Law, Economics, and Morality examines the possibility of combining economic methodology and deontological morality through explicit and direct incorporation of moral constraints into economic models. Economic analysis of law is a powerful analytical methodology. However, as a purely consequentialist approach, which determines the desirability of acts and rules solely by assessing the goodness of their outcomes, standard cost-benefit analysis is normatively objectionable. Moderate deontology prioritizes such values as autonomy, basic liberties, truth-telling, and promise-keeping over the promotion of good outcomes. (...) It holds that there are constraints on promoting the good. Such constraints may be overridden only if enough good is at stake. While moderate deontology conforms to prevailing moral intuitions and legal doctrines, it is arguably lacking in methodological rigor and precision. Eyal Zamir and Barak Medina argue that the normative flaws of economic analysis can be rectified without relinquishing its methodological advantages and that moral constraints can be formalized so as to make their analysis more rigorous. They discuss various substantive and methodological choices involved in modeling deontological constraints. Zamir and Medina propose to determine the permissibility of any act or rule infringing a deontological constraint by means of mathematical threshold functions. Law, Economics, and Morality presents the general structure of threshold functions, analyzes their elements and addresses possible objections to this proposal. It then illustrates the implementation of constrained CBA in several legal fields, including contract law, freedom of speech, antidiscrimination law, the fight against terrorism, and legal paternalism. (shrink)

John Law left a remarkable legacy of economic concepts from a time when economic conceptualization was very much at an embryonic stage. Yet he is best known--and generally dismissed--today as a rake, duellist, and gambler. This intellectual biography offers a new approach to Law, one that shows him to have been a significant economic theorist with a vision that he attempted to implement as policy in early-eighteenth-century Europe. Law's style, marked by a clarity and use of modern terminology, stands out (...) starkly against the turgid prose of many of his contemporaries. His vision of a monetary and financial system was certainly one of a later age, for Law believed in an economy of banknotes and credit where specie had no role to play. Ultimately Law failed as a policy-maker, in part because of the entrenchment of the financiers and their aristocratic backers and in part because of theoretical flaws in his vision. His struggle for power took place against the background of Europe's first major stock boom and collapse. The collapse of the Mississippi System, which he had conceived, and the South Sea Bubble led to a lasting impression of Law as a failure. It is this impression that Antoin Murphy seeks to dispel. (shrink)

In the wake of the financial crisis of 2008 and ongoing debt-related troubles there have been widespread calls to put banking and economic activity on a secure ethical foundation, either by regulation or through voluntary reform. In this volume a distinguished set of authors explore various economic, philosophical, and ethical ideas from historical, contemporary, and future-looking perspectives. At the core are two related ideas much mentioned but far more rarely examined: the idea of natural law and that of the common (...) good.In these essays the foundations and meaning of these notions are carefully studied and put to work in examining the nature and scope of ethics in relation to global economics. (shrink)

From the early days of philosophy, ethics and justice, there is wide consensus that the constancy of the laws establishes the legal system. On the other hand, the rate at which we accumulate knowledge is gaining speed like never before. Due to the recently increased attention of academics to climate change and other environmental issues, a lot of new knowledge has been obtained about carbon management, its role in nature and mechanisms regarding the formation and degradation of organic matter. A (...) multidisciplinary techno-economic assessment of current composting standards and laws that took into account the current state of knowledge about carbon management was carried out as a case study. Economic and environmental damage caused by outdated laws was revealed. In addition, it was found that the introduction of the best composts into the market is permitted, causing additional negative environmental as well as economic impacts. (shrink)

Since its publication in early 2008, the DCFR has triggered an intensive discussion throughout Europe. The contributions combined in the present volume stand out as they add a Law & Economics perspective to the ongoing debate. A workshop held at the Law and Economics Faculty of the University of Bonn in November 2008 aimed at stimulating the debate on the economic implications of the principles and rules enshrined in the DCFR. An essential part of the papers presented at (...) the Bonn workshop are now being published. The topics addressed range from general issues such as the policies of anti-discrimination and consumer protection to analyses of specific legal areas, like the law of remedies, the law of service contracts and the law of torts or delict. (shrink)

