Are economic exchanges actually costless?
Economic theory traditionally assumes that economic exchanges–buying and selling–are costless activities. Research into the economic history of transaction costs between 1870 and 1970 in the United States, however, shows that transaction costs are actually a significant part of economic activity. Furthermore, transaction costs have been a steadily growing part of the American economy.
Why Do Economists Use Advanced Math Instead of Plain English to Communicate?
Economists used to communicate without using any math at all. They relied on clear thinking and plain English. A fantastic example of this is Ronald Coase’s 1937 essay on the nature of the firm. Economists should still rely on clear thinking and present their thoughts and research findings using plain English. No matter how technical, […]
