Question
How will "Coasean growth" be measured?
Answer
I don't yet have a good idea, but Gregory Rader I think has taken a very important preliminary step in his recent post "Unifying the Value Universe."
http://onthespiral.com/unifying-...
Read the post to get a sense of how to parse this diagram. The x-axis shows relatedness between transacting parties, and is a relatively obvious key variable. What is not obvious is the choice of refinement, the measure of how "polished" or complete the value exchange is, as the second most important variable. This is Greg's key insight, that refinement is central to the problem (hint at why refinement is central: "standardization" is an important special case of refinement).
The left half-plane involves de-personalized notions of exchange and trust. The right half-plane involves personalized ones.
By constructing measures of growth that comprehend all 4 quadrants, you will naturally get a personalized measure of wealth, income and growth. You can then possibly use that to bootstrap measures of wealth and capital at the level of nations and corporations.
Note: I plan to meet up with Greg in a couple of weeks (approx week of 7/25/11) and couchsurf at his place in Oakland. I hope we can work on this together and make more progress. If any of you think you have some interesting new insights to share here, and/or have expertise in subjects like firm-size distribution/transaction-cost economics, and are in the area, message either of us, and we can perhaps set up a meetup.
http://onthespiral.com/unifying-...
Read the post to get a sense of how to parse this diagram. The x-axis shows relatedness between transacting parties, and is a relatively obvious key variable. What is not obvious is the choice of refinement, the measure of how "polished" or complete the value exchange is, as the second most important variable. This is Greg's key insight, that refinement is central to the problem (hint at why refinement is central: "standardization" is an important special case of refinement).
The left half-plane involves de-personalized notions of exchange and trust. The right half-plane involves personalized ones.
By constructing measures of growth that comprehend all 4 quadrants, you will naturally get a personalized measure of wealth, income and growth. You can then possibly use that to bootstrap measures of wealth and capital at the level of nations and corporations.
Note: I plan to meet up with Greg in a couple of weeks (approx week of 7/25/11) and couchsurf at his place in Oakland. I hope we can work on this together and make more progress. If any of you think you have some interesting new insights to share here, and/or have expertise in subjects like firm-size distribution/transaction-cost economics, and are in the area, message either of us, and we can perhaps set up a meetup.