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The Coase theorem is a wonderful antidote for many forms of modern stress, from the [[stock market]] to personal setbacks.  The theorem emphasizes the irrelevancy of the limited past compared with the unlimited opportunities of the future.

The Coase theorem is a wonderful antidote for many forms of modern stress, from the [[stock market]] to personal setbacks.  The theorem emphasizes the irrelevancy of the limited past compared with the unlimited opportunities of the future.

This [[Nobel Prize]]-winning theorem confirms that everyone has an equal opportunity for accomplishing good, regardless of property ownership, as demonstrated by the [[Bible]].  This insight relates directly to a full understanding of the [[Kingdom of God]] in the [[New Testament]].

This [[Nobel Prize]]-winning theorem confirms that everyone has an equal opportunity to accomplish good, regardless of property ownership, as demonstrated by the [[Bible]].  This insight relates directly to a full understanding of the [[Kingdom of God]] in the [[New Testament]].

In economic terms, the Coase theorem states that if property rights are well-defined and [[transaction costs]] (including costs of negotiating) are zero or negligible, then the most efficient economic activity will occur regardless of who initially owns the property rights.  Negotiation and market transactions will ensure optimal allocation of property.  Simply put, '''''it means "build a better mousetrap, and the world will beat a path to your door,"'''''<ref>The phrase is attributed to [[Ralph Waldo Emerson]], who [https://www.americanheritage.com/better-mousetrap said something similar].</ref> no matter who or where you are.  This is similar to the [[Bible|biblical]] "cast your net on the other side of the boat" that garnered [[infinity|infinite]] wealth.<ref name="Net">''See, e.g.'', [[Luke 1-8 (Translated)#5:4|Luke 5:4-7]]; [[John 15-21 (Translated)#21:6|John 21:6-7]].</ref>  This theorem also echoes the biblical exhortation, “No one who puts his hand to the plow and looks back is fit for the [[kingdom of God]].”<ref>Luke 9:62 ([[HCSB]]).</ref>  ''See also'' the parable of the barren tree, Luke 13:9<ref>https://bible.knowing-jesus.com/Luke/13/9</ref>; John 15:2; Hebrews 6:7.

In economic terms, the Coase theorem states that if property rights are well-defined and [[transaction costs]] (including costs of negotiating) are zero or negligible, then the most efficient economic activity will occur regardless of who initially owns the property rights.  Negotiation and market transactions will ensure the optimal allocation of property.  Simply put, '''''it means "build a better mousetrap, and the world will beat a path to your door,"'''''<ref>The phrase is attributed to [[Ralph Waldo Emerson]], who [https://www.americanheritage.com/better-mousetrap said something similar].</ref> no matter who or where you are.  This is similar to the [[Bible|biblical]] "cast your net on the other side of the boat" that garnered [[infinity|infinite]] wealth.<ref name="Net">''See, e.g.'', [[Luke 1-8 (Translated)#5:4|Luke 5:4-7]]; [[John 15-21 (Translated)#21:6|John 21:6-7]].</ref>  This theorem also echoes the biblical exhortation, “No one who puts his hand to the plow and looks back is fit for the [[kingdom of God]].”<ref>Luke 9:62 ([[HCSB]]).</ref>  ''See also'' the parable of the barren tree, Luke 13:9<ref>https://bible.knowing-jesus.com/Luke/13/9</ref>; John 15:2; Hebrews 6:7.

Past and present entitlements are nearly irrelevant to future activity, confirming the admonition of [[Luke 9-16 (Translated)#9:62|Luke 9:62]] not to look back at the past.  If a parcel of property is best used as a restaurant, a park, a library, or a school, it will eventually find that use no matter who owns it or what its prior uses were.  The Coase theorem states that the property will adopt its most productive use immediately, in the absence of transaction costs.  It confirms parables in the [[Bible]] about the hidden proximity of [[infinite]] happiness.<ref name="Net"/>

Past and present entitlements are nearly irrelevant to future activity, confirming the admonition of [[Luke 9-16 (Translated)#9:62|Luke 9:62]] not to look back at the past.  If a parcel of property is best used as a restaurant, a park, a library, or a school, it will eventually find that use no matter who owns it or what its prior uses were.  The Coase theorem states that the property will adopt its most productive use immediately, in the absence of transaction costs.  It confirms parables in the [[Bible]] about the hidden proximity of [[infinite]] happiness.<ref name="Net"/>

The Coase theorem is also a powerful antidote against the media, which falsely portrays some people as being more important than others.  Under the Coase theorem equal opportunity is available to all, and there is no greater influence based on title, position, or wealth.  The Coase theorem is consistent with the concept of the "[[best of the public]]" and the prohibition in the [[U.S. Constitution]] against nobility.

The Coase theorem is also a powerful antidote against the media, which falsely portrays some people as being more important than others.  Under the Coase theorem, equal opportunity is available to all, and there is no greater influence based on title, position, or wealth.  The Coase theorem is consistent with the concept of the "[[best of the public]]" and the prohibition in the [[U.S. Constitution]] against nobility.

