It has to be a teaser because I want to emphasise the difference between advocacy and technical economics.
Supposing we decide that some sort of alleged “externality” has to be dealt with in some way. A large maori walks across the road and knocks on the door. The sound of drums can be heard and when the door opens the drumming is louder. The Maori tells the boys father that if he hears his son drumming again he is going to take the boy, and the drum kit, and he is going to stick the drumkit “Where the son don’t shine.” True story so far.
But from here on we will talk fantasy and hypotheticals. Supposing both the boy and his father are well-armed. And come from a very tight clan of Albanians, many who live on the block.
Clearly we have a problem here no matter what. And technically speaking it is a case where something produced on one persons property is being allowed to disturb a person on another property. So it is not the case that even a libertarian ought to be neutral about.
We will despatch hypothetically a number of dispute resolution experts so as to test what appears reasonable.
And our first candidate is Pigou-Club-Mankiw. How would Pigou-Club-Mankiw work this situation out?
Well perhaps the kid would now be locked into a tax. And that noise-tax would wind up being sent to Canberra. Such that the lunatic, Nick Gruen, could spend that money as some sort of idiots stimulus package. But is this a satisfying solution for all concerned and not just blood-sucker-central?
Well I said this was a teaser. And I won’t be saying too much else about it for awhile. But you may well want to run some angles past me.