Economic Analysis of Law

Economic Analysis of Law

Professor Steven Shavell
Fall 2019 course
M, T 1:15pm - 2:45pm in Hauser Hall Room 102
3 classroom credits

Prerequisites: None

Exam Type: In Class

What effects does law have? Do corporations pollute less, market safer products, and adhere more often to their contractual obligations in order to avoid suit? Is innovation spurred by intellectual property rights? Are individuals led to comply with the tax rules, drive more carefully, and commit fewer crimes by the prospect of sanctions for wrong doing?

Such questions about the influence of legal rules on outcomes––and about the social desirability of the outcomes––have been investigated by legal scholars and economists in a systematic manner since the 1970s. Their approach is widely considered to be intellectually important and to be of significant value in practice.

This course will survey the field of economic analysis of law and illustrate its relevance to judicial decisions, legal argument, expert witness work, and public policy. The subjects covered are the major building blocks of law: torts, contracts, property law, criminal law, and the legal process.

The course will also address the tension between functional, economic arguments and those phrased in moral terms. The course is aimed at a general audience of students; no background in economics is needed to take it.

Subject Areas: Regulatory Law, Government Structure & Function, Disciplinary Perspectives & Law