This simple theorem, first published in a 1960 paper<ref>Ronald H. Coase, ''The Problem of Social Cost'', 3 J. Law & Econ. 1 (1960)</ref> by [[Ronald Coase]] who won the Nobel Prize for Economics for this in 1991, has powerful implications for economics, law, politics, and even [[Christianity]].  This theorem reinforces teachings of [[Jesus]], such as the parable of the sprouting seed,<ref>[[Mark 1-8 (Translated)#4:26|Mark 4:26-29]].</ref> and supports [[conservative]] interpretations of the [[Chicago School of Economics]].<ref>The Coase theorem can also be considered the "[[invisible hand]]" on steroids.</ref>

This simple theorem, first published in a 1960 paper<ref>Ronald H. Coase, ''The Problem of Social Cost'', 3 J. Law & Econ. 1 (1960)</ref> by [[Ronald Coase]] who won the Nobel Prize for Economics for this in 1991, has powerful implications for economics, law, politics, and even [[Christianity]].  This theorem reinforces teachings of [[Jesus]], such as the parable of the sprouting seed,<ref>[[Mark 1-8 (Translated)#4:26|Mark 4:26-29]].</ref> and supports [[conservative]] interpretations of the [[Chicago School of Economics]].<ref>The Coase theorem can also be considered the "[[invisible hand]]" on steroids.</ref>

The Coase theorem proves the availability of infinite opportunities to all who are productive.  This is helpful to understanding paradoxical miracles and parables.  For example, the [[Multiplication of the loaves]] is straightforward example of supplies (food) becoming available to further the most productive activity (spreading the [[Gospel]]).  The otherwise baffling [[Parable of the Vineyard Workers]], whereby workers who toil merely at the end the day are paid as much as those who worked the full day, is logical under the Coase Theorem because the owner needed the work done and thus was willing to overpay some for it. The most productive use of capital in that parable was to "overpay" for the late-arriving workers.

The Coase theorem proves the availability of infinite opportunities to all who are productive.  This is helpful in understanding paradoxical miracles and parables.  For example, the [[Multiplication of the loaves]] is a straightforward example of supplies (food) becoming available to further the most productive activity (spreading the [[Gospel]]).  The otherwise baffling [[Parable of the Vineyard Workers]], whereby workers who toil merely at the end of the day are paid as much as those who worked the full day, is logical under the Coase Theorem because the owner needed the work done and thus was willing to overpay some for it. The most productive use of capital in that parable was to "overpay" for the late-arriving workers.

'''''This theorem also illustrates the primacy of the future over the past'''''.  Setbacks or windfalls are rarely as important as they first seem, because the Coase theorem teaches that optimal activity will occur regardless of who owns rights.  The greatest [[chess]] player, Magnus Carlsen, is so good because he can "let go" of strategy and reevaluate options with every new board configuration during a game.  '''''Lottery winners are almost never better off in the long run, and the Coase theorem predicts that paradoxical result'''''.

'''''This theorem also illustrates the primacy of the future over the past'''''.  Setbacks or windfalls are rarely as important as they first seem, because the Coase theorem teaches that optimal activity will occur regardless of who owns rights.  The greatest [[chess]] player, Magnus Carlsen, is so good because he can "let go" of strategy and reevaluate options with every new board configuration during a game.  '''''Lottery winners are almost never better off in the long run, and the Coase theorem predicts that paradoxical result'''''.

The implications in law are that the best a judge can do for the economy as a whole is to minimize transaction costs, such as bureaucracy.  Court decisions that impose additional procedural obligations, such as ''[[Goldberg v. Kelly]]'' (1969), can only detract from overall wealth and efficient economic behavior.  The Coase theorem implicitly holds that many of the legal attempts to improve the economy are illusory, because there is no way to improve over the combination of clear legal entitlements and no government interference.

The implications in law are that the best a judge can do for the economy as a whole is to minimize transaction costs, such as bureaucracy.  Court decisions that impose additional procedural obligations, such as ''[[Goldberg v. Kelly]]'' (1969), can only detract from overall wealth and efficient economic behavior.  The Coase theorem implicitly holds that many of the legal attempts to improve the economy are illusory because there is no way to improve over the combination of clear legal entitlements and no government interference.

The implication in economics is that regulations that increase transaction costs are harmful, and the best that government can do is to clarify property rights and lower transaction costs. Regulatory attempts to correct negative [[externalities]], which some consider to be a type of [[market failure]], will add inefficiencies if the regulations increase transaction costs.

The implication in economics is that regulations that increase transaction costs are harmful, and the best that the government can do is to clarify property rights and lower transaction costs. Regulatory attempts to correct negative [[externalities]], which some consider to be a type of [[market failure]], will add inefficiencies if the regulations increase transaction costs.

The implications in politics are that, in a free society, it is almost irrelevant who has wealth and who does not with respect to economic activity.  Useful or desired economic activity will occur regardless of who owns property or wealth.  A list of the wealthiest individuals (Forbes 500) is meaningless, as wealth will flow to efficient activity regardless of who controls the money.