The aim of The Legal Foundations of Micro-Institutional Performance is to introduce the reader to a different way of thinking about economics that will allow them to both understand and apply legal concepts to economic analysis. To this end, it adopts and further develops Wesley Hohfeld's legal framework of jural (legal) relations as a tool of analysis. This analytical tool, as built into the Legal-Economic Performance framework, provides specific direction in identifying and describing interdependence among economic agents (including rights, (...) duties, liberties and exposure to various acts). The framework adopted and developed in this book relies on the concept of interdependence--that all economic agents are tied together in a legal system given the inherent interdependent nature of transactions in a complex modern global economy. The authors start by developing this framework and then apply it to a variety of settings and empirical examples. Using this new method, economists will be able to reshape their analysis to account for how legal systems and specific legal rules impact economic performance and outcomes. This approach will be of great interest to graduate and advanced undergraduate social science scholars, faculty interested in the intersections of law and economics and the application of legal concepts to impact analysis, and practitioners in the fields of policy, law and economics. (shrink)

In France, John Baptist Say has the merit of producing a very superior work on the subject of Political Economy. His arrangement is luminous, ideas clear, style perspicuous, and the whole subject brought within half the volume of [Adam] Smith's work. Add to this considerable advances in correctness and extension of principles.

This paper provides an empirical study of Italian ‘boutique law firms’. By building on seventeen semi-structured interviews with lawyers, the paper explores institutional, professional, and societal features of such firms and their lawyers. The article shows that, while the rise of large law firms triggered a partitioning of the Italian legal field in the past decades, more recently this small, but economically important, sector of the profession revived the classic model of delivering legal services characterised by a strong sense of (...) autonomy and independence, a client-centered but ethically robust approach to legal practice, a close relationship with academic and political environments, and a focus on projecting a professional image of themselves and their firms in society. These are, in other words, the last bastion of professionalism and are increasingly gaining an important role in the Italian field. (shrink)

Human rights discourse has been likened to a global lingua franca, and in more ways than one, the analogy seems apt. Human rights discourse is a language that is used by all yet belongs uniquely to no particular place. It crosses not only the borders between nation-states, but also the divide between national law and international law: it appears in national constitutions and international treaties alike. But is it possible to conceive of human rights as a global language or lingua (...) franca not just in a figurative or metaphorical sense, but in a literal or linguistic sense as a legal dialect defined by distinctive patterns of word choice and usage? Does there exist a global language of human rights that transcends not only national borders, but also the divide between domestic and international law? Empirical analysis suggests that the answer is yes, but this global language comes in at least two variants or dialects. New techniques for performing automated content analysis enable us to analyze the bulk of all national constitutions over the last two centuries, together with the world’s leading regional and international human rights instruments, for patterns of linguistic similarity and to evaluate how much language, if any, they share in common. Specifically, we employ a technique known as topic modeling that disassembles texts into recurring verbal patterns. The results highlight the existence of two species or dialects of rights talk—the universalist dialect and the positive-rights dialect—both of which are global in reach and rising in popularity. The universalist dialect is generic in content and draws heavily on the type of language found in international and regional human rights instruments. It appears in particularly large doses in the constitutions of transitional states, developing states, and states that have been heavily exposed to the influence of the international community. The positive-rights dialect, by contrast, is characterized by its substantive emphasis on positive rights of a social or economic variety, and by its prevalence in lengthier constitutions and constitutions from outside the common law world, especially those of the Spanish-speaking world. Both dialects of rights talk are truly transnational, in the sense that they appear simultaneously in national, regional, and international legal instruments and transcend the distinction between domestic and international law. Their existence attests to the blurring of the boundary between constitutional law and international law. (shrink)

This anthology illustrates how law and economics is developing in Europe and what opportunities and problems - both in general and specific legal fields - are associated with this approach within the legal traditions of European countries. The first part illuminates the differences in the development and reception of the economic analysis of law in the American Common Law system and in the continental European Civil Law system. The second part focuses on the different ways of thinking of lawyers (...) and economists, which clash in economic analysis of law. The third part is devoted to legal transplants, which often accompany the reception of law and economics from the United States. Finally, the fourth part focuses on the role economic analysis plays in the law of the European Union. This anthology with its 14 essays from young European legal scholars is an important milestone in establishing a European law and economics culture and tradition. (shrink)

