The Capitalism and Freedom in the Twenty-First Century Podcast Property Rights and the UCLA School of Economics with David Henderson
Nov 20, 2025
Join economist David Henderson, a research fellow at the Hoover Institution and emeritus professor, as he dives into his journey in economics. He shares insights on property rights and the profound influence of thinkers like Armen Alchian and Harold Demsetz. Henderson discusses the balance between market and government failure, reflecting on his experiences at the Reagan Council of Economic Advisers and his shift to popular writing. With engaging anecdotes, he emphasizes the importance of communicating economic concepts to a broader audience.
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From Math To Economics After Demsetz
- David Henderson recounts discovering economics via Harold Demsetz's talks, which sparked his move from math to economics.
- He traced influences like Armen Alchian and applied them to his graduate choices, ultimately choosing UCLA.
The Nirvana Approach Critique
- The Nirvana approach compares imperfect markets to an idealized government solution without examining government incentives.
- Demsetz identified three fallacies in this reasoning: the grass is greener, people could be different, and the free lunch fallacies.
Property Rights Shape Behavior
- Demsetz argued property-rights rules let economists predict behavior by specifying incentives.
- Clear property regimes can solve problems like pollution or commons management by changing incentives.
