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Contents
List of figures ix
List of tables x
List of contributors xi
Introduction 1
Jürgen G. Backhaus
PART I BASICS OF THE LAW AND ECONOMICS APPROACH
1 Coase theorem and transaction cost economics in the law 7
Francesco Parisi
2 Property rights and their partitioning 40
Christian Müller and Manfred Tietzel
3Legal change in economic analysis 53
John N. Drobak and Douglass C. North
4Positive, normative and functional schools in law and economics 58
Francesco Parisi
5 Commons and anticommons 74
Francesco Parisi and Ben Depoorter
PART II PRIVATE LAW AND ECONOMICS
6The economics of tort law 87
Giuseppe Dari Mattiacci and Francesco Parisi
7Family 103
Margaret Brinig
8 Inheritance 119
Richard E. Wagner
9 Intellectual property and the markets of ideas 127
Giovanni B. Ramello
10 Incomplete contracts and institutions 145
Antonio Nicita and Ugo Pagano
PART III PUBLIC LAW AND ECONOMICS
11 Central bank 165
Z
ˇ
eljko S
ˇ
evic´
12 Constitutional economics I 184
Francesco Farina
13 Constitutional economics II 223
Ludwig Van den Hauwe
14 Administrative law and economics 239
Jean-Michel Josselin and Alain Marciano
15 Property 246
Thomas J. Miceli
16 The European Union’s institutional design 261
Elisabetta Croci Angelini
17 Subsidiarity 280
Jürgen G. Backhaus
PART IV LABOUR LAW AND ECONOMICS
18 Labour contracts 289
Don Bellante
19 Company board representation 297
Jürgen G. Backhaus
20 Employment security through dismissal protection: market versus
policy failures 311
Christoph F. Buechtemann and Ulrich Walwei
PART V REGULATION, TAXATION AND PUBLIC ENTERPRISE
21 Structures of public enterprise 329
Jürgen G. Backhaus
22 Environmental law and economics 345
A. Allan Schmid
23 Environmental policies choice as an issue of informational
efficiency 350
Donatella Porrini
24 Tradable emission rights 364
Edwin Woerdman
25 Regulatory taxation 381
Jürgen G. Backhaus
PART VI DISPUTE RESOLUTION
26 Dispute resolution 393
Thomas J. Miceli
vi The Elgar companion to law and economics
PART VII DIFFERENT SOURCES OF THE LAW
27 Judicial independence 407
Sophie Harnay
28 General norms and customs 424
Jean-Michel Josselin and Alain Marciano
29 Science as a source of law 433
Peter R. Senn
30 Social science as a source of the law 442
Peter R. Senn
31 Cognitive science 453
John N. Drobak
32 Connections with law and society research 459
Jürgen G. Backhaus
PART VIII TOWARDS AN IDEAL ECONOMIC ANALYSIS OF A
LEGAL PROBLEM
33 Towards an ideal economic analysis of a legal problem 465
Jürgen G. Backhaus
PART IX CLASSICAL AUTHORS IN LAW AND ECONOMICS
34 Cesare Beccaria (1738–94) 475
Francesco Parisi and Giampaolo Frezza
35 Franz Böhm (1895–1977) 489
Heinz Grossekettler
36 John R. Commons (1862–1945) 499
Warren J. Samuels
37 Walter Eucken (1891–1950) 508
Leland B. Yeager
38 Otto von Gierke (1841–1921) 519
Jürgen G. Backhaus
39 Augusto Graziani (1865–1938) 522
Giampaolo Frezza and Francesco Parisi
40 Robert Lee Hale (1884–1969) – legal economist 531
Nicholas Mercuro, Steven G. Medema and Warren J. Samuels
41 Friedrich August von Hayek (1899–1992) 545
Ludwig Van den Hauwe
42 Theodor Herzl (1860–1904) 559
Peter R. Senn
Contents vii
43 Rudolf von Jhering (1818–92) and the economics of justice 568
