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Economics and the Law: From Posner to Postmodernism and Beyond - Second Edition
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Review
"[This book] provides an excellent introduction to the broad contours of Law and Economics. . . . It can be especially recommended to readers interested in short but very informative overviews on different aspects of this discipline."---Hans-Bernd Schäfer, Journal of Institutional and Theoretical Economics"'You can't tell the players without a scorecard,' or so vendors at a baseball game say, and the Mercuro and Medema book under review provides team scorecards and much more: intellectual histories and outlines of the dominant styles of play by the Chicago school and its New Haven opponents, the public choice school and its civic republican opposition, institutional and neoinstitutional economics, and critical legal studies as a postmodern counterweight to the various economics enterprises."---Paul H. Brietzke, Valparaiso University Law Review"The authors' primary goal, which they achieve admirably, is to provide a concise review of the major scholarly traditions that use economic analysis of the law. . . . [T]he descriptions of each tradition are clear and painstakingly evenhanded. . . . This brief volume provides a sound understanding of each tradition's virtues and weaknesses." (Constitutional Political Economy)"It is arguable that over the past 20 years, roughly the years of the Volker and Greenspan Federal Reserve Boards, the branch of study that goes by the name Law and Economics has had more influence on public economic policy than any other academic discourse. . . . In the face of such a shift in thinking about public policy, it is important to have a fair-minded primer that clearly explains the various aspects of thinking about law and economics in the policy arena today. This book attempts to provide just such a primer. It is notable for the clarity and fairness of its exposition of what are controversial debates about the proper direction for economic policy."---John Henry Schiegel, Southern Economic Journal
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About the Author
Nicholas Mercuro is Professor of Law in Residence at Michigan State University College of Law and a faculty member of James Madison College. He has authored or edited seven books and is the founder and coeditor of the book series The Economics of Legal Relationships. Steven G. Medema, Professor of Economics at the University of Colorado at Denver, is the author of Ronald H. Coase and editor of the Journal of the History of Economic Thought.
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Product details
Paperback: 400 pages
Publisher: Princeton University Press; 2 edition (August 20, 2006)
Language: English
ISBN-10: 0691125724
ISBN-13: 978-0691125725
Product Dimensions:
6.1 x 1 x 9.1 inches
Shipping Weight: 1.3 pounds (View shipping rates and policies)
Average Customer Review:
4.6 out of 5 stars
6 customer reviews
Amazon Best Sellers Rank:
#631,315 in Books (See Top 100 in Books)
Houman Shadab's review is right on the money -- including what's left _out_ of this otherwise excellent introductory work. Since I like Hayek, Barnett, and Rothbard, I find the omission disappointing -- but c'est la vie.Anyway, if you're looking for a solid overview of the various schools of thought involving the relations between law and economics, this volume is a great place to start. (_Complete_ newcomers might also want to pick up Dennis Patterson's _Companion to Philosophy of Law and Legal Theory_, which includes a fine essay on "Law and Economics.")One tremendous merit of the present volume is that it doesn't limit itself to the "Chicago school." The U of Chi crowd gets a single chapter, and the rest of the book is devoted to the other schools of thought Mr. Shadab has helpfully listed below. The resulting volume is therefore pretty comprehensive (with the exceptions already noted).Readers interested in this topic may want to read Thomas Miceli's _Economics of the Law_ next. I don't personally favor the mathematical-models approach (for the usual Misesian/Rothbardian reasons) -- but Miceli's volume is a fine introduction to that approach and will afford the reader the opportunity to judge it on its merits.
The authors know what they are talking about. The book is a survey of the main strains of law and economics theories and approaches. It provides examples of each theory and that can be illuminating. However, more examples could have given a better sense to the differences across the several theories. The notes are well written and provide all you need for further reading.
This is a much better introduction to law and economics than the conventional textbook that only gives you the orthodox neoclassical view. It isn't all easy reading but if you have had an introductory course in economics and have some patience it is a great book.
What is law & economics? It is the school of jurisprudence in which the tools of microeconomic analysis are used to study law. Those of us who practice economic analysis have a deceptively simple task. We translate some legal doctrine into economic terms. We then apply a few basic principles -- cost-benefit analysis, collective action theory, decision-making under uncertainty, risk aversion, and the like -- to the problem. Finally, we translate the result back into legal terms.Law & economics unquestionably is the most successful form of intellectual arbitrage in the history of jurisprudence. Why? Traditional forms of legal scholarship were mostly backward looking. One reasoned from old precedents to decide a present case, seemingly without much concern (at least explicitly) for the effect today's decision would have a future behavior. Yet, law is necessarily forward looking. To be sure, a major function of our legal system is to resolve present disputes, but law's main job is to regulate future behavior. The law & economics movement succeeded because it recognized that judges cannot administer justice solely retrospectively. They must also consider what rules their decisions will create to guide the behavior of other actors in the future. Even more important, however, law & economics gives judges systematic mechanisms for predicting how rules will affect behavior.Mercuro and Medema's text offers a comprehensive overview of law & economics. Unlike many texts, it is not limited to the Chicago School (as exemplified by such stalwarts as Manne, Easterbrook, and Posner). They also describe the New Haven school (classically exemplified by Calabresi), the public choice theory of Arrow, Buchanan, and others, as well as both the traditional and new institutional economics. By reminding us that law & economics is not a homogeneous field, and providing a fair commentary on each of the major traditions within the larger discipline, they offer an excellent introduction to this important area of jurisprudence.One nice touch, which makes the text useful for a wide audience, is that it does not assume familiarity with either economics or law. The introduction offers a brief historical overview of basic jurisprudence, as well as an appendix explaining basic economic principles. Consequently, the book will serve well the interests both of lawyers who need to brush up on economics and economists interested in law.Criticisms that led me to subtract one star: There is little in the way of critical evaluative judgment. Indeed, Mercuro and Medema disavow any effort at criticism. As a result, the reader is left to his own devices. Second, I am not persuaded by Mercuro and Medema's decision to include a rather lengthy chapter on critical legal studies. Criticism of law & economics has been a major project of CLS scholars, but CLS scholarship has had no influence of any significance on any of the dominant strains of law & economics thinking. In this case, moreover, the failure to exercise critical evaluative judgment means that the generalist reader may have difficulty assessing the (bogus) claims made by CLS. In general, while maintaining facial neutrality on their own part, Mercuro and Medema give far more attention to CLS and Marxist critiques of law & economics than they do to conservative critiques thereof or to law & economics criticisms of CLS.
A nice piece of work. The authors undertake a difficult task: providing a readable introduction to the varied "law and economics" movement. The first chapter is one of the better narrative explications of the idea of efficiency that I have seen. It is followed by chapters on the various schools that make up the law and economics movement, each of which provides a good,brief intellectual history of the school and a helpful exposition of its content. For the undergraduate, this book is really a service since it also provides good follow up reading in the field. For the lawyer becoming interested in economics, this may well be the best place to start. Kudos to the authors and Princeton University Press: a clear and well-written book that serves an important purpose.
Nice introduction, very clear. I think that this is the first steep in this field. After reading this book I highly recommend Cooter's book Law and Economics (3rd Edition).
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