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Book review of Foundations of Economic Analysis of Law, by Steven Shavell

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Listed:
  • Dionne, Georges

    (HEC Montreal, Canada Research Chair in Risk Management)

Abstract

The book covers many subjects related to the economic analysis of basic law. It has twenty-nine chapters in seven parts or sections, a comprehensive list of references and two indexes (authors and subjects). Particular attention is devoted to the positive analysis of law, although the normative aspect is also well covered. The book is addressed to two broad audiences: economists and individuals interested in laws with no formal background in economics. The subjects covered are important for any legal system: laws related to property, accidents, contracts, crimes, and their litigation process. I very much enjoyed reading the book. It covers with great competence the relevant topics of the economic analysis of law. The book reflects the strong academic competence of the author. I recommend it to academics and professionals. I also recommend its use for teaching the economics of law in law schools, economics departments, and business schools. The only important drawback is the absence of discussion of empirical studies related to the many issues discussed in the book. But this discussion in itself would probably provide enough material for another book.

Suggested Citation

  • Dionne, Georges, 2006. "Book review of Foundations of Economic Analysis of Law, by Steven Shavell," Working Papers 06-9, HEC Montreal, Canada Research Chair in Risk Management.
    • Handle: RePEc:ris:crcrmw:2006_009
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    References listed on IDEAS

    as
    1. T. Randolph Beard, 1990. "Bankruptcy and Care Choice," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 626-634, Winter.
    2. Dionne, Georges & Gagne, Robert & Gagnon, Francois & Vanasse, Charles, 1997. "Debt, moral hazard and airline safety An empirical evidence," Journal of Econometrics, Elsevier, vol. 79(2), pages 379-402, August.
    3. Boyer, Marcel & Laffont, Jean-Jacques, 1997. "Environmental risks and bank liability," European Economic Review, Elsevier, vol. 41(8), pages 1427-1459, August.
    4. Steven Shavell, 1979. "Risk Sharing and Incentives in the Principal and Agent Relationship," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 55-73, Spring.
    5. Dionne, Georges & Spaeter, Sandrine, 2003. "Environmental risk and extended liability: The case of green technologies," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1025-1060, May.
    6. Steven Shavell, 1984. "A Model of the Optimal Use of Liability and Safety Regulation," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 271-280, Summer.
    7. Richard A. Posner, 2006. "A Review of Steven Shavell's Foundations of Economic Analysis of Law," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 405-414, June.
    8. Posey, Lisa Lipowski, 1993. "Limited liability and incentives when firms can inflict damages greater than net worth," International Review of Law and Economics, Elsevier, vol. 13(3), pages 325-330, September.
    9. Steven Shavell, 1979. "On Moral Hazard and Insurance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(4), pages 541-562.
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    More about this item

    Keywords

    Economic analysis of law; positive analysis of law; normative analysis of law; property law; accident law; contracts law; crimes law; litigation process; fairness; morality; property rights; externalities; risk-creating behavior; strict liability; negligence rule;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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