The chapter delves into how the guest's journey to study economics, reflecting on influential economists, and urging for more empirical work in the field. It discusses the nature of empirical work, the problem of social cost, a famous dinner discussion, and a pivotal moment leading to a shift in perspective. The chapter also debates concepts like the Coase Theorem, externalities, property rights, and challenges in experimenting on complex systems, emphasizing the importance of real-world applications in research.
Nobel Laureate Ronald Coase of the University of Chicago talks with EconTalk host Russ Roberts about his career, the current state of economics, and the Chinese economy. Coase, born in 1910, reflects on his youth, his two great papers, "The Nature of the Firm" and "The Problem of Social Cost". At the end of conversation he discusses his new book on China, How China Became Capitalist (co-authored with Ning Wang), and the future of the Chinese and world economies.