Timeless economics

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Posts Tagged ‘hard knock school

My Bit Knowledge of a Hard Knock Topic Challenge

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This article is a student’s perception on how law and economics apply. Law and economics requires a lot of successive studies and is not a very easy topic. As a student, we’ve just discuss law and economics for four months and my knowledge about law and economics is not that strong. This is a compilation of Law and economics interesting finds.
Law and economics applies to Public choice, constitutional public economy, norms and values, anthropology, sociology, development and other areas that you are not expecting law and economics to be.

Law and economics has 4 parts (MM,23):
-how to explain the law, or the economics of law
-How law can promote efficiency
-economic impact analysis(how law affects economic performance)
-Description of what happens in the decision making where law and economics are intricately intertwined
(Oroncesval, law and economics-notes)

Some Interesting finds:

Law and economics of anti discrimination law, across a variety of contexts including discrimination in labor markets, housing markets, consumer purchases, and policing. The different models of discrimination based on animus, statistical discrimination, and cartel exploitation are analyzed for both race and sex discrimination. (John Dunohue, “The Law and Economics of Antidiscrimination Law” Handbook of Law and Economics. Ed. Mitch Polinsky and Steven Shavell. Elsevier, 2006.)

Civil Justice system from Law and economics shaped by Coase theorem(1960):in the absence of transaction costs, any well-specified allocation of legal rights is efficient, because interested parties will bargain to assign rights to those who value them the most.( Kessler,Empirical Research on the Civil Justice System: Current Findings from Law and Economics)

Behavioral Law and Economics presents new findings in cognitive psychology and behavioral economics, which show that people are frequently both unselfish and over-optimistic; that people have limited will power and limited self-control; and that people are “boundedly” rational, in the sense that they have limited information-processing powers, and frequently rely on mental short-cuts and rules of thumb. Understanding this kind of human behavior has large-scale implications for the analysis of law, in areas including environmental protection, taxation and tax compliance, constitutional law, voting behavior, punitive damages for civil rights violations, labor negotiations and strikes, and corporate finance. Behavioral Law and Economics offers many new insights into these fields and suggestions for legal reform. With a better knowledge of human behavior, it is possible to predict the actual effects of law, to see how law might actually promote society’s goals, and to reassess the questions of what law should be
doing.(Publisher’s comments on Behavioral Law and Economics by Cass Sunstein, Powell’s book)

Law and economics on a student’s perception:

Law and economics is a combination of applying law and using economic theories . It’s a difficult topic hence, it involves economics and law. It discuss mostly about a country’s situation. Like the situation of not voting is rational, while the people are encouraging you to vote when election time come because they say your vote matters.
And that the economic problem, what to produce, how to produce, who will produce and who will consume asserts in this topic. Economics has a wide topic it not just only discuss about business but it also discuss about political economy and now the law and economics. The law in law and economics has something to do with the common law or the judge made law a civil and statics. Positive law and economics has something to do with the all time favorite motto of my father “tooth for a tooth an eye for an eye” while normative law and economics more applies in statutory law.
Law and economics is a hard knock topic that I, myself is not that thoroughly well-specified, i have a little bit knowledge but I know it’s not enough. I choose the topic law and economics because I want to proceed to law. So, maybe when I’m through with economics I will proceed to law and I will update my blog for further developments and further construction.

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Written by ladykish

March 20, 2009 at 11:32 AM