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Law and economics , or economic analysis of law , is the application of microeconomic theory to the analysis of law . The field emerged in the United States during the early 1960s, primarily from the work of scholars from the Chicago school of economics such as Aaron Director , George Stigler , and Ronald Coase . The field uses economics concepts to explain the effects of laws, assess which legal rules are economically efficient , and predict which legal rules will be promulgated . There are two major branches of law and economics; one based on the application of the methods and theories of neoclassical economics to the positive and normative analysis of the law, and a second branch which focuses on an institutional analysis of law and legal institutions, with a broader focus on economic, political, and social outcomes, and overlapping with analyses of the institutions of politics and governance.

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94-544: Kompetenz-kompetenz , or competence-competence , is a jurisprudential doctrine whereby a legal body, such as a court or arbitral tribunal , may have competence, or jurisdiction , to rule as to the extent of its own competence on an issue before it. The concept arose in the Federal Constitutional Court of Germany . Since then, kompetenz-kompetenz has often been important in international arbitration . The doctrine of kompetenz-kompetenz

188-477: A Free Society. Director's appointment to the faculty of the University of Chicago Law School in 1946 began a half-century of intellectual productivity, although his reluctance about publishing left few writings behind. He taught antitrust courses at the law school with Edward Levi , who eventually would serve as Dean of Chicago's Law School, President of the University of Chicago, and as U.S. Attorney General in

282-538: A Nobel Prize). In 1972, Richard Posner, a law and economics scholar and the major advocate of the positive theory of efficiency, published the first edition of Economic Analysis of Law and founded The Journal of Legal Studies , both are regarded as important events. Gordon Tullock and Friedrich Hayek also wrote intensively in the area and influenced to spread of law and economics. In 1958, Director founded The Journal of Law & Economics , which he co-edited with Nobel laureate Ronald Coase , and which helped to unite

376-577: A dominant social group. Law and economics The historical antecedents of law and economics can be traced back to the classical economists , who are credited with the foundations of modern economic thought. As early as the 18th century, Adam Smith discussed the economic effects of mercantilist legislation; later, David Ricardo opposed the British Corn Laws on the grounds that they hindered agricultural productivity; and Frédéric Bastiat , in his influential book The Law , examined

470-410: A law, especially when the "particular" law of one's own city was adverse to the case being made, not that there actually was such a law. Aristotle, moreover, considered certain candidates for a universally valid, natural law to be wrong. Aristotle's theoretical paternity of the natural law tradition is consequently disputed. Thomas Aquinas is the foremost classical proponent of natural theology , and

564-511: A major law school . Ultimately, Manne established a center at George Mason , which became a center for the education of judges — many never previously exposed to the concepts of law and economics. Manne also attracted the support of the John M. Olin Foundation ; Olin centers (or programs) for Law and Economics now exist at many universities. Modern forerunners of economic thought developed at

658-540: A moral virtue derived as the mean between opposing vices, just like every other virtue he describes. His longest discussion of his theory of justice occurs in Nicomachean Ethics and begins by asking what sort of mean a just act is. He argues that the term "justice" actually refers to two different but related ideas: general justice and particular justice. When a person's actions toward others are completely virtuous in all matters, Aristotle calls them "just" in

752-469: A new theory of jurisprudence that has developed since the 1970s. The theory can generally be traced to American legal realism and is considered "the first movement in legal theory and legal scholarship in the United States to have espoused a committed Left political stance and perspective". It holds that the law is largely contradictory, and can be best analyzed as an expression of the policy goals of

846-481: A norm. Joseph Raz's theory of legal positivism argues against the incorporation of moral values to explain law's validity. In Raz's 1979 book The Authority of Law , he criticised what he called the "weak social thesis" to explain law. He formulates the weak social thesis as "(a) Sometimes the identification of some laws turn on moral arguments, but also with, (b) In all legal systems the identification of some law turns on moral argument." Raz argues that law's authority

940-428: A pivotal book on Hart (second edition published in 2008), which further refined and offered some important criticisms that led MacCormick to develop his own theory (the best example of which is his Institutions of Law , 2007). Other important critiques include those of Ronald Dworkin , John Finnis, and Joseph Raz . In recent years, debates on the nature of law have become increasingly fine-grained. One important debate

1034-503: A relationship desirable or feasible of very much cultivation." Harold Luhnow , the head of the Volker Fund , not only financed F. A. Hayek in the U.S. starting in 1946, but he shortly thereafter financed Aaron Director 's coming to the University of Chicago in order to set up there a new center for scholars in law and economics. The University was headed by Robert Maynard Hutchins , a close collaborator of Luhnow's in setting up

