New Palgrave Dictionary of Economics and the Law | The Economic Journal | Oxford AcademicEric A. Most users should sign in with their email address. If you originally registered with a username please use that to sign in. To purchase short term access, please sign in to your Oxford Academic account above. Don't already have an Oxford Academic account?
How to download any book on Amazon for free ?
Law and economics
First, the theoretical analysis focuses on efficiency. In simple terms, a legal situation is said to be efficient if a right is given to the party who would be willing to pay the most for it. There are two distinct theories of legal efficiency, and law and economics scholars support arguments based on both. The positive theory of legal efficiency states that the common law judge-made law, the main body of law in England and its former colonies, including the United States is efficient, while the normative theory is that the law should be efficient. It is important that the two theories remain separate. Most economists accept both.
Law and economics or economic analysis of law is the application of economic theory specifically microeconomic theory to the analysis of law that began mostly with scholars from the Chicago school of economics. Economic concepts are used to explain the effects of laws, to assess which legal rules are economically efficient , and to predict which legal rules will be promulgated. As early as in the 18th century, Adam Smith discussed the economic effects of mercantilist legislation. However, to apply economics to analyze the law regulating nonmarket activities is relatively new. Harold Luhnow , the head of the Volker Fund , not only financed F.
It seems that you're in Germany. We have a dedicated site for Germany. Law and Economics deals with the economic analysis of legal relations, legal provisions, laws and regulations and is a research field which has a long tradition in economics. It was lost after the expulsion of some of the leading economists from Germany during to , but then revived in Chicago. Both the subject of Law of Economics and the need for a concise Encyclopedia is particularly relevant in Europe today. Currently in the European Union there are several different legal cultures: the Anglo-Saxon legal framework, the German legal framework, which for example also includes Greece, and the Roman legal family—three jurisdictions which have to be covered with one and the same theory.
It asserts that the tools of economic reasoning offer the best possibility for justified and consistent legal practice. It is arguably one of the dominant theories of jurisprudence. The law and economics movement offers a general theory of law as well as conceptual tools for the clarification and improvement of its practices. Law and economics offers a framework with which to model legal outcomes, and common objectives with which to unify disparate areas of legal activity. The bringing together of legal theory and economic reasoning has also created new research agendas in the fields of behavioral economics: how rationality affects people's behavior within legal scenarios; public choice theory and how collective behavior should have an effect on legislation; and game theory: understanding strategic action in a legal context. Most traditional theories of jurisprudence look to uncover the essential or definitive aspects of the institution of law.