Law, economic approach to

2018 ◽  
Author(s):  
Jules L. Coleman
Keyword(s):  
Twentieth Century ◽  
Economic Analysis ◽  
Economic Efficiency ◽  
Welfare Economics ◽  
Private Law ◽  
Economic Approach ◽  
Economic Analysis Of Law ◽  
Legal Practice ◽  
Positive Economic ◽  
Trust Law

The development of an economic approach to legal practice has been the most important jurisprudential development in the last third of the twentieth century. Economic analysis has been offered as both a positive and a normative jurisprudence: as an analysis of important features of existing legal practices and as an ideal against which these practices ought to be evaluated. For some, economic analysis has a narrow explanatory range (in various fields of private law, corporations and taxation, and anti-trust law, for example), while others make broader claims for its ability to illuminate any area of law. Finally, there is a difference between those who focus on one explanation and those who focus on prediction, but all offer positive economic analysis of law based on the concept of economic efficiency as defined in welfare economics and applied to law by Coase, Posner, Calabresi and others.

Epstein's Theory of Strict Tort Liability

1992 ◽  
Vol 51 (1) ◽  
pp. 113-137
Author(s):  
N. E. Simmonds
Keyword(s):  
Economic Analysis ◽  
Private Law ◽  
Tort Liability ◽  
Economic Analysis Of Law ◽  
Legal Scholarship ◽  
Significant Tendency ◽  
The Law ◽  
Instrumental Role

Alan Brudner recently observed that a significant tendency within contemporary legal scholarship has been “the movement toward comprehending private law in terms of non-legal ‘perspectives’ that reduce to surface rhetoric the discourse by which private law articulates and understands itself”. This is most obviously true of the economic analysis of law, and not simply in so far as it introduces a vocabulary that is unfamiliar to the lawyer. For the perspective which has informed the most influential currents within that movement is fundamentally aggregative in orientation, so that legal doctrines developed within a bilateral adjudicative framework, focusing on justice between two parties, are inevitably cast in a subordinate and instrumental role. Economic approaches seek to explain the law from a standpoint outside of the law's own framework, and to reveal a deep rationale for particular legal doctrines which would not be transparent to the lawyers and judges who developed those doctrines.

Same-sex marriage: the irrelevance of the economic approach to law

2010 ◽  
Vol 6 (2) ◽  
pp. 139-149
Author(s):  
Mark D. White
Keyword(s):  
Economic Analysis ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Economic Approach ◽  
Economic Analysis Of Law ◽  
Benefit Analysis ◽  
Same Sex ◽  
Same Sex Marriage ◽  
The Core ◽  
Trade Offs

AbstractSeveral noted legal scholars, most prominently Richard Posner, have applied the economic analysis of law to the debate over same-sex marriage. In this note, I argue that the economic approach to law is ill-equipped to deal with the issues of principle, dignity and rights that are at the core of the debate, regardless of the position taken on the issue. Other scholars, such as Darren Bush, acknowledge the shortcomings of the economic approach, such as the importance of the assumptions on which cost-benefit analysis is made, but they do not appreciate that this is symptomatic of the economic approach as a whole, not merely the application of it by some scholars in some cases. My contention is that the economic approach to law is appropriate regarding issues of policy, where trade-offs are essential and necessary, but not regarding issues of principle, with which trade-offs are not so easily made.

scholarly journals Methods of Economic Analysis of Law in the Design of Normative Legal Acts

2014 ◽  
Vol 1 (4) ◽  
pp. 101-107
Author(s):  
V L Tambovtsev
Keyword(s):  
Economic Analysis ◽  
Institutional Design ◽  
Economic Approach ◽  
Economic Analysis Of Law ◽  
The Creation

The article gives a brief description of the economic approach to the analysis of law and institutional design, are determined by the relevant applications of the methods and results of economic analysis of law in the creation of normative-legal acts.