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1128-534: A social institution that relates to the larger political and social context in which it exists. Jurisprudence can be divided into categories both by the type of question scholars seek to answer and by the theories of jurisprudence, or schools of thought, regarding how those questions are best answered: The terms "philosophy of law" and "jurisprudence" are often used interchangeably, though jurisprudence sometimes encompasses forms of reasoning that fit into economics or sociology . Whereas lawyers are interested in what

1222-581: A sovereign, to whom people have a habit of obedience". H. L. A. Hart criticized Austin and Bentham's early legal positivism because the command theory failed to account for individual's compliance with the law. Hans Kelsen is considered one of the preeminent jurists of the 20th century and has been highly influential in Europe and Latin America, although less so in common law countries. His Pure Theory of Law describes law as "binding norms", while at

1316-422: A system of law, or to give it our respect. Thus, the law must have a morality that goes beyond the societal rules under which laws are made. Sophisticated positivist and natural law theories sometimes resemble each other and may have certain points in common. Identifying a particular theorist as a positivist or a natural law theorist sometimes involves matters of emphasis and degree, and the particular influences on

1410-532: A theory of ius gentium (law of nations), and thus is an important figure in the transition to modernity. He extrapolated his ideas of legitimate sovereign power to international affairs, concluding that such affairs ought to be determined by forms respecting of the rights of all and that the common good of the world should take precedence before the good of any single state. This meant that relations between states ought to pass from being justified by force to being justified by law and justice. Some scholars have upset

1504-415: A variety of directions. One important trend has been the application of game theory to legal problems. Other developments have been the incorporation of behavioral economics into economic analysis of law, and the increasing use of statistical and econometrics techniques. Within the legal academy, the term socio-economics has been applied to economic approaches that are self-consciously broader than

1598-503: Is efficiency , in particular, allocative efficiency . A common concept of efficiency used by law and economics scholars is Pareto efficiency . A legal rule is Pareto efficient if it could not be changed so as to make one person better off without making another person worse off. A weaker conception of efficiency is Kaldor–Hicks efficiency . A legal rule is Kaldor–Hicks efficient if it could be made Pareto efficient by some parties compensating others as to offset their loss. Nonetheless,

1692-417: Is the case. So analysing and clarifying the way the world is must be treated as a strictly separate question from normative and evaluative questions of what ought to be done. The most important questions of analytic jurisprudence are: "What are laws?"; "What is the law?"; "What is the relationship between law and power/sociology?"; and "What is the relationship between law and morality?" Legal positivism

1786-411: Is a necessary truth that there are vices that a legal system cannot possibly have (for example, it cannot commit rape or murder). Legal realism is the view that a theory of law should be descriptive and account for the reasons why judges decide cases as they do. Legal realism had some affinities with the sociology of law and sociological jurisprudence. The essential tenet of legal realism is that all law

1880-400: Is an unambiguous increase in allocative efficiency (for example, consolidation of research and development costs through increased mergers and acquisitions resulting from a systematic relaxation of antitrust laws) is, according to critics, fundamentally incorrect, as there is no general reason to conclude that an increase in allocative efficiency is more likely than a decrease. Essentially,

1974-524: Is and what it ought to be. It investigates issues such as the definition of law; legal validity; legal norms and values; as well as the relationship between law and other fields of study, including economics , ethics , history , sociology , and political philosophy . Modern jurisprudence began in the 18th century and was based on the first principles of natural law , civil law , and the law of nations . Contemporary philosophy of law addresses problems internal to law and legal systems and problems of law as

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2068-416: Is based on "first principles": ... this is the first precept of the law, that good is to be done and promoted, and evil is to be avoided. All other precepts of the natural law are based on this ... The desires to live and to procreate are counted by Aquinas among those basic (natural) human values on which all other human values are based. Francisco de Vitoria was perhaps the first to develop

2162-496: Is commonly said that Hobbes's views on human nature were influenced by his times. The English Civil War and the Cromwellian dictatorship had taken place; and, in reacting to that, Hobbes felt that absolute authority vested in a monarch, whose subjects obeyed the law, was the basis of a civilized society. John Austin and Jeremy Bentham were early legal positivists who sought to provide a descriptive account of law that describes

