Law and the Economy: An Introduction to Coasian Law and Economics

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Ning Wang
Keyword(s):  
Institutional Change ◽  
Transaction Costs ◽  
Market Economy ◽  
Research Program ◽  
Law And Economics ◽  
Economic Analysis Of Law ◽  
Founding Father ◽  
Market Transaction ◽  
Alternative Research ◽  
The Law

Abstract Ronald Coase was a founding father of modern law and economics. Yet, Coase distanced himself from the economic analysis of law, which today dominates the law and economics scholarship, and proposed an alternative research program, which is referred to here as “law and the economy”. As market transaction presumes the delineation of rights, which are primarily defined and enforced by law, law obviously anchors the foundation of a market economy. Moreover, changes in the legal system are a main source of institutional change that reassigns rights and redraws constraints under which rights are exercised, thus fundamentally affecting transaction costs and how the economy works. “Law and the economy” recognizes the law as an integral part of the economy and calls for the study of the economic impact of law.

The Economics of Fiduciary Law

2019 ◽  
pp. 665-685
Author(s):  
Richard R.W. Brooks
Keyword(s):  
Economic Analysis ◽  
Law And Economics ◽  
Structural Approach ◽  
Economic Analysis Of Law ◽  
Economic Agents ◽  
Institutional Economic ◽  
The Third ◽  
Personal Character ◽  
Economics Literature ◽  
The Law

This chapter examines the treatment of fiduciary law in the field of law and economics. It begins with a typology of three theoretical tracts that accounts for loyalty in economics: the first tract takes a structural approach to questions of loyalty and disloyalty based on models occupied by strictly rational economic agents who are unable to choose or act in any manner than that dictated by narrow self-interests; the second explains loyalty in terms of personal character or preferences for particular actions and choices; and the third approaches loyalty in terms of allegiances to relationships or associations and, more specifically, to their associated rules of conduct. The chapter then discusses these three theoretical tracts of loyalty by reviewing the law and economics literature on beneficiaries and fiduciaries in general, and principals and agents in particular. The discussion is organized along lines of the two branches of scholarship that defines the field of law and economics: institutional economic analysis and economic analysis of law.

Coase, Ronald H. (1910–)

2018 ◽  
Author(s):  
Brian H. Bix
Keyword(s):  
Economic Theory ◽  
Industrial Organization ◽  
Economic Analysis ◽  
Transaction Costs ◽  
Government Policy ◽  
Real World ◽  
Government Regulation ◽  
Law And Economics ◽  
Economic Analysis Of Law ◽  
Economic Thinking

Coase’s work reshaped the economic analysis of law and government policy, and began the law-and-economics movement. His writings, over the course of decades, have consistently emphasized the importance to clear economic thinking of observing actual practice. While economic theory had often been grounded on abstract models that assumed the absence of any costs for commercial transactions, Coase has shown how recognizing the pervasive presence of frequently substantial transaction costs in the real world requires rethinking established economic ideas about industrial organization and government regulation.

scholarly journals The Economic Analysis of Law in Pakistan

2020 ◽  
Vol 59 (1) ◽  
pp. 121-127
Author(s):  
Omer Siddique
Keyword(s):  
Economic Analysis ◽  
Law And Economics ◽  
Invisible Hand ◽  
Economic Analysis Of Law ◽  
Fundamental Point ◽  
The Law ◽  
Market Capitalism ◽  
The Invisible

One of the most important functions of law is to assign rights and liabilities in such a way that disputes do not arise. The failure to prevent disputes in a society indicates that the structure of the law is inefficient. Since the focus of law and economics is on efficiency (see Box 1) and how people respond to incentives, one way to carry out the economic analysis of the law is to use the framework of market capitalism. Driven by the idea of the invisible hand, the fundamental point of capitalism is that individuals should be able to use their capital freely, without the state’s interference. It implies that individuals’ legal ability to move capital should be frictionless.

scholarly journals The Road Not Taken – Reading Calabresi’s “The Future of Law and Economics”

Global Jurist ◽  
2019 ◽  
Vol 19 (3) ◽  
Author(s):  
Aleksandar Stojanović ◽  
Paolo Silvestri
Keyword(s):  
Economic Analysis ◽  
Law And Economics ◽  
Legal Institutions ◽  
Economic Analysis Of Law ◽  
Special Issue ◽  
Human Race ◽  
The Road ◽  
Future Developments ◽  
The Future ◽  
The Law

Abstract The publication of Guido Calabresi’s book “The Future of Law and Economics” has drawn a substantial amount of attention among law and economics scholars. We thought that the best way to devote special attention to this book was to devote a Special issue to it. This article situates Calabresi’s book among other reflections on the future of the discipline, introduces and explains the reasons behind this Special issue and discuss the organization and content of it. We emphasize how Calabresi’s historical-conceptual standpoint allows him to isolate the stakes of different future developments around the question of how could further appreciation of legal institutions that defy the standard economic assumptions help the field develop theoretically. Overall, the contributors all shared Calabresi’s attempt to restore the balance between Law and Economics and the need to better account for the “whole unanalysed experience of human race”, often neglected by the Economic Analysis of Law approach. Most disagreements are about the ‘how’. In any case, the search for the Law and Economics ‘not (yet) taken’ or for other “Law and … ” approaches is always open to the Future.

