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Coasean method: lessons from the farm

Published online by Cambridge University Press:  24 July 2014

DOUGLAS W. ALLEN
DOUGLAS W. ALLEN*
Affiliation:
Department of Economics, Simon Fraser University, Burnaby, Canada
*
*Email: [email protected].
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Abstract

Ronald Coase detested ‘blackboard economics’ and as a result was often criticized for being ‘against theory’. Coase has also been criticized for being overly descriptive in his institutional analysis. Here, I claim that Coase was both theoretical and interested in hypothesis testing. In order to do Coasean analysis, however, it is necessary to analyse a subject matter at the deep transaction level, given the definition of transaction costs. The rich level of detail required may give the impression of an absence of theory or testing. Here, I provide a number of real farm examples and contrast them with blackboard farm economics to make this point.

Type
Research Article
Information
Journal of Institutional Economics , Volume 11 , Issue 1 , March 2015 , pp. 93 - 110
Copyright
Copyright © Millennium Economics Ltd 2014 

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