2256-425: Is conceptually distinct from morality. While law might contain morality, the separability thesis states that "it is in no sense a necessary truth that laws reproduce or satisfy certain demands of morality, though in fact they have often done so." Legal positivists disagree about the extent of the separability thesis. Exclusive legal positivists, notably Joseph Raz , go further than the standard thesis and deny that it

2350-626: Is enshrined in the UNCITRAL Model Law on International Commercial Arbitration and Arbitration Rules . Article 16(1) of the Model Law and article 23(1) of the Arbitration Rules both dictate that "[t]he arbitral tribunal shall have the power to rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement." United States arbitration law does not expressly address

2444-485: Is from this cultural movement that Justinian 's Corpus Juris Civilis was born. Modern jurisprudence began in the 18th century and was based on the first principles of natural law , civil law , and the law of nations . Natural law holds that there are rational objective limits to the power of rulers, the foundations of law are accessible through reason, and it is from these laws of nature that human laws gain force. The moral theory of natural law asserts that law

2538-528: Is identifiable purely through social sources, without reference to moral reasoning. This view he calls "the sources thesis". Raz suggests that any categorisation of rules beyond their role as authority is better left to sociology than to jurisprudence. Some philosophers used to contend that positivism was the theory that held that there was "no necessary connection" between law and morality; but influential contemporary positivists—including Joseph Raz, John Gardner , and Leslie Green —reject that view. Raz claims it

2632-446: Is inherent in nature and constitutive of morality, at least in part, and that an objective moral order, external to human legal systems, underlies natural law. On this view, while legislators can enact and even successfully enforce immoral laws, such laws are legally invalid. The view is captured by the maxim: " an unjust law is no law at all ", where 'unjust' means 'contrary to the natural law.' Natural law theory has medieval origins in

2726-424: Is made by humans and thus should account for reasons besides legal rules that led to a legal decision. There are two separate schools of legal realism: American legal realism and Scandinavian legal realism. American legal realism grew out of the writings of Oliver Wendell Holmes . At the start of Holmes's The Common Law , he claims that "[t]he life of the law has not been logic: it has been experience". This view

2820-554: Is possible for morality to be a part of law at all. The discretion thesis states that judges create new law when they are given discretion to adjudicate cases where existing law underdetermines the result. Hobbes was a social contractarian and believed that the law had peoples' tacit consent. He believed that society was formed from a state of nature to protect people from the state of war that would exist otherwise. In Leviathan , Hobbes argues that without an ordered society life would be "solitary, poor, nasty, brutish and short." It

2914-472: Is the dominant theory, although there is a growing number of critics who offer their own interpretations. Historical jurisprudence came to prominence during the debate on the proposed codification of German law . In his book On the Vocation of Our Age for Legislation and Jurisprudence , Friedrich Carl von Savigny argued that Germany did not have a legal language that would support codification because

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3008-420: Is within legal positivism. One school is sometimes called "exclusive legal positivism" and is associated with the view that the legal validity of a norm can never depend on its moral correctness. A second school is labeled "inclusive legal positivism", a major proponent of which is Wil Waluchow, and is associated with the view that moral considerations may , but do not necessarily, determine the legal validity of

3102-530: The Nicomachean Ethics (Book IV of the Eudemian Ethics ). Aquinas's influence was such as to affect a number of early translations of these passages, though more recent translations render them more literally. Aristotle's theory of justice is bound up in his idea of the golden mean . Indeed, his treatment of what he calls "political justice" derives from his discussion of "the just" as

3196-557: The Chicago School , as it became commonly known. The university faculty then included a strong base of libertarian scholars, including Frank Knight , George Stigler , Henry Simons , Ronald Coase and Jacob Viner . Soon, it would also have not just Hayek himself, but Director's brother-in-law and Stigler's friend Milton Friedman , and also Robert Fogel , Robert Lucas , Eugene Fama , Richard Posner , and Gary Becker . Historians Robert van Horn and Philip Mirowski described

3290-552: The Daoists , Confucians , and Legalists all had competing theories of jurisprudence. Jurisprudence in ancient Rome had its origins with the periti —experts in the jus mos maiorum (traditional law), a body of oral laws and customs. Praetors established a working body of laws by judging whether or not singular cases were capable of being prosecuted either by the edicta , the annual pronunciation of prosecutable offences, or in extraordinary situations, additions made to

3384-592: The Ford administration . After retiring from the University of Chicago Law School in 1965, Director relocated to California and took a position at Stanford University's Hoover Institution . He died September 11, 2004, at his home in Los Altos Hills, California, ten days before his 103rd birthday. In the early 1970s, Henry Manne (a former student of Coase) set out to build a center for law and economics at

