MGEC37H3 Chapter Notes - Chapter 1: Progressive Tax, Ronald Coase, Gary Becker
6 Jul 2013
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Chapter 1: an introduction to law and economics. Until recently, law confined the use of economics to antitrust law, regulated industries, tax, and some special topics like determining monetary damages. Beginning in the early 1960s, this limited interaction changed dramatically when the economic analysis of law expanded into the more traditional areas of the law, such as property, contracts, torts, criminal law and procedure, and constitutional law. Will private ownership of the electromagnetic spectrum encourage its efficient use? laws keep economic efficiency in mind now: ronald coase and gary becker received nobel prizes in 1991 and 1992 in founding the economic analysis of law. Judges and other officials use economics for evaluating laws" effects on efficiency, and distribution of income: economic efficiency is a comprehensive measure of public benefits including profits of firms, the well-being of consumers, and the wages of workers. Efficiency requires the least-cost risk-bearer to take precautions against circumstances which may lead to contract breaches.
