Posner's Economic Analysis of the Law

Richard A. Posner, a judge on the U.S. 7th Circuit Court of Appeals and a lecturer at the University of Chicago Law School, is one of the leading figures in the field of law and economics. This specialty applies economic principles to the study of the law. Posner has written numerous books, but his "Economic Analysis of the Law" is one of the classics in the field.

Identification

Posner published his "Economic Analysis of the Law" in 1973. He contended that judges do and should use economic principles to inform their decisions.

Effects

Posner argued that judges should take into consideration the possible effects of their rulings. In a lawsuit that awards damages, for example, Posner wrote that judges should consider the effect on people's future actions and impose the ruling that will be most efficient.

Significance

Economists--such as Ronald Coase and Gary Becker--have been concerned with economics and legal issues, but Posner's work represented an early example of a legal scholar using economics to analyze the law. Posner's work has had tremendous influence among legal scholars.

Expert Insight

In the Online Encyclopedia of Law and Economics, Posner observed that few areas of the law are untouched by economics. Areas include taxation, anti-trust law, torts, intellectual property, contracts and even family law.

Fun Fact

Posner and economist Gary Becker--a Nobel laureate in economics--write about law and economics in their shared blog, The Becker-Posner Blog.

References

• Posner, Hayek and the Economic Analysis of Law
• Encyclopedia of Law and Economics

Resources

• The Becker-Posner Blog
• Richard A. Posner's homepage - University of Chicago