The Economics Of Civil And Common Law [Paperback]

Law is a strange beast. It is often thought of as moral, yet morality and law do not often coincide. It is supposed to encourage individuals to act in accordance with societal wishes, such as the protection of intellectual property encourages someone to invent new products and thereby increase the level of technology, productivity, and economic activity in our economy. Yet law often provides perverse incentives that cause individuals, or even the State, to act in discordant, and therefore inefficient, ways. More than anything else, law in its various forms creates the working rules of an economy, for better or for worse. The popular refrain 'there ought to be a law' is a desire to alter future outcomes when current or past outcomes seem to the public to be inconsistent with their notions of fairness and justice. Regardless, many, if not most, laws applied to our economic system create severe inefficiencies such as minimum wage legislation and rent control laws; these actually serve to deny individuals work and shelter in a haphazard and capricious manner. Law also dictates property rights, yet eminent domain lets the State take it away with seemingly arbitrary compensation to the owner. It is for this reason that workers, employers, managers and others have a stake in understanding the interplay between law and economics and how to evaluate laws to determine whether and how their business property and equity may be impacted by them. It is also incumbent upon individuals to understand the process of rulemaking as a mechanism that can be designed to reduce the transactions costs that cause us to resort to the legal system to resolve disputes. One unique aspect of this book is that it is written with both economists and non-economists in mind. Another difference is that this text does not concern itself with criminal law, which is left to a separate book in the Business Expert Press economics collection. A final difference is that this text discusses the legal organizal#K