Law And Economics Of The Effectiveness Of The Proceedings

The theory of Law and Economics is also called Economic Analysis of Law .It's a kind of new theory with which law is studied, in other words, law is studied by the way of economic analysis. The theory of Law and Economics means a revolution, a revolution of research method, a new view of study of law. The theory of Law and Economics considers the most important effect of law to the society is benefit, which demands the law system to be advantaged to the optimized configuration of social wealth and achieve the maximum of social wealth. It also demands us to decrease the social cost, make use of the social resource and increase the social wealth to the best of our abilities. The famous American scholar on the theory of Law and Economics Richard .A. Posner said, " Thesecond meaning of Justice —that is the moat popular meaning-----is efficiency." In thereal life, the limited resource of suit isn't used very well. The phenomena of small-claim suits, misused suits and repetitious suits are very popular. So the problem of improving the efficiency of suit and developing the benefit of law must be solved by us . In the author's view, to analyse this problem by the way of the theory of Law and Economics in order to improve the benefit of law is a good key to the conflict between justice and efficiency.The whole article is formed with 4 parts . In Parti , starting from the phenomena of small-claim suits, misused suits and repetitious suits , the reason why the efficiency of suit in our country isn't good is analysed , including "The amount of suits is large." "The cost of suits is high." "The retardation of suits is serious." and so on .In Part2, the basic principles of the theory of Law and Economics are introduced, including Pareto Superiority, Coase Theorem, Posner Theorem, Nash Equilibrium and so on. Part3 is the main part of this article . In this part, by the way of the theory of Law and Economics , the causes of low efficiency of suit are analysed, including the cost of suit, the benefit of suit, the aim of suit and the equilibrium of suit . We can solve the problem in these directions. In part4 , some ideas of improving the efficiency of suit are presented, including to build correct concept about suit, to rebuild the system of conciliation , to reform the system of litigant testimonyand to reform the system of the trial levels.It can not be denied that the theory of Law and Economics is limited and it can't solve all the problems that we must face on the way of reforming judicature system. The author only try to answer how to improve the efficiency of suit at the same time of perfecting the proceeding of suit so that every citizen can realize his own rights by the way of suit. Finally, we can succeed in achieving efficiency as well as justice.