Econ 522 Economics of Law Logistics Monday, we…



Yüklə 463 b.
tarix06.05.2018
ölçüsü463 b.
#43101


Econ 522 Economics of Law


Logistics



Monday, we…



Today: efficiency





First concept: Pareto improvement



Pareto superiority is not that useful a measure for evaluating a legal system



Next concept: Kaldor-Hicks improvement



Example



To check if something is a Kaldor-Hicks improvement, we can…



So…



Efficiency



Example: is it efficient for me to drive to work instead of taking the bus?



Some other, similar measures





To see whether something’s efficient…



But what do people actually do?



So externalities cause inefficiency



A classic example of this: the Tragedy of the Commons



Tragedy of the Commons – example



What’s going on here?



So externalities can lead to inefficiency





Another thing that leads to inefficiency: barriers to trade



Another thing that leads to inefficiency: taxes



Another example of taxes leading to inefficiency



Another thing that leads to inefficiency: monopoly



But, saying these things lead to inefficiency doesn’t automatically mean they’re bad





Important distinction: positive versus normative economics



Most of this class will be positive analysis



Friedman gives a few arguments for studying efficiency



But…



Posner gives us one argument why the law should aim to be efficient



Ex-ante consent – simple example



Things are a little more complicated…



Example: new law requiring landlords to pay for their tenants’ heat



Ex-ante consent, ex-ante compensation



Limitations to Posner’s argument



This highlights some of the things efficiency is not



A more pragmatic defense of efficiency as a goal for the law



Four reasons the tax system is a better way to redistribute wealth than the legal system



So, summing up… is efficiency a good goal for the law?



For Monday…



Yüklə 463 b.

Dostları ilə paylaş:




Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©genderi.org 2024
rəhbərliyinə müraciət

    Ana səhifə