The Problem of Social Cost

  title={The Problem of Social Cost},
  author={Ronald H. Coase},
  journal={The Journal of Law and Economics},
  pages={1 - 44}
  • R. Coase
  • Published 1 October 1960
  • Economics
  • The Journal of Law and Economics
THIS paper is concerned with those actions of business firms which have harmful effects on others. The standard example is that of a factory the smoke from which has harmful effects on those occupying neighbouring properties. The economic analysis of such a situation has usually proceeded in terms of a divergence between the private and social product of the far' ory, in which economists have largely followed the treatment of Pigou in The Economics of Welfare. The conclusions to which this kind… 

Theoretical Causes of the Problem of External Effects

The theoretical leakage of external effects in economic theory is revealed. The external effect is manifested in the form of material costs of third parties that are not directly involved in the

Social Costs and Benefits

  • A. Hillman
  • Economics
    Public Finance and Public Policy
  • 2019
Under current regulation, the added cost of gas from sources such as imported liquefied natural gas (LNG) is not necessarily borne by the same consumers that benefit from increased fuel supplies.

Housing and Transaction Costs

There is also the issue of how and to whom fees are paid. For instance, there are more bank fees in Croatia, whereas in Sweden more of the fees are paid to the state. On the other hand, Croatia is

The Use of Markets to Control Pollution

The primary purpose of this paper is to study the extent to which prices and markets can be employed as means towards efficient control of pollution. The model which is examined is, however,

Solving transportation externalities, economic approaches, and their risks

Abstract The impact of human activity on the environment is an ongoing concern not only in the natural sciences but also in economics. Special attention is focused on the transport system, which is

Welfare, Externalities, Public Goods and Happiness

This chapter is about welfare economics. After some considerations on the value judgements implicit in the notion of Pareto efficiency, the chapter explains why externalities and public goods are not

Regulation, competition, and the social control of business

In George Stigler’s (1971) economic theory of regulation, the primary motive of regulatory intervention is the promotion of private interests, not the promotion of the general welfare or efficiency

Theory of Shocks About States in Static and Dynamic Economics

The place of the state in the theory of shocks is predetermined by the increasing importance of the subjective component of the processes of self-movement of systemic integrities. The main problem is

The Significance of Public Goods in Market Failure Debates

Before the emergence of the neoclassical economic approach, the idea that market instabilities are temporary and markets are spontaneously able to reach equilibrium was prevalent. However, with the

The gig economy: a hypothetical contract analysis

Abstract Gig work and other flexible labour practices have been subject to unprecedented levels of attention recently. While this topic has attracted significant interest from employment lawyers, it


Mishan, The Meaning of Efficiency in Economics, 189

  • The Bankers' Magazine
  • 1960