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Coase and Van Zandt on Lighthouses

Author

Listed:
  • William Barnett

    (Loyola University New Orleans, Louisiana)

  • Walter Block

    (Loyola University New Orleans, Louisiana)

Abstract

Mainstream economics maintains that ``public'' goods will not be provided (adequately) by free markets. Rather, if society is to have (efficient amounts of) public goods, government intervention is required. Traditionally, lighthouses, along with national defense, were held up as the quintessential examples of such public goods that require governmental intervention if they are to be provided (in optimal amounts). This changed, however, with Coase, who maintained and is widely credited with proving that, historically, the market (i.e., free enterprise) provided lighthouse services. Our thesis is that although Van Zandt showed Coase's claim to be mistaken on the basis of this valid criticism of Coase, Van Zandt erroneously concludes that private lighthouses were not historically operational. The truth of the matter, we aver, is that private lighthouses were indeed historically operational, and that although Van Zandt himself provides evidence for this claim, he fails to recognize it as such.

Suggested Citation

  • William Barnett & Walter Block, 2007. "Coase and Van Zandt on Lighthouses," Public Finance Review, , vol. 35(6), pages 710-733, November.
    • Handle: RePEc:sae:pubfin:v:35:y:2007:i:6:p:710-733
    DOI: 10.1177/1091142107302182
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    References listed on IDEAS

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    1. Van Zandt, David E, 1993. "The Lessons of the Lighthouse: "Government" or "Private" Provision of Goods," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 47-72, January.
    2. Elodie Bertrand, 2006. "The Coasean analysis of lighthouse financing: myths and realities," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 389-402, May.
    3. Elodie Bertrand, 2006. "The Coasean analysis of lighthouse financing: myths and realities," Post-Print hal-03507599, HAL.
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    Cited by:

    1. Candela, Rosolino A. & Geloso, Vincent, 2019. "Why consider the lighthouse a public good?," International Review of Law and Economics, Elsevier, vol. 60(C).
    2. Laurent Carnis, 2013. "The provision of lighthouses services: a political economy perspective," Public Choice, Springer, vol. 157(1), pages 51-56, October.
    3. Walter Block & William Barnett, 2009. "Coase and Bertrand on lighthouses," Public Choice, Springer, vol. 140(1), pages 1-13, July.
    4. Elodie Bertrand, 2009. "Empirical investigations and their normative interpretations: A reply to Barnett and Block," Public Choice, Springer, vol. 140(1), pages 15-20, July.
    5. Walter E. Block, 2017. "Radical Privatization: Oceans, Roads,Heavenly Bodies," Romanian Economic Business Review, Romanian-American University, vol. 12(2), pages 41-56, June.
    6. Rosolino A. Candela & Vincent J. Geloso, 2018. "The lightship in economics," Public Choice, Springer, vol. 176(3), pages 479-506, September.
    7. Rosolino A. Candela & Vincent Geloso, 2019. "Coase and transaction costs reconsidered: the case of the English lighthouse system," European Journal of Law and Economics, Springer, vol. 48(3), pages 331-349, December.
    8. Walter Block & Ivan Jankovic, 2016. "Tragedy of the Partnership: A Critique of Elinor Ostrom," American Journal of Economics and Sociology, Wiley Blackwell, vol. 75(2), pages 289-318, March.
    9. Jordan Reel & Walter E. Block, 2013. "Educational Vouchers: Freedom to Choose?," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(4), December.

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