The Law and Economics approach to law dominates the intellectual discussion of nearly every doctrinal area of law in the US and its influence is growing steadily outside America as well. 2013 marked the fortieth anniversary of the publication of Richard Posner's Economic Analysis of Law, the book that launched the Law and Economics movement. The eighth edition of the book was published in 2011, this time competing against over twenty textbooks, collections and casebooks on law and (...) class='Hi'>economics. Although there has been phenomenal growth in this area questions remain. Why has Law and Economics movement become so successful? What is the current status of the Chicago School? What are the alternative theories and how much influence do they exert? What can be considered mainstream today? What are the norms and values underlying this impressive body of research? These issues, amongst others, are thoroughly explored by the contributors. (shrink)

"Law and Economics has become an established field worldwide and it may be argued that it is one of the few examples of a successful interdisciplinary project. This book explores whether, or to what extent, that interdisciplinarity has indeed been a success. It provides insights on the foundations and methods, achievements and challenges of Law and Economics, at a time when both the continuing challenges to academic economics and the growth of empirical legal studies raise questions about (...) the identity and possible further developments of the project. Through a combination of reflections on long-term trends and detailed case studies on current developments, contributors to this volume analyse whether and in which sense Law and Economics is a successful interdisciplinary endeavour. Inspired by insights from the philosophy of social sciences, the book shows how concepts travel between legal scholarship and economics, how they change meanings when applied elsewhere, how economic theories and models inform, and transform, judicial practice, and addresses whether the transfers of knowledge between economics and law are symmetrical exchanges between the two disciplines"--. (shrink)

Despite the idiosyncratic behavior of individuals, empirical regularities exist in social and economic systems. These regularities often arise from simple underlying mechanisms which, analogous to the natural sciences, can be expressed as universal principles or laws. In this essay, I discuss the similarities between economic and natural phenomena and argue that it is advantageous for economists to adopt methods from the natural sciences to discover “universal laws” in economic systems.

In this unprecedented study, Arild Sæther sheds new light both on Pufendorf's own life and work, as well as his influence on his contemporaries and on later scholars. This book explores Pufendorf's doctrines of political economy and his work on natural law, which was translated into several major European languages. Natural Law and the Origins of Political Economy considers the influence he had on the writings on political economy of John Locke, Charles Montesquieu, Jean-Jacques Rousseau, Francis Hutcheson and Adam Smith, (...) amongst others. If Smith can be called the father of modern economics, this book claims that Pufendorf can be called the grandfather. (shrink)

In tort law, including Lithuanian tort law, damage usually is divided into two types: pecuniary and non-pecuniary damage. The concept of non-pecuniary damage has recently become a focus of attention of Lithuanian legal researchers. However, it has to be noted that the issues related to the concept of pecuniary damage remain scarcely analysed. As a result, the unique type of pecuniary damage, i.e. the damage of purely economic character, has received no attention whatsoever in Lithuanian tort law. It is usually (...) believed that the defence of the values of purely material character fall into the sphere of contractual law, while tort law is not concerned with the protection of these values. However, in the course of the development of social relations it has become apparent that in the present-day society personal financial losses have become equally important to the cases of actual damage to a person or a property. On the other hand, the fear to overextend the limits of tort law and, thus, limit the persons’ freedom to act, coupled with the different nature of the values protected by tort law provide grounds for the position that relatively abstract financial interests and absolute values or relative personal values should be protected in different ways. Referring to the doctrine and practice of foreign countries as well as the results of the analysis of Lithuanian positive law and court practices, in this article we aim at giving an answer to the question of where and how the ambit of protection under the tort law in the cases of damage of purely economic character should be defined. (shrink)

This anthology discusses important issues surrounding environmental law and economics and provides an in-depth analysis of its use in legislation, regulation and legal adjudication from a neoclassical and behavioural law and economics perspective. Environmental issues raise a vast range of legal questions: to what extent is it justifiable to rely on markets and continued technological innovation, especially as it relates to present exploitation of scarce resources? Or is it necessary for the state to intervene? Regulatory instruments are available (...) to create and maintain a more sustainable society: command and control regulations, restraints, Pigovian taxes, emission certificates, nudging policies, et cetera If regulation in a certain legal field is necessary, which policies and methods will most effectively spur sustainable consumption and production in order to protect the environment while mitigating any potential negative impact on economic development? Since the related problems are often caused by scarcity of resources, economic analysis of law can offer remarkable insights for their resolution. Part I underlines the foundations of environmental law and economics. Part II analyses the effectiveness of economic instruments and regulations in environmental law. Part III is dedicated to the problems of climate change. Finally, Part IV focuses on tort and criminal law. The twenty-one chapters in this volume deliver insights into the multifaceted debate surrounding the use of economic instruments in environmental regulation in Europe. (shrink)

. History of the concept of economic efficiency . INTRODUCTION James Buchanan won the Nobel Prize by proving that the process by which elected officials ...

