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Fairness Vs. Economic Efficiency: Lessons from an Interdisciplinary Analysis of Talmudic Bankruptcy Law

Author

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  • Lipschütz Itay

    (Yeselzon Institute of Advanced Torah Studies, Bar-Ilan University, Ramat-Gan, Israel)

  • Schwarz Mordechai E.

    (Economis and Management, The Open University of Israel, 1 University Road, Ra’anana43537, Israel)

Abstract

Bankruptcy problems are commonly associated with economic disasters, but can also emerge due to extraordinary economic performance The choice of a sharing rule has a significant potential effect on the economy’s general equilibrium. The economic literature hitherto neglected the search for an economically optimal bankruptcy solution and concentrated mainly on normative axiomatizations of sharing rules. However, its findings did not attract much attention of legal scholars. The purpose of this article is to create a symposium between the economic and legal literature on bankruptcy based on our interdisciplinary analysis of a fascinating polemic conducted by Jewish Law scholars over the course of fifteenth centuries about the appropriate bankruptcy solution.

Suggested Citation

  • Lipschütz Itay & Schwarz Mordechai E., 2020. "Fairness Vs. Economic Efficiency: Lessons from an Interdisciplinary Analysis of Talmudic Bankruptcy Law," Review of Law & Economics, De Gruyter, vol. 16(3), pages 1-38, November.
    • Handle: RePEc:bpj:rlecon:v:16:y:2020:i:3:p:38:n:2
    DOI: 10.1515/rle-2016-0070
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    References listed on IDEAS

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    More about this item

    Keywords

    bankruptcy; priority; sharing rules; fairness approach; economic approach;
    All these keywords.

    JEL classification:

    • K35 - Law and Economics - - Other Substantive Areas of Law - - - Personal Bankruptcy Law

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