J.L.M. Elders
44 Franz Klein (1854–1926) 576
Peter Lewisch
45 Etienne Laspeyres (1834–1913) 585
Wolfgang Drechsler
46 Friedrich List (1789–1846) 590
Arno Mong Daastöl
47 Achille Loria (1857–1943) 607
Giampaolo Frezza and Francesco Parisi
48 Karl Marx (1818–83) and Friedrich Engels (1820–95) 618
Heath Pearson
49 Carl Menger (1840–1921) 627
Richard E. Wagner
50 Plato (c. 427–349 BC) 635
Wolfgang Drechsler
51 Wilhelm Roscher (1817–94) 642
Erich Streissler
52 Emil Sax (1845–1927) 652
Manfred Prisching
53 Gustav von Schmoller (1838–1917) 662
Helge Peukert
54 Adam Smith (1723–90) 672
Helge Peukert
55 Werner Sombart (1863–1941) 683
Günther Chaloupek
56 Lorenz von Stein (1815–90) 689
Heinz Grossekettler
57 George Joseph Stigler (1911–92) 700
Peter R. Senn
58 Pietro Trimarchi (1934–) 709
Giampaolo Frezza and Francesco Parisi
59 Thorstein Veblen (1857–1929) 727
Heath Pearson
60 Max Weber (1864–1920) 733
Helge Peukert
61 Christian Wolff (1679–1754) 745
Wolfgang Drechsler
Index 751
viii The Elgar companion to law and economics
ix
Figures
5.1 Game matrix 79
10.1 The unilateral hold-up problem 149
10.2 The bilateral hold-up problem 149
12.1 Role of institutions in economic integration 214
13.1 Classic prisoner’s dilemma 229
13.2 Modified prisoner’s dilemma 233
16.1 Pay-off matrix of the EU 274
16.2 Games: pay-off matrices 276
16.3 Games: tied hands matrices 278
23.1 Scheme of different environmental policy instruments 351
32.1 Sombart’s modern capitalism 460
x
Tables
7.1 A systematic representation of family law 104
15.1 Optimal remedies for externalities 251
16.1 Features of EU institutional bodies 264
19.1 Codetermination as an interlocking system 297
21.1 The Treuhand legacy 329
33.1 Different approaches to law and economics 468
xi
Contributors
Jürgen G. Backhaus, Krupp Chair in Public Finance and Fiscal Sociology,
University of Erfurt, Erfurt, Germany.
Don Bellante, Professor and Chair, Department of Economics, University of
South Florida, Tampa, FL, USA.
Margaret Brinig, William G. Hammond Professor of Law, College of Law,
University of Iowa, Iowa City, IA, USA.
Christoph F. Buechtemann, Community Resources and Information Serv-
ice (CRIS), Santa Barbara, CA, USA. Mr Buechtemann died during the
preparation of this volume.
Günther Chaloupek, Vienna Chamber of Labour, Vienna, Austria.
Elisabetta Croci Angelini, Professor of Economics, Department of Econom-
ics, University of Macerata, Macerata, Italy.
Arno Mong Daastöl, Kolbotn, Norway.
Ben Depoorter, Professor of Law, Center for Advanced Studies in Law and
Economics, Ghent University, Belgium, and Fellow, Center for Law, Eco-
nomics and Public Policy, Yale Law School, Yale University, New Haven, CT,
USA.
Wolfgang Drechsler, Professor and Chair of Public Administration and Gov-
ernment, University of Tartu, Tartu, Estonia.
John N. Drobak, John Alexander Madill Professor of Law and Economics,
Washington University, St. Louis, MO, USA.
J.L.M. Elders, Professor Emeritus, Amersfoort, The Netherlands.
Francesco Farina, Professor of Economics, Department of Economics, Uni-
versity of Siena, Siena, Italy.
xii The Elgar companion to law and economics
Giampaolo Frezza, LUMSA University, Rome, Italy.