This collection uses economic analysis to study some of the most pressing issues in corporate law. The last decade has brought certain corporate transactions and arrangements to the forefront of public attention and public debate. At the same time, a new mode of corporate law analysis has been developed - one that uses the tools of economics to identify the consequences and desirable features of corporate law rules. By bringing together work at the frontier of this method of analysis, (...) the volume provides a good picture of the power, current state, and future direction of the economic analysis of corporate law. Written by some of the most prominent contributors to the field, many of the chapters focus directly on the corporate control transactions that have recently attracted the most interest and controversy - corporate takeovers, buy-outs, recapitalizations, and reorganizations. (shrink)

Global justice is one of the most important subjects in law and political theory today. What principles of justice might tell us about the actual practices of the WTO and other international economic institutions is of vital importance to states and their citizens. This volume reflects the results of a symposium held at Tillar House, the ASIL headquarters in Washington, DC, in November 2008 which brought together philosophers, legal scholars, and economists to discuss the problems of understanding international economic law (...) from the standpoint of rights, justice, and economic efficiency. The book makes advances in developing the normative criterion for ecaluation and justifying the international economic legal order. (shrink)

Governments, or at least the clever ones among them, are aware of the factors guiding business activities. In the course of adopting and enforcing economic legislation, they seek to attract business activities in order to increase national income, generate employment opportunities, and, very generally, please voters. Hence economic law may be considered an economic good, as suggested by the title of this book. That function, which most rules of economic law have in the competition of systems, was strengthened by the (...) worldwide liberalization of trade. Today, it is of greater significance than ever before. Lawyers, economists, academics, and practitioners, from inside and outside Germany, have taken a look at the facts and have discussed approaches to conceptualizing them. The resulting 30 essays, collected in this volume, contribute to the interpretation of existing, and the making of new, economic law. (shrink)

The law and economics movement is the principal interdisciplinary field of legal studies. This paper traces the history of the movement and explains its basic principles, contrasts the version of the movement that predominates in the United States with the version that prevails in Europe, noting the greater emphasis of the former on substantive doctrine and of the latter on rule of law considerations, and emphasizes the importance of the movement for legal and economic reform in developing nations.

In this volume, Charles Kindleberger makes a powerful case against the idea that any one model could be used to unlock the basic secret of economic history. It is essentially an exercise in methodology, addressed to economists and economic historians alike. He argues that too many economists discover a relationship or a uniformity in economic behaviour, develop a model, and use it to explain more than it is capable of, including, on occasion, all economic behaviour. These lectures discuss four 'laws' (...) in economics to show how uniformities can illuminate economic history in particular aspects. They illustrate the view that the economist or economic historian seeking to test analysis against historical data should have a variety of different models, and not just one. The implication is that however scientific and technical the tools, choosing them carefully to fit particular circumstances is itself an art. (shrink)

There is an ever-increasing interest in the question of how and why legal norms can effectively guide human action. This compact volume demonstrates how economic tools can be used to examine this question and scrutinize these legal norms. Indeed, this is one of the first text to be based on civil law instead of the more usual common law, situating the study of both private and public law within the framework of institutional economics, with recommendations for further reading and (...) a list of key terms in each chapter. Besides the standard economic problems in property, tort, contract, crime and litigation, areas covered include: new institutional economics public choice constitutional law public administrations regulatory impact analysis. This book is essential reading for students in law schools and economics departments alike, particularly those engaged with the methodology of law and economics, applied economics and economic methods of legal policy. (shrink)

