Law and Economics
This module is planned to introduce you to law and legal institutions. The course will study the economic analysis of law. The focus will be on civil law however a few lectures will examine economic aspects of criminal law. A particular feature is the major topic on intellectual property rights. This is a relatively new area of economics and should be of topical relevance. Environmental damage is often caused by accidents for instance in the BP Deep-water Horizon oil-spill. There will be a topic on tort. This is the relevant part of law, which aims to provide incentive to correct externalities associated with accidents and environmental damage. Other topics to be studied include contract law, corporate law and governance.
The intended audience is third year students on economics degrees. The course is not intended for non-specialists.
An appropriate legal framework can help to resolve many environmental problems. A prime example being the tragedy of the commons.
Many of our students’ jobs will involve law. Thus understanding of the economic aspects of law will help employability.
Ethics and Corporate Responsibility
Appropriate design of company law will encourage ethical behaviour in the corporate world.
Research in Teaching
The course will be informed by research Prof Kelsey and Dr Chakravarty are undertaking in law and economics.
Full module specification
|Module title:||Law and Economics|
BEE2025 and BEE2026
|Duration of module:||
Duration (weeks) - term 1: |
The module aims to enable you to understand key topics in the economic analysis of law. These include law of property, tort law, contract law, deterrence of crime and intellectual property rights. The course will develop skills such as problem solving and essay writing.
It is complementary with the research interests of the economics department, which specialises in risk and uncertainty. It will draw on the research expertise of faculty, especially Dr Chakravarty who has a doctorate in the area.
The course is relevant for employment since law is now an important aspect of many careers.
ILO: Module-specific skills
- 1. recognise what has been popularly studied in the area of Law and Economics
- 2. identify those key terms and concepts in Law and Economics, which lead to an understanding of legal issues and institutions.
ILO: Discipline-specific skills
- 3. analyse and compare microeconomics with legal issues and institutions
ILO: Personal and key skills
- 4. deliver coherent argument in written work, including coherent arguments for complex issues involving economic analysis of legal issues such as property rights, liability or contracts.
- 5. demonstrate analytical and critical thinking;
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Contact hours||22||Lectures (11 x 2 hour)|
|Guided independent study||128||Reading, problem solving and essay preparation|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Problem Sheets||2 hours||1-5||Discussions in class|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Exam||70||2 hours||1-5||Notes on ELE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Essay and Exam||Exam (100%) 2 hours||1-5||August examination period|
- Property Rights - The Coase theorem, the tragedy of the commons.
- Tort Law - Strict Liability, Negligence, Unilateral versus Bilateral accidents, Risk aversion and insurance.
- Intellectual Property Rights: Patents, copyright and trade secrets.
- Contract Law
- Economics of the Legal Process
- Crime and Punishment
- Corporate Law and Governance
- Health, Safety and Environmental Risks
Indicative learning resources - Basic reading
- Cooter and Ulen, (2012), Law and Economics, (6th edition), Pearson.
- Posner, R., (2011), Economic Analysis of Law, (8th edition), Wolters Kluwer.
- Shavell, Economic Analysis of Accident Law, Harvard, 1987.
Module has an active ELE page?
Last revision date