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Law, economics and Calabresi on the future of law and economics

Author

Listed:
  • Alain Marciano

    (University of Montpellier)

  • Giovanni Battista Ramello

    (Università del Piemonte Orientale)

Abstract

There exists a distinction between ‘law and economics’ and the ‘economic analysis of law’. The former, corresponding to Coase’s approach, consists in taking legal rules into account insofar as they influence economic activities. The latter, associated to Posner’s name, consists in using economics to analyze legal problems. Methodologically speaking, if one admits that the economic analysis of law consists in using economic tools to analyze legal problems, Calabresi’s own work must be classified as such. However, Calabresi has always insisted that his own approach differs from Posner’s economic analysis of law. In this paper, we take the opportunity of Calabresi’s new book—The Future of Law and Economics—to revisit Calabresi’s approach to law and economics. In his book, Calabresi explains that the economic analysis of law is unsatisfactory because economics is too narrow. He insists on the need to amplify economic analysis by: first, adopting a more realistic approach à la Coase; second, taking merit goods into account; and third, including individuals’ propensity to be altruistic. We analyze these three aspects and show that it leads to a certain ambiguity in terms of the distinction between ‘law and economics’ and the ‘economic analysis of law’.

Suggested Citation

  • Alain Marciano & Giovanni Battista Ramello, 2019. "Law, economics and Calabresi on the future of law and economics," European Journal of Law and Economics, Springer, vol. 48(1), pages 65-76, August.
    • Handle: RePEc:kap:ejlwec:v:48:y:2019:i:1:d:10.1007_s10657-019-09619-4
    DOI: 10.1007/s10657-019-09619-4
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    References listed on IDEAS

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    1. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    2. Alain Marciano & Giovanni Battista Ramello, 2018. "Calabresi: Heterodox Economic Analysis of Law," Post-Print hal-02306824, HAL.
    3. Marciano, Alain, 2012. "Guido Calabresi's economic analysis of law, Coase and the Coase theorem," International Review of Law and Economics, Elsevier, vol. 32(1), pages 110-118.
    4. Peter T. Leeson, 2019. "Do we need behavioral economics to explain law?," European Journal of Law and Economics, Springer, vol. 48(1), pages 29-42, August.
    5. Juergen G. Backhaus, 2017. "Lawyers’ economics versus economic analysis of law: a critique of professor Posner’s “economic” approach to law by reference to a case concerning damages for loss of earning capacity," European Journal of Law and Economics, Springer, vol. 43(3), pages 517-534, June.
    6. Ronald H. Coase, 2000. "The new institutional economics," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 1, Edward Elgar Publishing.
    7. Coase, R H, 1996. "Law and Economics and A. W. Brian Simpson," The Journal of Legal Studies, University of Chicago Press, vol. 25(1), pages 103-119, January.
    8. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 357-376, October.
    9. Rosolino A. Candela & Vincent J. Geloso, 2018. "The lightship in economics," Public Choice, Springer, vol. 176(3), pages 479-506, September.
    10. Harnay, Sophie & Marciano, Alain, 2009. "Posner, Economics And The Law: From €Œlaw And Economics†To An Economic Analysis Of Law," Journal of the History of Economic Thought, Cambridge University Press, vol. 31(2), pages 215-232, June.
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    Cited by:

    1. Giovanni B. Ramello & Stefan Voigt, 2020. "Let the data tell their own story: a tribute to Ted Eisenberg," European Journal of Law and Economics, Springer, vol. 49(1), pages 1-6, February.
    2. Gianna Lotito & Matteo Migheli & Guido Ortona, 2020. "Transparency, asymmetric information and cooperation," European Journal of Law and Economics, Springer, vol. 50(2), pages 267-294, October.

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    More about this item

    Keywords

    Buchanan; Calabresi; Coase; Posner; Economic analysis of law; Law and economics; Merit goods; Altruism; Political economy;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • K0 - Law and Economics - - General

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