The implications in politics are that, in a free society, it is almost irrelevant who has wealth and who does not with respect to economic activity.  Useful or desired economic activity will occur regardless of who owns property or wealth.  A list of the wealthiest individuals (Forbes 500) is meaningless, as wealth will flow to efficient activity regardless of who controls the money.

== Future v. Past ==

== Future v. Past ==

The Coase theorem proves that the future governs the present, and the past has little or no significance.  The assignment of rights or wealth, which is in the past, is virtually irrelevant to the productivity of activity today, which is dictated by future transactions.  In this sense the Coase theorem confirms a key aspect of [[Christianity]], a religion focused on the future far more than the past.

The Coase theorem proves that the future governs the present, and the past has little or no significance.  The assignment of rights or wealth, which is in the past, is virtually irrelevant to the productivity of activity today, which is dictated by future transactions.  In this sense, the Coase theorem confirms a key aspect of [[Christianity]], a religion focused on the future far more than the past.

In this sense the Coase theorem embraces the concept of [[infinity]], by which the future has infinitely more opportunities and power than the past.

The Coase theorem embraces the concept of [[infinity]], by which the future has infinitely more opportunities and power than the past.

== Forgiveness ==

== Forgiveness ==

== Excuses? ==

== Excuses? ==

The Coase theorem has remarkable power in eliminating excuses for unproductive activity.  Transaction costs are the only real obstacle to efficient, productive activity.  Coining a famous saying, anyone of any means or background might invent a better mousetrap, and then the entire world will beat a path to his door.  There is no real excuse for not realizing full potential or opportunity, except perhaps transaction costs, and all should agree to reduce or eliminate those.

The Coase theorem has remarkable power in eliminating excuses for unproductive activity.  Transaction costs are the only real obstacle to efficient, productive activity.  Coining a famous saying, anyone of any means or background might invent a better mousetrap, and then the entire world will beat a path to his door.  There is no real excuse for not realizing the full potential or opportunity, except perhaps transaction costs, and all should agree to reduce or eliminate those.

== Markov chain ==

== Markov chain ==

== Infinity and zero ==

== Infinity and zero ==

The Coase theorem highlights the benefits of [[infinity]] and [[zero]], the insignificance of what lies in between.  Under the Coase theorem, anyone can go from zero to infinity by taking an optimal approach.  In this sense it reinforces the many [[parable]]s and examples in the [[New Testament]], such as the miraculous catch of fish described at Luke 5:1-10.

The Coase theorem highlights the benefits of [[infinity]] and [[zero]], the insignificance of what lies in between.  Under the Coase theorem, anyone can go from zero to infinity by taking an optimal approach.  This reinforces the many [[parable]]s and examples in the [[New Testament]], such as the miraculous catch of fish described in {{bibleref|Luke|5|1-10}}.

== Aesop's Fables ==

== Aesop's Fables ==

Federal district judge Milton Shadur observed the following in a decision when he presided over a case as part of the U.S. Court of Appeals for the Seventh Circuit:<ref>''Coltman v. Commissioner'', 980 F.2d 1134, 1136-37 (7th Cir. 1992)</ref>

Federal district judge Milton Shadur observed the following in a decision when he presided over a case as part of the U.S. Court of Appeals for the Seventh Circuit:<ref>''Coltman v. Commissioner'', 980 F.2d 1134, 1136-37 (7th Cir. 1992)</ref>

{{cquote|It provides a classic illustration of the Coase Theorem, which has earned Professor Ronald Coase a long-belated but much-deserved Nobel Prize: So long as the rule of law is known when parties act, the ultimate economic result is the same no matter which way the law has resolved the issue.}}

{{cquote|It provides a classic illustration of the Coase Theorem, which has earned Professor Ronald Coase a long-belated but much-deserved Nobel Prize: So long as the rule of law is known when parties act, the ultimate economic result is the same no matter which way the law has resolved the issue.}}

In general, however, [[liberal]]-leaning courts completely ignore the Coase theorem.  It is cited in only 12 (out of millions) of court decisions by the federal and state judiciaries, and most of those citations are without discussion of it and merely to articles which contain it in their titles.

In general, however, [[liberal]]-leaning courts completely ignore the Coase theorem.  It is cited in only 12 (out of millions) of court decisions by the federal and state judiciaries, and most of those citations are without discussion of it and merely to articles that contain it in their titles.

== Pareto Optimal ==

== Pareto Optimal ==

== Corollary ==

== Corollary ==

A corollary is the [[Widow's Mite]] at {{bibleref|Mark|12|41–44}} and {{bibleref|Luke|21|1–4}}, whereby maximum effort by widow in making a contribution at a particular time is considered to count for more than larger contributions from excess funds by others.

A corollary is the [[Widow's Mite]] at {{bibleref|Mark|12|41–44}} and {{bibleref|Luke|21|1–4}}, whereby maximum effort by a widow in contributing at a particular time is considered to count for more than larger contributions from excess funds by others.

== References ==

== References ==