On Theoretical Features And Practical Significance Of Law And Economics

Law and Economics introduces the transaction cost and the economic analysis of law,which is a great breakthrough in law theory domain and methodology. Law and Economics isechoed by the economic society and configures the social resources properly and effectively,thus meet the people’s requirement for the certainty of rationality in the science era.Coase theorem of Law and Economics shows that, under condition of the presence oftransaction cost, the initial definition of legal rights is of great importance, especially forstatutory law countries like China. Obviously, the rapid development of Law and Economicscannot stand away from the introduction of transaction cost. Law and Economics connectsLaw to Economics through the transaction cost, and makes the two independent disciplineshave more common languages. Law and Economics can show legal relationships in a moreexplicit way, clarify that Law and Economics could build the legal relationships into severalmathematical relationships by ways like statistical and mathematical modeling through HandFormula, and apply the quantitative analysis method of Economics to the analysis of legalissues, thus establish the preliminary Quantitative Analysis Method, and which is a majorrevolution in the Law domain.Our rule of law is not perfect, so we should absorb the essence of Law and Economicstheory with an open and critical mind, thus expecting that we can suck up the cream andprovide more implications for Chinese rule of law in the market economic environment.