The aim of the unit of study is to provide an understanding of the economic analysis of law and to clarify fundamental differences between legal argument and the analysis of public policy. The unit defines the role of government within the framework of welfare economics and examines the social and economic effects of legal regimes within that framework. Particular attention is given to the concept of a competitive market, to the available empirical evidence on market failure, and to the need for government intervention in response to market failure and its negative consequences for social justice. Topics covered include: theoretical concepts of social justice; social insurance; externalities and the environment; monopoly regulation, tort rights and remedies; asymmetric information, adverse selection and moral hazard with applications to medical malpractice; agency, corporate governance and managerial incentives; family law; taxation; and the measurement of inequality.
2 x 2hr seminars/week for 10 weeks
1000wd essay on a set problem (15%), take-home assignement (15%), class participation and presentation (10%) and 2hr exam (60%)
This unit satisfies the Jurisprudence/Part 3 requirement of the JD.
LAWS3036 or LAWS3447