. The last part is devoted to essays on economics and economists.