The Precision Of Law: An Economic View

Law is a substitute for market. When transaction costs are too high to carring out some contracts which is helpful in cummulating social wealfare, law will trun out to make it better. Legislator, who different from market participants, they can not directly profit from market transactions, but just this helping them to be better observators of inspecting individual behavior effects on society, especially social costs and social benefits. More precise and more clear insight into the behavior of the economy, more better coordination of every conflict and interests, maintaining the balance of power in society. But the Legislating process itself need some social costs, which including the repeated investigation before the rule-making, the development of co-ordination during the act-writing and the following enactment and enforcement. You also should take enough attention to people's understanding and the gradually acception, which is the complying costs. However, there is a marginal increasing functional equation between the accuracy and the legislation costs. And the accuracy will increase the logic its own complication, whether legal professional groups or common people will be tired by interpretation or rigid controlled. Because of the limitation of the resources, especially the justice resourses, law-maker had to give priority to legislative efficiency. This is why certain acts were incorporated into the legal regulation and the other should be deliberately ignored by law. It involves a costs-benefits analysis which is just ahout the efficiency.Perhaps justice can replace the rigid rules and legislation to make up for finding the real facts. "Judicial activism" is a way for elite adjudicators promoting social progress, it makes judges more to himself as a social constructive designer, seraching a border of the law in the fog complications, not a simple adjudicator who just applicating rules. This only depending on the quality of the individual judges increases the flexibility of law,but also weakens the stability of the law. And the results of the justice guiding will directly determine the the proportion of judicial decisions and legislation in the contrl of law."The Precision of Law" relates to some, but not limited to technical aspects of legislation, and few people in the country to study this issue. This paper uses the theory of economics analyses interaction between legislation and judicial decisions within various factors. Also legislative and the judiciary on the impact of individual behavior is analyzed in it. This research from economics point of view hopes will give some advice to promote "The Precision of Law", and it comes on to talk about some basic problems of jurisprudence.