In the Winter 2017 edition of JLME, Dr. Carson outlined an economic approach to the epidemiology of HIV transmission within the gay community, with a special emphasis on mobile apps. His conclusion is that HIV transmission amongst the gay community constitutes a collective action problem, which is resolved by the social norm of using a condom. This article critiques Dr. Carson's approach from an economic perspective. By utilizing classic law and economic theory, this article will argue that HIV transmission may (...) not, in fact, constitute a collective action problem in economic terms, and that instead condom use as a method of disease protection in theory can arise from purely rational, market driven actions. To do so, it borrows from transactional theory of information asymmetry to show the potential to alert counterparts as to serostatus. This conclusion provides an important supplement to Carson: rather than social norms being the core driver in condom usage to prevent HIV, instead condom use may arise solely as a result of rational, private decision making arising from market signaling. The article then critiques its own findings to demonstrate that it is unclear whether Carson's argument or the argument in this paper is, indeed, correct — which may represent a limitation in the analytical techniques advanced. (shrink)

This paper suggests the adoption of a ‘capability approach’ to key concepts in healthcare. Recent developments in theoretical approaches to concepts such as ‘health’ and ‘disease’ are discussed, and a trend identified of thinking of health as a matter of having the capability to cope with life’s demands. This approach is contrasted with the WHO definition of health and Boorse’s biostatistical account. We outline the ‘capability approach’, which has become standard in development ethics and economics, and show how existing (...) work in those areas can profitably be adapted to healthcare. Cases are used to illustrate the value of adopting a capability approach. (shrink)

This is an expanded second edition of Nicholas Mercuro and Steven Medema's influential book Economics and the Law, whose publication in 1998 marked the most comprehensive overview of the various schools of thought in the burgeoning field of Law and Economics. Each of these competing yet complementary traditions has both redefined the study of law and exposed the key economic implications of the legal environment. The book remains true to the scope and aims of the first edition, but (...) also takes account of the field's evolution. At the book's core is an expanded discussion of the Chicago school, Public Choice Theory, Institutional Law and Economics, and New Institutional Economics. A new chapter explores the Law and Economics literature on social norms, today an integral part of each of the schools of thought. The chapter on the New Haven and Modern Civic Republican approaches has likewise been expanded. These chapters are complemented by a discussion of the Austrian school of Law and Economics. Each chapter now includes an "At Work" section presenting applications of that particular school of thought. By providing readers with a concise, noncritical description of the broad contours of each school, this book illuminates the fundamental insights of a field with important implications not only for economics and the law, but also for political science, philosophy, public administration, and sociology. (shrink)

This paper provides an economic justification for the exemption from liability for omissions in torts and for the exceptions to this exemption. It interprets the differential treatment of acts and omissions under tort law as a proxy for a more fundamental distinction between harms caused by multiple injurers, where each one can single-handedly prevent the harm, and harms caused by a single injurer. Since the overall cost to which a group of injurers is exposed is constant, attributing liability to many (...) injurers reduces the part each has to pay and, consequently, reduces each one’s incentives to take precautions. Broad exemption from liability for omissions is a way of carving a simple, practical rule to distinguish between the typical cases in which an agent can be easily selected and provided with sufficient incentives and cases in which there is a serious problem of dilution of liability. The exceptions to the rule exempting from liability for omissions are explained in terms of efficiency. The imposition of liability for omissions depends on the ability to identify a salient agent, i.e., to single out one or few liable agents and differentiate their role from that of others. Tort law designs three types of "salience rules." It either creates salience directly, or it can exploit salience created "naturally," or it can induce injurers to create salience voluntarily. (shrink)

This book brings together the most authoritative articles on Law and Economics and the interaction between the two disciplines as well as the use of economic tools to analyse legal problems. Aimed at students experiencing the subject for the first time, the selections are interlaced with a wealth of features including explanatory introductions and exercises. Key features of the reader include: - The accessibility of the material: the articles should be understandable to those with only a limited background in (...) economics and law. - The book’s focus on the most important and basic – foundational – issues in law and economics. - An exposition of the opposition between the different legal systems that exist in the world including common law, civil law and public law. - Debates viewed from the perspective of the scholars from a range of backgrounds are presented as well as all the key figures in economics and in law. The book should prove to be an essential resource to all students studying this burgeoning field and represents an exciting introduction to one of the key disciplines which has grown up in the social sciences in recent times. (shrink)

