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Quotation of the Day…

… is from page 243 of Deirdre McCloskey’s 1997 article “The Good Old Coase Theorem and the Good Old Chicago School: A Comment on Zerbe and Medema” (link added):

[Ronald] Coase is forever saying that this or that proposal for a public policy entails knowing things that no economist can in fact know. He claims, with considerable empirical evidence, that in many cases laissez faire will be in practice better than what we will get from actual governments – though neither is perfect (we live in a second-best world, that is, a world of transaction costs).