Economic Analysis Of Criminal Law

Economic analysis method to the study of law is the revolution of means.The tradition of law is different from the direction of quantitativeanalysis .Economics lets us make a new way of understanding the legalsystem, not only on legal qualitative research, but also joined the quantitativeanalysis. Economic analysis is the organic complement of the traditional ruleof law analysis. Modern legal analysis of the rules is incomplete without theeconomic analysis. This article focuses on the qualitative and quantitativeeconomic analysis of Penal.First, this chapter I introduces the basic concepts and legal tools ofeconomic analysis. Economic Analysis of Law is called legal economics, laweconomics, the economic analysis of law, it is the discipline that analyzes thelegal issues by the methods used in economics. Mainly in the new systembased on economics theory, it uses micro-economics, public choice theoryand other relevant empirical and normative approaches inspection, toresearch legal system formation, structure, processes, effectiveness,efficiency, Innovation and future development. It includes the basic conceptsof transaction costs, profits, balance and efficiency. Transaction costs includethe costs and subsequent occurrence occurred prior to the conclusion of acontract for the cost of supervision and the cost of the contract subsequentlyoccurred, distinguished from the cost of production, namely the cost ofimplementing the contract. Transaction costs with its specific content: it is theinformation costs spent by dealing with people, with the potentialcounterparties. Maximum uses mathematical infinitesimal calculus theories.The process that consumers are to achieve maximum effectiveness, bestpractices and achieve things is Maximum. Manufacturers are to achievemaximum profits, politicians are to reach the largest number of votes, thegovernment officials are to reach the maximum tax, charitable institutions areto achieve the greatest social welfare. Therefore, maximizing the economicbehavior of each body is seen as the goal. In the classical economics, balancemeaning: First, the opposing forces are in a quantity equal in the state ofvariables equal;Secondly, the forces controlling supply and demand do nothave any kind of motivation and capacity to change the status quo, that is, thebest acts, or acts of identification, conduct balance. Economics is the study ofefficiency to be a central issue. Efficiency refers to the basic elements of theconcept of inputs and outputs, or the relationship between costs and revenues.And the legal analysis of supply and demand and the legal analysis of thecosts and benefits are the main tools in law of economic analysis, the law ofsupply products producer that is legal legislators, law enforcers, social justicepersons to provide legal products (such as the legal enactment, amendment orrepeal of an administrative punishment cases, judgment, etc.) the willingnessand ability of reunification. The legal requirements based on the pursuit ofthe objectives of maximizing the interests of consumers, refer to the purchaseof existing legal aspirations. Legal cost is the cost of the entire dynamicprocess, which is mainly the opportunity cost. Legal profit is all the netincome created by the process of the legislative, judicial, law enforcementand law-abiding.The economic analysis of law in the second chapter describes thetheoretical basis and practical significance. The theory of the new system ofeconomics plays a big role in the origin and developing of economic analysisof law. It is not the focus of his economic performance process itself, but theunderlying economic performance of property rights, namely: economicoperation system basis, the new system of economics thinks that property is aperson in control of things, a possession of another person's privileges. Thenew system of economic thought to indicate: due to transaction costs, thesystem will affect the efficiency of resource distribution. Market failure exists,but the key lies in the system of settlement arrangements, the legal systemand other systems are the subjects of study, as enterprises and the market indetermining the various activities, the law plays an important role, economicpolicies contain different institutional options, these social institutions are setby law. The article then goes on to describe the practical significance of theeconomic analysis of law, the economic analysis of law will have a profoundimpact on the Chinese law and Chinese law reform. The reason is that theemergence of economic analysis is essentially a research methodologychanges and is a revolution to the traditional legal theory. At present, thenon-existence of legal reform in China balance directly affects the rule of lawprocess. Economic Analysis of Law will promote the use and development ofChinese laws to balance the uneven changes to the legal system of marketeconomy and promote the establishment.Chapter III analyzes the crime and its prevention activities. Economicanalysis of crime jurists makes a mental economic explanation. According tothe economic theory, decision makers are rational, and this also includescriminals. Criminal is a rational basis. Rational criminal offences model is:Because he expects the profit of crime more than its expected cost, so acertain talent is in the commission of the crime. This theory is the assumptionthat proposes a new interpretation of the psychological crime, a strong powerprojection. Because the growing literature on empirical studies has shownthat crime offenders as they are rational calculation of economic models,precisely calculate the costs and benefits. Costs and benefits of carefulanalysis show that through increased crime prevention activities, socialwelfare will increase. On condition: social crime prevention activitiesincreased from the benefits at least equal to the cost of increased crimeprevention activities.Chapter IV analyzes the penalty. Economic analysis of law embodies thetraditional fair, the values of justice, while more demonstrated the value ofefficiency. It researches penalty cost, the proceeds constituent elements andtheir relationships through the cost-benefit analysis, then to analyze anddetermine how the various elements of an increase or decrease in order toreach the best deterrent effect in order to reduce the cost of criminal activity,promote the penalty for the optimum allocation of resources and improve theefficiency of the penalty. Economic analysis of law controls the shape of anew model. Through the development of severe penalty is impossible tocompletely eradicate crime, the only punishment for felonies and penalties invirtually indiscriminate devaluation. We can only control the crime in thecommunity as possible within tolerable limits, the optimal penalty efficiencyto create a new type of criminal control efficiency-oriented model. Sectionone analyzes the economic and deterrent penalties hypothesis. Section twoand three borrow tools from economics to determine how resources areeffective penalties. Penalties volume sets neither inadequate nor excessive,but must be absolutely necessary and just moderate. According to cost --profit analytical methods, it is the acquisition of input minimum of penaltythat the input of penalty must be more than the profit of crime. Maximumpenalty of their input should be in control of the unnecessary costs to theprofit received penalty limits. Finally this article makes some constructiveapproaches on how to improve the efficiency of prison and execution.