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What method did Coase advocate for to solve the "blackboard" problem of economics?

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Answer

The "blackboard" problem is the challenge of demonstrating the existence of market failure due to externalities using deductive reasoning. Ronald Coase proposed that empirical studies are a more effective way to address this issue. By examining real-world scenarios and collecting data on the costs and benefits associated with externalities, economists can gain insights into the extent and impact of market failures and develop appropriate policies to address them.
Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate

Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate

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