Through friends <a href=" http://www.ccpirapuato.com ">ventolin</a> Coase's work originated in a market-based hostility to regulation and taxes. But the solution in "The Problem of Social Cost" requires a government to allocate rights and to establish courts to adjudicate them (and enforce payment). And it shows that – at least if government does the job properly of pricing the externalities – neither society nor businesses need suffer under a regulatory regime compared to the theoretical optimal outcome. More crucially, though, the Coase theorem provides one of the better explanations for how government might actually be useful.
