Law and Economics
By: Bhakti Ghimire Law and Economics The law and economics movement applies economic theory and method to the practice of law. It asserts that the tools of economic reasoning offer the best possibility for justified and consistent legal practice. It is arguably one of the dominant theories of jurisprudence. The law and economics movement offers a general theory of law as well as conceptual tools for the clarification and improvement of its practices. The general theory is that law is best viewed as a social tool that promotes economic efficiency, that economic analysis and efficiency as an ideal can guide legal practice. It also considers how legislation should be used to improve market conditions in return. Law and economics offers a framework with which to model legal outcomes, and common objectives with which to unify disparate areas of legal activity. The bringing together legal theory and economic reasoning has also created new research agendas in the fields of beha...