The law of property determines who owns something, but the market determines how it will be used.
Ronald CoaseRead
During the two centuries since the publication of 'The Wealth of Nations,' the main activity of economists, it seems to me, has been to fill the gaps in Adam Smith's system, to correct his errors and to make his analysis vastly more exact.
Interpretation
What this quote means
Economists have spent centuries refining and correcting Adam Smith's original theories in 'The Wealth of Nations.'
Ronald Coase suggests that the work of economists over the last two hundred years has focused on addressing the shortcomings and inaccuracies in Adam Smith's foundational economic theories presented in 'The Wealth of Nations.' This ongoing effort emphasizes the evolution of economic thought and the continued relevance of Smith's ideas in shaping modern economic analysis.
Themes
EconomicsAdam SmithWealth Of NationsTheoryAnalysis
In practice
Example use cases
In a lecture on the evolution of economic thought, one might use this quote to highlight the ongoing influence of Adam Smith.
More from Ronald Coase
All quotes βRoughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.
Ronald CoaseRead
We must first note that economic factors are taken into account in a world in which ignorance, prejudice, and mental confusion, encouraged rather than dispelled by the political organization, exert a strong influence on policy making.
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