On The Advantages Of Law And Economics And Related Issues

Law and Economics originates from the United States in 1960's. It is a new branch of learning formed through the integration of legal science and economics, imbued with powerful developing advantages. It could be regarded as the branch of legal science as well as the branch of economics. The core of its theory is that all activities relating to law including legislation, judicature and the whole legal system, as a matter of fact play the role of distributing rare resources. Thus, these activities could be analyzed and guided with the methods of economics, and should take the efficient distribution and reasonable application of resources as the target, namely maximization of efficiency. As Law and Economics is still in rapid development, only a primary definition for it is available at present stage: it is a branch of learning which observes and studies the formation, structure, process, effect, efficiency, results and future development of law by the application of the methodology and theories of economics, mainly including microeconomics, welfare economics, public choice theory and other positive and normative ways as well. Depending on economics, the traditional legal science that used to lay stress on qualitative and abstract analysis then acquires the ability of quantitative analysis. This brings significance to civil and commercial law too. With the guidance of Law and Economics, it will be more impartial and fair in the solution of cases relating to distribution of interests, and therefore its spirit of holding equality and freedom, family ethics, priority of efficiency and giving consideration to fairness shows in reality. To se up a market economy and society of rule of law, China can not refuse Law and Economics, and on the other hand, the development of the latter also relies on the maturity of market economy, cultivation of law culture and the progress of the society.Starting from the controversy between Professor R.A. Posner and Dworking and three famous legal literatures—The Death of Contract, The Regeneration of Contract and The New Social Contract, this article approaches Law and Economics from a unique angle and expounds its advantage in development and acceptance as an intersecting subject due to the power of economics. The article goes further to explicate the advantages of Law and Economics in dealing with realistic problems by linking to some real and designed cases of tort, family, business and society, provisions of indemnification in social law and public policy on business where we can find that the analytical method of Law and Economics provides with a direct point of view, a flexible and dialectical solution to problems; it also urges the...