| Popis: |
This paper is concerned with the resolution of certain type of problem of social cost such as urban housing problem facing developing countries. The inherent characteristics of Pigou Approach and Coase Approach enable their potentials to solve the problem concerned but neither approach alone is powerful enough to lead to a desirable result. The complementarity of these two approaches motivates us to integrate them to form a Coase-Pigou Approach to resolve the concerned problem. As an illustration of the application of the Coase-Pigou Approach, we study the Hong Kong experience in resolving the urban housing problem and gain some valuable insights. Moreover, when revisiting the argument regarding the problem of straying cattle destroying crops on neighboring land, we find that the suggestion provided by Coase does not seem feasible, which may threaten the validity of the Coase Theorem. We sincerely hope researchers to review carefully the validity and relevancy of our argument. |
