Wednesday, October 19, 2016

Noah Smith — An Econ Test Question We Shouldn't Get Wrong


Transaction costs. 

This is a big one to miss. Econometric models generally ignore it for tractability even though Ronald Coase receive the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for pointing it out in his work on the firm.

Bloomberg View
An Econ Test Question We Shouldn't Get Wrong
Noah Smith | Bloomberg View columnist

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