HONG KONG ( Project Syndicate) – In 1960, the Nobel laureate economist Ronald H. Coase introduced the “problem of social cost”: human activities often have negative externalities, so individual rights cannot be absolute. Institutions must intervene.
There is no better example of this dynamic than the COVID-19 crisis.
While virtually every country has suffered as a result of the pandemic, some have done much better than others. Whereas some have reduced COVID-19 cases to near zero, others have had steadily climbing infection and death rates for months.
As the late Nobel laureate Ronald H….