Deontological Morality and Economic Analysis of Law

2019 ◽  
pp. 520-543
Author(s):  
Eyal Zamir ◽  
Barak Medina
Keyword(s):  
Economic Analysis ◽  
Indirect Effects ◽  
Moral Theory ◽  
Intrinsic Value ◽  
Welfare Economics ◽  
Moral Judgments ◽  
Economic Analysis Of Law ◽  
Basic Form ◽  
Definition Of

Welfare economics—the normative branch of economics—is a consequentialist moral theory. Unlike deontological morality, at least in its basic form it attributes no intrinsic value to prohibitions on active or intentional harming of other people, lying, or promise-breaking, and does not allow people to prioritize their own interests over the overall good. The chapter critically examines several methods of incorporating deontological constraints and options into economic analysis of law and into welfare economics more generally. These methods include an analysis of the long-term and indirect effects of apparently efficient infringements of deontological constraints; a move from act- to rule-consequentialism; incorporating deontological concerns into the definition of good outcomes that should be maximized; and the treatment of moral judgments as preferences whose fulfillment should be maximized along with any other. In addition to these indirect ways, the chapter also examines the integration of thresholds constraints and options into economic analysis of law.

scholarly journals Application of V. Pareto’s economic efficiency criterion in Russian judicial practice

2021 ◽  
Vol 118 ◽  
pp. 01013
Author(s):  
Alina Dmitrievna Khokhlova
Keyword(s):  
Economic Analysis ◽  
Economic Efficiency ◽  
Comparative Method ◽  
Well Being ◽  
The United States ◽  
Economic Analysis Of Law ◽  
Judicial Practice ◽  
Legal Method ◽  
Normative Economic ◽  
Pareto Criterion

The purpose of the research is to justify the productivity of the application of one of the two most common criteria of economic efficiency (V. Pareto principle) in Russian judicial practice. Justification is carried out by identifying the content of the Pareto criterion, assessing examples of its application by Russian courts and determining the conditions and limitations of such application. The methodological basis of work was the formal-legal method, which allowed to analyze the texts of judicial decisions on the use by the court of normative economic analysis of law; the comparative method, which was used to compare the theoretical foundations and practical features of the criterion of economic efficiency by the Russian judiciary. The results of the research were the author’s conclusions about the applicability of the Pareto criterion in the Russian reality and the formulation of the most likely areas of its use by the courts. Law as an object of scientific knowledge cannot be studied in isolation from its social, cultural, political and economic assumptions, as it is a central tool by which the state affects the economic well-being of society. To improve the practice of using this tool, it seems necessary to evaluate it from the standpoint of economic efficiency. In this regard, the further vector of evolution of Russian law will be more and more active use of methodological developments of economic theory, the application of the economic analysis of law developed in the United States in law enforcement practice. This leads to the need for interdisciplinary research on the conceptual and practical problems of using this direction in Russia. The novelty of the research lies in a comprehensive approach, to the problem of applicability of normative economic analysis of law in the judicial practice of the Russian Federation.

scholarly journals Ekonominė teisės analizė (susiformavimas)

Teisė ◽  
2012 ◽  
Vol 83 ◽  
pp. 220-233
Author(s):  
Donatas Murauskas
Keyword(s):  
Nineteenth Century ◽  
Twentieth Century ◽  
Economic Analysis ◽  
Crucial Role ◽  
Law And Economics ◽  
Law School ◽  
Economic Analysis Of Law ◽  
Legal Doctrine ◽  
Second Wave

Straipsnyje yra pateikiamos Lietuvoje plačiai neanalizuotos ekonominės teisės analizės paradigmos ištakos ir pirmieji žingsniai. Konstatuojamas lemiamas utilitarizmo vaidmuo besiformuojančiai paradigmai. Pateikiamos ekonominei teisės analizei susiformuoti aktualios teisės mąstytojų įžvalgos. Taip pat analizuojami svarbesni paradigmos susikūrimo žingsniai nuo nesėkmingo pirmojo etapo XIX a. – XX a. pr. iki revoliucinių darbų XX a. vid., kai Čikagos teisės mokykloje aktyvūs ginčai dėl konkurencijos teisės turinio tapo atskaitos tašku ekonominiu mąstymu pagrįstoms idėjoms iš konkurencijos teisės plisti ir į kitas teisės sritis. The article provides insights on origins and first steps of the foundation of Economic Analysis of Law – paradigm which has not been observed sufficiently in Lithuanian legal doctrine. Crucial role of utiliarianism in the emerging paradigm is stated. Other fundamental ideas towards relation between law and economics of classic scholars are provided. More important steps of the foundation of the paradigm are discussed: from the failure of institutionalism movement (first period from nineteenth century to the twentieth century) to the revolutionary works of Chicago Law School and other scholars of a second wave (twentieth century).

