Source: Foundation for Economic Education
by Sergio Martinez
“The great economic historian Robert Higgs once claimed that two of the most important papers an economist could read were Hayek’s ‘The Use of Knowledge in Society’ (1945) and Ronald Coase’s ‘The Problem of Social Cost.’ Although the ideas of Hayek and Coase were influential in the 20th century, it is difficult to claim that their lessons have been fully absorbed by contemporary economists. Ronald Coase published relatively little, but his contributions were so important that he received the Nobel Prize in Economics in 1991. As economist Carlos Rodriguez Braun would say, his ‘rate of return per page was spectacular.’ If Hayek helps us understand the importance of prices and competition, Coase delves into how transaction costs shape markets and the institutions in which they operate.” (01/15/25)