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The Coase Theorem Revisited: Implications for Economic Transition

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  • Tamara Todorova

Abstract

This paper supports the view expressed by other authors that Ronald Coase’s ideas are often misrepresented in the academic world. It restates some of Coase’s main findings with special emphasis on their relevance to processes taking place in Eastern Europe. The goal of this paper is to revisit Coasean theory, to prove that oftentimes it is misrepresented and misinterpreted and to show its relevance to some societies experiencing high transaction costs. The role of the legal system under high transaction costs is stressed in its importance to transitional economies experiencing staggeringly high transaction costs. This paper tries to shed light on the importance of transaction costs in the newly emerging markets and the respective role courts and the government should play in directing economic resources. Copyright International Atlantic Economic Society 2007

Suggested Citation

  • Tamara Todorova, 2007. "The Coase Theorem Revisited: Implications for Economic Transition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 189-201, June.
    • Handle: RePEc:kap:atlecj:v:35:y:2007:i:2:p:189-201
    DOI: 10.1007/s11293-007-9067-9
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    References listed on IDEAS

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    1. Edward Glaeser & Simon Johnson & Andrei Shleifer, 2001. "Coase Versus the Coasians," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 853-899.
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    9. Warren J. Samuels & Steven G. Medema & A. A. Schmid, 1997. "The Economy as a Process of Valuation," Books, Edward Elgar Publishing, number 1088.
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    Cited by:

    1. Tamara Todorova, 2011. "Adverse Effects of Transaction Costs in East European Economies," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 2(1).
    2. Teodor Sedlarski & Mina Bazoteva, 2012. "Application of the Economic Analysis of Law to the Regulation of the Drug Retail Market in Bulgaria," Yearbook of the Faculty of Economics and Business Administration, Sofia University, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria, vol. 10(1), pages 153-175, March.
    3. Teodor Sedlarski, 2009. "Transaction Costs in the Course of the System Transformation in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 35-55.
    4. Todorova, Tamara, 2022. "Оливър Уилямсън: Новатор На 20 Век И Основател На Новата Институционална Икономика [Oliver Williamson: an innovator of the 20th century and founder of the new institutional economics]," MPRA Paper 121077, University Library of Munich, Germany.

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    More about this item

    Keywords

    Coase theorem; Economy; Transaction costs; A22; D23; K10; P20;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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