http://www.theguardian.com/commentisfree/2013/sep/06/ronald-coase-chicago-school-economist-died


[snip]
Coase was praised for writing about the real world, for example his
assertion that firms grow in relation to the cost of doing business.
It's a theory, and attracted attention because so little economics is
about real existing companies and the highly imperfect markets in
which they operate. But Coase was careful never to frame his theory to
make it empirically testable. We can't take a Google or a Virgin and
plot when and where their transaction costs influenced, say, their
decisions to take over Nokia or to lobby Tory ministers for a larger
share of NHS contracts.

[snip]

Coase, they say, was influential. But like cites like. He won a Nobel
prize but by what transparent standard is a committee of the Swedish
academy the sole arbiter of intellectual merit, or itself unswayed by
beliefs and world views? In economics the line between scholarship and
ideology is not just fine, but carefully screened from prying eyes.
[snip]
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