LA9F7-20 Economic Analysis of Law

Introductory description

The aim of the module is to provide students with an introduction to the theoretical ideas and applications of law and economics (supplemented by suitable applications of these ideas in a variety of legal contexts), and to ways in which economic reasoning has been applied to legal problems.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The topics that will be covered in this course are:

1. Foundations of economic theory and method

2. Property Law: An economic analysis

3. Contract Law: An economic analysis

4. Torts: An economic analysis

5. Criminal Law: Economic analysis

6. Economic analysis of civil procedure

7. Behavioural law and economics

8. Law and institutional economics

Learning outcomes

By the end of the module, students should be able to:

• Have a good knowledge and understanding of knowledge of the theoretical ideas and applications of law and economics
• Have a good knowledge and understanding of legal and economic constraints and considerations when applying legal measures
• Understand the relationship between economics and the law in devising policy responses
• Demonstrate transferable and interdisciplinary skills, including the ability to communicate with their peers to exchange ideas and information
• Work successfully in collaboration with others
• Use research tools and resources, including economic and legal resources, and reference material correctly
• Effectively articulate arguments orally and in writing
• Identify issues, formulate questions and engage in problem-solving
• Be able to apply these ideas and methods in a variety of different legal contexts
• Critically evaluate the use of economic evidence and advice in the adoption of policy
• Critically evaluate legally-binding measures

Indicative reading list

The principal texts for the module will be Cooter & Ulen, Law & Economics (Pearson 6th ed. 2013
or most recent), and Devlin, Fundamental Principles of Law & Economics (Routledge 2014). Other
texts that will be consulted include:
Posner, Economic Analysis of Law (Aspen 9th ed. 2014)
Miceli, The Economic Approach to Law (Stanford 2d ed. 2008)
Friedman, Law's Order (Princeton UP 2000)
Butler, Drahozol & Shepherd, Economic Analysis for Lawyers (Carolina Academic Press 3d ed.
2014)
Shavell, Foundations of Economic Analysis of Law (Belknap Press 2004)
North, Institutions, Institutional Change and Economic Performance (Cambridge UP 1990)
Cooter & Schaefer, Solomon's Knot: How Law Can End the Poverty of Nations (Princeton UP 2012)
Williamson, The Economic Institutions of Capitalism (Free Press 1985)
Mueller, Public Choice III (Cambridge UP 2003)
Journal Articles:
Coase (1960) 'The problem of Social Cost' 3 Journal of Law and Economics 1
Calabresi (1967) 'Some thoughts on Risk Distribution and the Law of Torts' 70 Yale L J 499
Calabresi & Melamed, (1972) 'Property Rules, Liability Rules and Inalienability: One View of the
Cathedral,'85 Harvard L Rev 1089
Leff (1974) 'Economic Analysis of Law: Some Realism about Nominalism,' 60 Virginia L Rev 451
Posner, 'An Economic Theory of the Criminal Law,' (1985) 85 Columbia L Rev 1193
Cooter & Rubinfeld, (1989) 'Economic Analysis of Legal Disputes and Their Resolution,' 27 Journal
of Economic Literature 1067
Sunstein, Jolls & Thaler, (1998) 'A Behavioural Approach to Law and Economics,'
50 Stanford L Rev 1471
Williamson, (2000) 'The New Institutional Economics: Taking Stock, Looking Forward,' 38 Journal
of Economic Literature 595
Wright & Ginsburg, 'Behavioral Law and Economics: Its Origins, Fatal Flaws and Implications for
Liberty,' (2012) 106 Northwestern L Rev 1033

View reading list on Talis Aspire

Subject specific skills

SUBJECT KNOWLEDGE AND UNDERSTANDING

1. Have a good knowledge and understanding of: knowledge of the theoretical ideas and applications of law and economics
2. Have a good knowledge and understanding of legal and economic constraints and considerations when applying legal measures to economic problems.
3. Understand the relationship between economics and the law in devising policy responses to economic problems.
   COGNITIVE SKILLS
4. Identify issues, formulate questions and engage in problem-solving
5. be able to apply these ideas and methods in a variety of different legal contexts
   SUBJECT-SPECIFIC/PROFESSIONAL SKILLS
6. Critically evaluate the use of economic evidence and advice in the adoption of policy.
7. Critically evaluate legally-binding measures

Transferable skills

)KEY SKILLS

1. Demonstrate transferable and interdisciplinary skills, including the ability to communicate with their peers to exchange ideas and information.
2. Work successfully in collaboration with others from the same discipline.
3. Use research tools and resources, including economic and legal resources, and reference material correctly
4. Effectively articulate arguments orally and in writing