scholarly journals MENGGUGAH FONDASI KEILMUAN ILMU HUKUM DALAM PENGAKUAN PERKAWINAN HOMOSEKSUAL DI MASSACHUSETTS MELALUI EFISIENSI EKONOMI

2018 ◽  
Author(s):  
Fajar Sugianto ◽  
Budiarsih Budiarsih
Keyword(s):  
Economic Analysis ◽  
Human Behavior ◽  
Scientific Method ◽  
Law And Economics ◽  
Legal Issues ◽  
Economic Analysis Of Law ◽  
Different Dimensions ◽  
The Law

Law and economics are two independent sciences that compliment each other in analyzing forms of legal issues. The limitations of each independent sciences in fact have brought these two came even closer in resolving the issue of the legalization of homosexual marriages in Massachusetts. As a scientific method, Law and Economics, also known as the economic analysis of law, explores the law and jurisprudence in new ways through different dimensions. The use of economics broaden the field of law especially as a tool to create incentives to change human behavior in achieving its objectives based on its idealism of efficiency. The use of Law and Economics in this writing provided economic rationales that the legalization of homosexual marriages in Massachusetts are efficient therefore the law shall produce rules that lead to the most efficient change that the society desire the most.

The Law and Economics of Integrity as Social Capital

2015 ◽  
pp. 19-49
Author(s):  
George Steven Swan
Keyword(s):  
Social Capital ◽  
Interest Rate ◽  
Market Economy ◽  
Law And Economics ◽  
Management Science ◽  
Feedback Mechanism ◽  
Individual Responsibility ◽  
Critical Feature ◽  
Managerial Authority ◽  
The Law

Individual responsibility is a critical feature of any successful market economy. Moreover, moral commitment is a crucial element of managerial authority in a capitalistic environment. For ethics, trust and integrity constitute social capital whereby an economy can thrive. For example, deserved earned trust lowers an interest rate. An atmosphere of integrity can minimize parties' confidence-malinvestment. In addition, integrity as social capital engenders a virtuous-circle feedback-mechanism respecting the character of a citizenry overall. This examination of the law and economics backdrop to these realities is informed by an array of insights from several Nobel laureates in economics and of a Father of Management Science, Peter F. Drucker.

The Law and Economics of Integrity as Social Capital

2018 ◽  
pp. 1324-1347
Author(s):  
George Steven Swan
Keyword(s):  
Social Capital ◽  
Interest Rate ◽  
Market Economy ◽  
Law And Economics ◽  
Management Science ◽  
Feedback Mechanism ◽  
Individual Responsibility ◽  
Critical Feature ◽  
Managerial Authority ◽  
The Law

Individual responsibility is a critical feature of any successful market economy. Moreover, moral commitment is a crucial element of managerial authority in a capitalistic environment. For ethics, trust and integrity constitute social capital whereby an economy can thrive. For example, deserved earned trust lowers an interest rate. An atmosphere of integrity can minimize parties' confidence-malinvestment. In addition, integrity as social capital engenders a virtuous-circle feedback-mechanism respecting the character of a citizenry overall. This examination of the law and economics backdrop to these realities is informed by an array of insights from several Nobel laureates in economics and of a Father of Management Science, Peter F. Drucker.

Preclusion of the Right to Submit New Facts and Evidence According to the Law on Contested Procedure in Kosovo

2017 ◽  
Vol 10 (1) ◽  
pp. 84
Author(s):  
ARTAN QERKINI
Keyword(s):  
Market Economy ◽  
Legal System ◽  
Practical Implementation ◽  
Relevant Evidence ◽  
Legal Provisions ◽  
The Law ◽  
Legislative Amendments ◽  
The Right

The market economy and changes within Republic of Kosovo’s legal system, which imposed the need of legal changes within the field of contested procedure also, have caused this procedure to become more efficient vis-à-vis legal provisions which were in force until October 6th 2008. Through the Law on Contested Procedure (hereinafter “LCP”), the legislator has aimed, inter alia, to make the contested procedure more concentrated, and thus, more efficient. In this regard, the Kosovar legislator has determined that it is mandatory for the parties to present any and all relevant evidence for resolving the dispute until the preparatory session, and in the event that one was not held, until the first main hearing session. As an exception, the parties may present relevant evidence even after this stage of proceedings, provided that their failure to present said evidence no later than at the preparatory session, respectively first main hearing session, was through no fault of their own. I consider that these legislative amendments are vital to ensuring practical implementation of the principle of efficience in the contested procedure.

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