Economic Analysis of Law: An Overview

2018 ◽  
Author(s):  
Eyal Zamir ◽  
Doron Teichman
Keyword(s):  
Economic Analysis ◽  
Welfare Economics ◽  
Normative Theory ◽  
Social Utility ◽  
Economic Analysis Of Law ◽  
Human Welfare ◽  
Positive Economics ◽  
Theory Of Law

While behavioral insights are vital to any theory of law, they are particularly important as qualifiers of standard economic analysis of law. Standard economic analysis assumes that people are rational maximizers of their own utility. As a normative theory, it ultimately takes into account only human welfare and focuses on maximization of aggregate social utility. This chapter offers a bird’s-eye view of economic analysis of law. It describes the main features of economic analysis in general, with a focus on positive economics, followed by a description of the tenets of the normative branch of economic analysis known as welfare economics.

scholarly journals Debating Law’s Irrelevance

2014 ◽  
Vol 2 (2) ◽  
pp. 159-213 ◽  
Author(s):  
Steven G. Medema
Keyword(s):  
Twentieth Century ◽  
Economic Analysis ◽  
Social Cost ◽  
Common Law ◽  
Legal Issues ◽  
Coase Theorem ◽  
Economic Analysis Of Law ◽  
Legal Scholarship ◽  
Classic Article ◽  
The 1960S

Ronald Coase’s classic article, The Problem of Social Cost, is widely credited with playing a significant role in the development of the economic analysis of law—one of the most influential new movements in legal scholarship in the last third of the twentieth century. The traditional history here is that this impact came via two routes: one, through the effect of Coase’s article in stimulating economists to analyze issues that had traditionally been the province of legal scholars (that is, Coase as a stimulus for “economics imperialism”); and two, through Coase’s impact on the thinking of Richard Posner, who was moved to examine the efficiency of common law rules in part by his encounter with Coase’s remarks regarding the propensity of judges to make decisions that accorded with economists’ sensibilities. While each of these historical claims is true enough, the lines of scholarship that they reference commenced only in the 1970s. The genesis of the application of Coase’s insights—and, in particular, the negotiation result that came to be known as the “Coase theorem”—to legal issues came in the first half of the 1960s, and significantly, the roots of this work lie in the legal community, rather than the economics community.

scholarly journals Economic Analysis of Law Pada Perubahan Kebijakan Kontrak Karya Menjadi Ijin Usaha Pertambangan Khusus (IUPK): Studi Kasus Pt. Freeport Indonesia

2018 ◽  
Vol 17 (2) ◽  
Author(s):  
Isti Sulistyorini ◽  
Siti Zulaekhah
Keyword(s):  
Economic Analysis ◽  
Literature Search ◽  
Economic Sector ◽  
Economic Approach ◽  
Economic Analysis Of Law ◽  
The Public ◽  
Mineral Mining ◽  
The People ◽  
The Government ◽  
Political Turmoil

<p>Freeport Indonesia is the first Indonesian PMA company in the field of mineral mining which has been operating its business activities since 1968, at the time of enactment of Law no. 1 Year 1967 about PMA. Political turmoil and economic instability, low exchange rate and social conflicts are a burden to the government and demand a swift step to overcome them. As a potential economic sector deemed capable of sustaining state revenues to be distributed to the public and ultimately improving the welfare of the people, the mining sector receives serious attention. Based on author literature search, PT. Freeport Indonesia is the first Indonesian PMA company in the field of mineral mining which has been operating its business activities since 1968, at the time of enactment of Law no. 1 Year 1967 about PMA. Based on the economic analysis of law according to Richard A. Postner, the change of the mining concession policy from contract-based in the form of Contract of Work (KK) to license-based through a Special Mining Business License (IUPK) is in accordance with the economic approach to the law. Government of Indonesia gradually over its attitude that the renewal of mining concession mechanism that is more oriented to the greatest prosperity of the people.<br /><strong>Keywords:</strong> Economic Analysis Of Law, Contract of Work, Freeport</p>

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