The Role of the Chicago School of Economics in the Genesis of a New Field of Research: 'The Economic Analysis of Law

• Author: Ciobanu, R.
• Position: Faculty of Law, Transilvania University of Brasov
• Pages: 43-48

Bulletin of the Transilvania University of Braşov

Series VII: Social Sciences • Law • Vol. 6 (55) No. 2 - 2013

THE ROLE OF THE CHICAGO SCHOOL

OF ECONOMICS IN THE GENESIS OF A

NEW FIELD OF RESEARCH:

THE ECONOMIC ANALYSIS OF LAW

Ramona CIOBANU1

Abstract: The interdisciplinary approach adopted nowadays, in terms of

law and economics, is closely linked to the Chicago School of Economics.

This has made a great contribution to the development of economic science

and to lawyers it has a special significance because within it the Law and

Economics school of thought or Economic Analysis of Law was created. The

economic analysis of law uses terms, concepts and economic institutions that

apply to different areas of law and it is meant to improve the legal norm.

Key words: economics, law, the economic analysis of law.

1 Faculty of Law, Transilvania University of Braşov.

1. Introduction

There is a link between law and

economics and this has been known since

antiquity. How to study exchange, rent,

interest, wages, without talking about

property, contract, obligation? Economists

and lawyers meet on the same ground, but

each with a different perspective:

predicting needs - the economist - and

exercise of rights - for law practitioners

[1].

The Interdisciplinary approach performed

nowadays from the perspective of law and

economics, is closely linked to the Chicago

School of Economics. The areas of interest

for the economists of this school are very

different, for example the concern for price

and currency, with its chief representative

Milton Friedman, the founder of monetary

trends; the study of efficiency with its

representatives Gary Becker, Jakob

Mincer, Ronald Coase, who are the

creators of the new microeconomics; the

concern for economic development and

international trade, with such

representatives as Harry Johnson and Peter

Bener.

Although adherents of this school are

characterized by disagreements on many

specific issues, there are some ideas that

define and particularize this current of

thought. The Chicago economists are the

advocates of an economy based on private

property, free enterprise and competition.

In the first half of the twentieth century,

they were less concerned than other

economists, with the social and economic

implications of monopoly and oligopoly,

arguing that economic activity must be

conducted according to the principle of

classical liberalism, laissez faire, laissez

passer.