There is significant interaction between the study of economics and with law and policy formation. While private law aids individuals and groups willing to enter into free market agreements, public law seeks to correct the shortcomings of a free market system through economic and social regulation. Law and Economics attempts to explain the decisions of legislators, prosecutors, judges, and administrators based on Economic principles. The rational choice model, which underpins most of modern economics, has shown to be immensely valuable in understanding (and predicting) how people behave when faced with various legal limitations. This positive analysis helps the stakeholders involved in law-making or implementation of law about the probable consequences of their decisions.
Research Methodology
To conduct research in the discipline of economics and the intersection between law and the subject, one must understand research methodology in general. Given below is a link to help you get started with that:
- Alessio M. Pacces and Louis Visscher, Methodology of Law and Economics (2011)
For readers who are just getting started:
Introductory readings:
- Lewis Kornhauser, The Economic Analysis of Law (2022)
- Robert Cooter and Thomas Ulen, Law and Economics (2016)
- Richard Posner, The Law and Economics Movement, The American Economic Review (1987)
- Eugene Allen Gilmore, The Relation of Law and Economics, Journal of Political Economy (1917)
Foundational readings:
- Richard Posner, An Economic Analysis of Law (1973)
For readers with basic understanding:
- George M. Cohen, Posnerian Jurisprudence and Economic Analysis of Law: The View from the Bench, University of Pennsylvania Law Review (1985)
- Jennifer Arlen and Lewis A. Kornhauser, Does the Law Change Preferences (2021)
- Shruti Rajagopalan, Constitutional Change: A Public Choice Analysis, Oxford Handbook of the Indian Constitution (2016)
- Christine Jolls et al, A Behavioral Approach to Law and Economics, Stanford Law Review (1988)
Free online resources:
- The Journal of Law and Economics, Chicago Law School
- Asian Journal of Law and Economics, Asian Law and Economics Association
- The Encyclopedia of Law & Economics
Casual references:
- Shruthi Rajagopalan has a regular column on Live Mint.
- The Art and Science of Economic Policy, in conversation with Vijay Kelkar and Ajay Shah.
- The Public Choice Theory, Amit Verman in conversation with Pavan Srinath.
Note from the Editors:
Dear reader, as you may have observed – the literature predominantly is produced in the context of the global north, hence there is a dearth of articles or books examining the relationship between economics and the law in the global south (including India).
We sincerely hope that as a reader, you may take up the initiative to write on such topics in the context of the global south (and hopefully publish with us!). In that spirit, we wish happy reading!
Also, if you feel we missed out on any literature/resource or have a recommendation that we can add to this section, please do let us know. Even if you do not have any recommendations, any feedback is much appreciated. Thank you!