Zhang Wu Chang Economics

Author: Xiang Songze
Publisher:
Publish Date: 2005-11-01
Features: I firmly believe that the thinking method I employed in the article "The Problem of Social Cost" will ultimately change the structure of microeconomics. It must be admitted that when I wrote this article, I did not have such a far-reaching grand vision. It was only later, especially through the repeated discussions with Zhang Wu-chang in the 1960s, that I began to understand the significance of my article for general economic theory and became clear about what problems needed further in-depth research. – Coase, 1991 Nobel Economics Prize laureate
The transaction cost method I employed in the book "Institutions, Institutional Change and Economic Performance" should be appropriately named the University of Washington approach, with Zhang Wu-chang as its founder. – North, 1995 Nobel Economics Prize laureate
Who sparked the great wave of economic explanation? If we were to attribute it to a specific research or individual, I think it would be almost impossible. Looking around the world, at that time, there were many ambitious young people who were all using new analytical tools in appropriate scientific ways. If we really had to crown a winner, the champion in my mind is Zhang Wu-chang. –·, former chair of the Nobel Economics Prize Committee
Zhang Wu-chang came to the University of Washington in Seattle in 1969. In less than a year, we became close friends. Looking back now, I believe he was already the world’s best economist of property rights and transaction costs. Shortly after, I strongly felt Zhang Wu-chang’s pervasive magical charm and versatility. I lacked a comprehensive ideological framework, and Zhang Wu-chang’s way of thinking was just the perfect support I needed. – Basar, world-renowned economist and professor at the University of Washington
There was constant debate among Zhang Wu-chang’s teachers about who he truly belonged to. Coase said he taught Zhang Wu-chang about costs and externalities (which is why there are no externalities at all); Alchian said he taught Zhang Wu-chang about property rights; Demsetz said he taught Zhang Wu-chang about transaction costs and why utopian economics is useless. As for myself? I have to admit I didn’t teach him what comparative advantage is. I once asked him: Zhang Wu-chang, you already have so much, why do you still study economics? His answer was: Because I want to do better than everyone else in everything! – Hruschka, contemporary master of price theory and professor at the University of California, Los Angeles
The charm of Zhang Wu-chang is the charm of truth, the charm of the relentless pursuit of truth, the charm of the diverse phenomena of the real world, and the magical charm that economics should have. Zhang Wu-chang’s economics opens window after window for us, showing us how wonderful the world truly is, revealing how unproductive so-called knowledge is when based on mere assumptions, teaching us that ideological and value disputes have nothing to do with science, and showing us that scientific truth is closely related to daily life.