Ronald H. Coase > Quotes

“If you torture the data long enough, it will confess.”
― Ronald H. Coase, Essays on Economics and Economists

“But a theory is not like an airline or bus timetable. We are not interested simply in the accuracy of its predictions. A theory also serves as a base for thinking. It helps us to understand what is going on by enabling us to organize our thoughts. Faced with a choice between a theory which predicts well but gives us little insight into how the system works and one which gives us this insight but predicts badly, I would choose the latter, and I am inclined to think that most economists would do the same.”
― Ronald H. Coase, Essays on Economics and Economists

“An important reason may be that government at the present time is so large that it has reached the stage of negative marginal productivity, which means that any additional function it takes on will probably result in more harm than good…. If a federal program were established to give financial assistance to Boy Scouts to enable them to help old ladies cross busy intersections, we could be sure that not all the money would go to Boy Scouts, that some of those they helped would be neither old nor ladies, that part of the program would be devoted to preventing old ladies from crossing busy intersections, and that many of them would be killed because they would now cross at places where, unsupervised, they were at least permitted to cross.”
― Ronald Coase

“if you torture the data long enough, it will confess to anything”
― Ronald H. Coase

“The time has surely gone in which economists could analyze in great detail two individuals exchanging nuts for berries on the edge of the forest and then feel that their analysis of the process of exchange was complete, illuminating though this analysis may be in certain respects.”
― Ronald H. Coase

“Maandag stierf hij, 102 jaar oud: Ronald Coase, de man die zijn afkeer van de wiskundige modellen in de economie aldus formuleerde: 'Als je de gegevens maar lang genoeg martelt, zullen ze toegeven'.”
― Ronald Coase

“I believe that human preferences came to be what they are in those millions of years in which our ancestors (whether or not they can be classified as human) lived in hunting bands and were those preferences which, in such conditions, were conducive to survival. It may be, therefore, that ultimately the work of sociobiologists (and their critics) will enable us to construct a picture of human nature in such detail that we can derive the set of preferences with which economists start. And if this result is achieved, it will enable us to refine our analysis of consumer demand and of other kinds of behaviour in the economic sphere.”
― Ronald H. Coase, The Firm, the Market, and the Law