This book serves as a compact introduction to the economic analysis of law and organization. At the same time it covers a broad spectrum of issues. It is aimed at undergraduate economics students who are interested in law and organization, law students who want to know the economic basis for the law, and students in business and public policy schools who want to understand the economic approach to law and organization. The book covers such diverse topics as bankruptcy rules, (...) corporate law, sports rules, the organization of Congress, federalism, intellectual property, crime, accident law, and insurance. Unlike other texts on the economic analysis of law, this text is not organized by legal categories but by economic theory. The purpose of the book is to develop economic intuition and theory to a sufficient degree so that one can apply the ideas to a variety of areas in law and organization. (shrink)

Herman Dooyeweerd’s classical characterization of the meaning-kernel of the economic modality runs as follows: the sparing or frugal mode of administering scarce goods, implying an alternative choice of their destination with regard to the satisfaction of different human needs. My first aim in this paper is to show that Dooyeweerd’s characterization of the meaning-kernel of the economic modality naturally leads to neoclassical economic theory. In order to do this, I will provide an argument that, departing from Dooyeweerd’s definition of the (...) meaning-kernel of the economic modality, concludes in a logical reconstruction of (the static case of) neoclassical economic theory (from now on denoted as NET). The fundamental law of this theory will turn out to be thus, naturally, a formulation of the fundamental modal law of economics. The second aim of the paper is epistemological since it discusses the methodological problem of the empirical claim of the theory. It is my hope that this discussion will clarify the limits of NET and provide a reply to the objections raised against it by Reformed scholars like Goudzwaard (1980). (shrink)

We explore how adding prosocial preferences to the canonical precaution model of accidents changes either the efficient damages rule or the harm from accidents. For a utilitarian lawmaker, making the potential injurer sympathetic to the victim of harm has no effect on either outcome. On the other hand, making injurers averse to harming others reduces the harm from accidents but has no effect on efficient damages. For an atomistic lawmaker — one who excludes prosocial preferences from social welfare — cultivating (...) a taste for either harm aversion or perfect sympathy can reduce efficient damages, though neither has any effect on the amount of harm from accidents. On the other hand, causing people to act as if they are averse to harm creation, such as out of habit or moral obligation, reduces both the efficient amount of damages and total harm. In general, encouraging either a distaste for, or moral commitment against, harm creation is useful while inculcating sympathy for victims of harm is not. (shrink)

As part of the roundtable “Economic Sanctions and Their Consequences,” this essay examines unilateral coercive measures. These types of sanctions are applied outside the scope of Chapter VII of the United Nations Charter, and were developed and refined in the West in the context of the Cold War. Yet the eventual collapse of the Berlin Wall did not herald the demise of unilateral sanctions; much to the contrary. While there are no incontrovertible data on the extent of these measures, one (...) can safely say that they target in some way a full quarter of humanity. In addition to being a major attack on the principle of self-determination, unilateral measures not only adversely affect the rights to international trade and to navigation but also the basic human rights of innocent civilians. The current deterioration of the situation, with the mutation of embargoes into blockades and impositions on third parties, is a threat to peace that needs to be upgraded in strategic concern. (shrink)

This is the first book to comprehensively analyze the work of Hans Micklitz, one of the leading scholars in the field of EU economic law. It brings together analysts, academic friends and critics of Hans Micklitz and results in a unique collection of essays that evaluate his work on European Economic Law and Regulation. The contributions discuss a wide range of Micklitz' work: from his theoretical work on private law beyond party autonomy, with a special focus on its regulatory function, (...) to the illustration of how his work has built the basis for current solutions such as used in solving the financial crisis. The book is divided into sections covering foundations of private law, regulatory law, competition and intellectual property law, product safety law, consumer contract law and the enforcement of law. This book clearly shows the enormous impact of Hans Micklitz' work on the EU legal system in both scholarship and practice. (shrink)

This introduction explains the reasons behind this Special issue and discuss the organization and content of it. The difficulty of a genuine dialogue and understanding between economics, law and humanities, seems to be due not only to the fragmentation of reflections on man, but to a real ‘conflict of anthropologies’. What kind of conceptions of man and human values are presupposed by and / or privileged by economics, law, economic approaches to law and social sciences? How and when (...) do these conceptions come into conflict within and between disciplines? How do these conceptions of man and his values influence the conceptions of economics, law and institutions, and vice versa, how do these last conceptions influence the former? What are the normative, regulatory and practical implications of assuming an anthropological and / or axiological perspective instead of another? This Special issue aims at exploring the possibility of finding a common ground for discussion between economics, law and humanities, through the analysis and comparison of both the conceptions of man, human action and values assumed by economics, law and humanities, and their normative implications. The contributions to this Special issue and its organization are outlined at the end of this introduction. (shrink)

This chapter contains sections titled: An Economic Model of Carroll Towing Relaxing the Model's Initial Assumptions Efficiency as a Norm Some Limitations of Law and Economics Conclusion References.

