Quarterly Journal of Austrian Economics
Calculation and Equilibrium Problems in the Coase Theorem
Volume 14, Number 1 (Spring 2011)
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.
Cite This Article
Cachanosky, Nicolás. "Calculation and Equilibrium Problems in the Coase Theorem." The Quarterly Journal of Austrian Economics 14, No. 1 (Spring 2011): 63–77.