Property Rights and the UCLA School of Economics

Quick Overview

Hoover Research Fellow David Henderson recounts his early career path from studying mathematics in Canada to joining the Hoover Institution, detailing how an influential paper by Kenneth Arrow on property rights and government intervention spurred his interest in economics and ultimately led him to a position advising on policy at the Hoover Institution.

Key Points: David Henderson began his academic journey studying mathematics in Canada, even skipping a grade and graduating with a three-year degree at age 19. His initial interest in economics was sparked by reading Kenneth Arrow's highly influential paper on property rights and government intervention, titled 'The Tragedy of the Commons.' Henderson sent his critique of Arrow's paper to the Journal of Law and Economics and received early encouragement from economists like Marty Feldstein, John Cogan, and Larry Summers. He ultimately took a position at the Cato Institute, writing articles that defended free markets against government intervention narratives, such as those concerning minimum wage. His work was published frequently in the Journal of Law and Economics, and he later moved to the University of Chicago for his Ph.D., where he was influenced by economists like Arnold Harberger and Gary Becker. Henderson's early work was instrumental in challenging narratives that assumed government intervention was always superior to free markets, particularly regarding environmental and industrial policy.

Context: This segment of the Hoover Institution podcast, hosted by Jon Hartley, features an interview with Hoover Research Fellow David Henderson. The discussion focuses on Henderson's early career trajectory, specifically how he transitioned from a background in mathematics to becoming a prominent economist who advocated for free-market principles, heavily influenced by the work of Nobel laureate Kenneth Arrow.

Detailed Analysis

David Henderson recounts that his path into economics began in Canada where he studied math, skipping a grade to graduate with a three-year degree at 19. He was deeply impressed by Kenneth Arrow's paper on property rights, which critiqued the 'Tragedy of the Commons' and suggested that well-defined property rights could solve environmental problems better than government intervention. Henderson wrote a critique of this paper, which garnered positive feedback from leading economists like Marty Feldstein and Larry Summers, encouraging him to pursue economics. He eventually accepted a position at the Cato Institute, focusing on writing for a general audience about free-market principles versus government intervention, particularly in areas like minimum wage and industrial policy. Henderson notes that his work was often in opposition to the prevailing consensus, particularly the idea that government intervention was inherently superior to free markets. He mentions that his early work was influenced by economists such as Arnold Harberger and Gary Becker at the University of Chicago, where he later pursued his Ph.D. Henderson credits his early experience, including an invitation from Marty Feldstein to work on a piece for the Journal of Law and Economics, as formative to his career direction, leading him to become a vocal proponent of market-based solutions.