Study On Efficiency And Equity In Economic Analysis Of Law

Equity is the great expectation with which people endow law, and it is the target which traditional law pursues. However, Economics of Law, as a young and fast-developing interdisciplinary subject in west, overthrow traditional law value system and thinking manner. As the delegate of the law and economics of Chicago school, Richard Posner brought forward the point of view—"the core value of law is efficiency", which arose a great disturbance. Moreover, due to the president of Reagan appointed Posner the judge of Court of Cassation in 1981, Economics of Law made a noise in the world.However, as a new school of law, there are many learned problems must be solved. For instance, whether the scholars of Economics of Law considered the bread of disadvantaged groups while they stressed the importance of reducing transaction costs and increasing the gross of social fortune? If efficiency replace the core place of equity in law will bring some problems such as crisis of law stability and forfeiture of law authority, how to solve them? So, after analyzing the relation between efficiency and justice in Economics of Law, this paper suggests that building a harmonious society not only need efficiency, but also need the equity immediately. With underlying the fair efficiency and harmony development, our society would become an effective democracy law-oriented government.This paper consists four parts.The first part casts back the ideal sources of the equity and efficiency, and briefly introduces the process of the historical development of the economics of law. This provides a deep background and historic scheme for the latter criticism about the relation of equity and efficiency.The second part begins with transaction cost and Coase Theorem, and then discusses Posner's wealth maximizations; this part makes it clear of the definition of the efficiency on the economics and the demonstration and status of it.Through describing the controversies between economics of Law and traditional jurisconsults, the third part sets forth a series of problems which Economics of Law's theory of the relation of efficiency and equity brought. The forth part sets forth the meaning of constructing the ideal prospect of Chinese law and the importance of the ideal prospect of Chinese Economics of law.