SOME economists have found their free market principles put to the test. The Economist reported a few weeks ago that the one time Edinburgh home of Adam Smith is for sale. Some economists have rallied together to ensure it does not fall into the hands of developers, or just anyone who can pay the highest price.

It raises the question, when should historic preservation trump the market mechanism?

One of my favourite things about Edinburgh is its relative lack of nostalgia. Rather than turn all its ancient buildings into museums, most serve some modern function. One time, when I lived there, a friend came to visit. I took her on my daily walk down the Royal Mile. Upon our approach, we stopped and stared at one of Edinburgh’s first Starbucks. It had just opened on the ground floor of a medieval building. I could barely hear her tirade about globalization’s disregard for history and culture. I was too busy fantasizing about the American style muffins and lattes I could now have every morning.

Urban property is a scarce resource, Edinburgh has a disproportionately high number of influential people who have called it home. The entire Old Town could justifiably be made into a giant museum. But what better way to honour the people who lived there than to perpetuate Edinburgh as a functioning, modern, economically viable city?

Some restrictions may be appropriate. For example, demolishing Adam Smith’s old home and building a MacDonald’s drive-through might not be advisable. Though I imagine Adam Smith would want his former home going to no one, but the person who values it most.