ECONOMICS AND LAW HAVE HISTORICALLY ATTENUATED THE CONTRIBUtion of ethics in their putative separation of fact and value. In this essay I argue that reconceptualizing the relationships between law, economics, and ethics reveals the shortcomings of positions that disavow ethics. In the first section I contend that thinkers must reread Adam Smith as an economist and a moral philosopher to appreciate his extended treatment of sympathy, conscience, and social justice. In the second section I appropriate the work of (...) Amartya Sen to examine the entanglement of fact and value in deliberating economic choices, including moral motivations and social evaluations that problematize reductive images of economic actors. Finally, I interrogate legal regulation of corporate governance with respect to the Enron scandal and the 2002 Sarbanes-Oxley Act. I argue that legal regulation is a necessary but not sufficient resolution to corporate misconduct because it too enervates ethics and bifurcates fact and value. (shrink)

The Oxford Handbook of Law and Economics provides a broad overview of numerous current and developing topics in the field of law and economics. With contributions by over one-hundred experts in the field within one work, the volume covers issues ranging from as far as Law and Neuroeconomics to European Union Law and Economics to Feminist Theory and Law and Economics. Its detail and breadth make it an invaluable reference book and contribution to the field.

This is the first book to examine individual rights from an economic perspective, collecting together leading articles in this emerging area of interest and showing the vibrant and expanding scholarship that relates them. Areas covered include The implications of constitutional protections of individual rights and freedoms, including freedom of speech and of the press, The right to bear arms, The right against unreasonable searches, The right against self-incrimination, The right to trial by jury, The right against cruel and unusual punishment, (...) including capital punishment. The focus of these papers is both theoretical and empirical, examining how economics can illuminate the entire sequence of crime and punishment, from the decision to commit a crime, to police methods for apprehending and arresting criminals, to the rules used in trials to the scope of punishment for the convicted. (shrink)

This anthology highlights the theoretical foundations as well as the various applications of Behavioural Law and Economics in European legal culture. By the same token, it fosters the dialogue between European and American Law and Economics scholars. The traditional neo-classical microeconomic theory explains human behaviour by using Rational Choice. According to this model, people tend to maximize the difference between expected utility and cost ("expected utility theory"). This theory includes three assumptions: (1) unbounded rationality, (2) unbounded self-interest, and (...) (3) unbounded willpower. Behavioural Economics questions these assumptions and endeavours to render economic analysis more realistic by underpinning it with psychological insights. In recent years, the influence of Behavioural Economics on the Economic Analysis of Law has gained momentum. Behavioural Law and Economics generates a better theoretical understanding of legal phenomena and offers a multitude of applications in legislation and legal adjudication. This volume is testament to the growing and thriving Law and Economics movement in Europe. The European Law and Economics community has steadily grown and the yearly Law and Economics Conference at the law faculty of the University of Lucerne has successfully become a guiding star in the vast sky of Law and Economics. (shrink)

Research in the subject area of economics (as a social science) has defined its ontologie of scientific investigation through economic methodology; a philosophical approach entailing the proviso of empirical evidence and backed by an understanding of human interaction in their natural habitat. The contention of economic methodology being refuted for its non-scientific means of investigation and particularly with the application of Ceteris Paribus (CP) law, has been critically addressed in this article, with Sierra Leone as a case example. Sierra (...) Leone is a complex economy and issues surrounding the assumption of CP has been brought to the fore, with a view of the political economy structure being made transparent so as to make it possible for economists to address critical issues surrounding corruption (exogenous factors), not accounted for in econometric modelling. This is not necessarily that which is considered as the most obvious, with the use of CP concept, for example, the influence of naturally occurring incidents like adverse weather conditions, flooding and earthquakes. (shrink)