Heinz Grossekettler, Professor of Economics, Department of Public Finance,
Westfälische Wilhelms University, Münster, Germany.
Sophie Harnay, Department of Economics, University of Reims Champagne
Ardenne, Reims, France.
Ludwig Van den Hauwe, Brussels, Belgium.
Jean-Michel Josselin, Professor of Economics, Department of Economics,
University of Rennes, Rennes, France.
Peter Lewisch, Professor of Law, Imadec University, Vienna, and Professor,
Department of Criminal Law, Imadec University, Vienna, Austria.
Alain Marciano, Professor of Economics, University of Reims Champagne
Ardenne, Reims, France.
Giuseppe Dari Mattiacci, Associate Professor, Amsterdam Centre for Law
and Economics, University of Amsterdam, School of Economics, Utrecht
University, Utrecht, The Netherlands and Visiting Professor, George Mason
University, School of Law, Arlington, VA, USA.
Steven G. Medema, Professor of Economics, Department of Economics,
University of Colorado at Denver, Denver, CO, USA.
Nicholas Mercuro, Professor in Residence, Michigan State University, Col-
lege of Law, East Lansing, MI, USA.
Thomas J. Miceli, Professor of Economics, Department of Economics, Uni-
versity of Connecticut, Storrs, CI, USA.
Christian Müller, Lecturer (Akademischer Rat) Department of Business and
Economics, Duisburg-Essen University, Duisburg, Germany.
Antonio Nicita, Assistant Professor, Department of Political Economy, Uni-
versity of Siena, Siena, Italy.
Douglass C. North, Spencer T. Olin Professor in Arts and Sciences, Depart-
ment of Economics, Washington University, St. Louis, MO, USA.
Contributors xiii
Ugo Pagano, Professor of Economic Policy, Department of Political Economy,
University of Siena, Siena, Italy.
Francesco Parisi, Professor of Law, School of Law, George Mason Univer-
sity, Fairfax, VA, USA.
Heath Pearson, Visiting Assistant Professor, Department of History, Univer-
sity of California, Berkeley, CA, USA.
Helge Peukert, Lecturer, Krupp Chair in Public Finance and Fiscal Soci-
ology, University of Erfurt, Erfurt, Germany.
Donatella Porrini, Associate Professor, Faculty of Economics, ‘Antonio de
Viti de Marco’, University of Lecce, Lecce, Italy.
Manfred Prisching, Professor, Institute of Sociology, University of Graz,
Graz, Austria.
Giovanni B. Ramello, Department of Economics, University of Carlo
Cattaneo, Castellanza, Italy.
Warren J. Samuels, Professor Emeritus of Economics, Department of Eco-
nomics, Michigan State University, East Lansing, MI, USA.
A. Allan Schmid, Distinguished Professor Emeritus, Department of Agricul-
tural Economics, Michigan State University, East Lansing, MI, USA.
Peter R. Senn, Professor Emeritus of Economics, Evanston, IL, USA.
Z
ˇ
eljko S
ˇ
evic´, Professor of Economics, The Business School, University of
Greenwich, London, UK.
Erich Streissler, Professor Emeritus, Institute of Economics, University of
Vienna, Vienna, Austria.
Manfred Tietzel, Professor of Public Finance and Economic Methodology,
Department of Business and Economics, Duisburg-Essen University, Duisburg,
Germany.
Richard E. Wagner, Harris Professor in Economics, Department of Econom-
ics and Center for Study of Public Choice, George Mason University, Fairfax,
VA, USA.
xiv The Elgar companion to law and economics
Ulrich Walwei, Institut für Arbeitsmarkt- und Berufsforschung der
Bundesanstalt für Arbeit, Nuremberg, Germany.
Edwin Woerdman, Associate Professor of Law and Economics, Department
of Law and Economics, University of Groningen, The Netherlands.
Leland B. Yeager is former Ludwig von Mises Distinguished Professor
Emeritus of Economics at Auburn University. He is an expert on monetary
policy and international trade.
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