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Introduction to Law & Economics

Friday, September 25, 2009
Related Tags: economics | field | strives | principles | posner
 

Instructions

Identification

  • Step 1:
    The field of law and economics---also known as the economic analysis of law---applies economic principles and methods to the study of law.

Features

  • Step 1:
    Because people respond to incentives, the field of law and economics recognizes that laws can discourage particular activities by setting a price for engaging in them. Punitive damages in civil cases are one example, as they are intended to discourage someone from negligent acts that injure another person.

Effects

  • Step 1:
    In contract law, applying economic principles strives to reduce the costs of making and enforcing contracts. In tort law, an economic perspective strives to reduce the costs of workplace injuries and other accidents.

Benefits

  • Step 1:
    Applying economics to the law helps assess the economic efficiency of proposed laws. It can also help governments determine better public policies based on economic consequences.

History

  • Step 1:
    Applying economics to the law has its roots in Classical economists such as Adam Smith, but it was the 1960s before law and economics became a recognized specialty field.

Famous Ties

  • Step 1:
    Nobel Prize-winning economist Gary Becker and federal appeals court Judge Richard Posner are leading thinkers in the field of law and economics.

Resources


Introduction to Law & Economics Provided by eHow.com
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