3478-403: The critical legal studies movement, in particular Duncan Kennedy and Mark Kelman . Jon D. Hanson, of Harvard Law School , argues that our legal, economic, political, and social systems are unduly influenced by an individualistic model of behavior based on preferences , instead of a model that incorporates cognitive biases and social norms . Additional criticism has been directed toward

3572-424: The edicta . A iudex (originally a magistrate , later a private individual appointed to judge a specific case ) would then prescribe a remedy according to the facts of the case. The sentences of the iudex were supposed to be simple interpretations of the traditional customs, but—apart from considering what traditional customs applied in each case—soon developed a more equitable interpretation, coherently adapting

3666-558: The "first-best" neoclassical analysis fails to properly account for various kinds of general-equilibrium feedback relationships that result from intrinsic Pareto imperfections. Another critique comes from the fact that there is no unique optimal result. Warren Samuels in his 2007 book, The Legal-Economic Nexus , argues, "efficiency in the Pareto sense cannot dispositively be applied to the definition and assignment of rights themselves, because efficiency requires an antecedent determination of

3760-529: The American legal realists of the early twentieth century, legal realism sought to describe the way judges decide cases. For legal realists such as Jerome Frank , judges start with the facts before them and then move to legal principles. Before legal realism, theories of jurisprudence turned this method around where judges were thought to begin with legal principles and then look to facts. It has become common today to identify Justice Oliver Wendell Holmes Jr., as

3854-468: The Chicago School include Adam Smith , David Ricardo , and Frédéric Bastiat . Founders include: Other notable individuals include: Economic analysis of law is usually divided into two subfields: positive and normative. 'Positive law and economics' uses economic analysis to predict the effects of various legal rules. So, for example, a positive economic analysis of tort law would predict

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3948-459: The Dean of Harvard Law School , used this term to characterise his legal philosophy . In the United States, many later writers followed Pound's lead or developed distinctive approaches to sociological jurisprudence. In Australia, Julius Stone strongly defended and developed Pound's ideas. In the 1930s, a significant split between the sociological jurists and the American legal realists emerged. In

4042-721: The German Historical school of economics ; this view is represented in the Elgar Companion to Law and Economics (2nd ed. 2005) and—though not exclusively—in the European Journal of Law and Economics . Here, consciously non-neoclassical approaches to economics are used for the analysis of legal (and administrative/governance) problems. Law and economics is closely related to jurimetrics , the application of probability and statistics to legal questions. The economic analysis of law has been influential in

4136-554: The United States as well as elsewhere. Judicial opinions use economic analysis and the theories of law and economics with some regularity, in the US but also, increasingly, in Commonwealth countries and in Europe. The influence of law and economics has also been felt in legal education, with graduate programs in the subject being offered in a number of countries. The influence of law and economics in civil law countries may be gauged from

4230-553: The assumed benefits of law and policy designed to increase allocative efficiency when such assumptions are modeled on "first-best" ( Pareto optimal ) general-equilibrium conditions. Under the theory of the second best , for example, if the fulfillment of a subset of optimal conditions cannot be met under any circumstances, it is incorrect to conclude that the fulfillment of any subset of optimal conditions will necessarily result in an increase in allocative efficiency. Consequently, any expression of public policy whose purported purpose

4324-598: The availability of textbooks of law and economics, in English as well as in other European languages (Schäfer and Ott 2004; Mackaay 2013). Many law schools in North America, Europe, and Asia have faculty members with a graduate degree in economics. In addition, many professional economists now study and write on the relationship between economics and legal doctrines. Anthony Kronman, former dean of Yale Law School, has written that "the intellectual movement that has had

4418-411: The basis of being analogous to the laws of physical science. Natural law is often contrasted to positive law which asserts law as the product of human activity and human volition. Another approach to natural-law jurisprudence generally asserts that human law must be in response to compelling reasons for action. There are two readings of the natural-law jurisprudential stance. Aristotle is often said to be

4512-468: The content of legal concepts using the methods of social science , analytical jurisprudence seeks to provide a general account of the nature of law through the tools of conceptual analysis . The account is general in the sense of targeting universal features of law that hold at all times and places. Analytic, or clarificatory , jurisprudence takes a neutral point of view and uses descriptive language when referring to various aspects of legal systems. This

4606-503: The development of modern economic concepts in "The Rise of the Chicago School of Economics", a chapter of The Road from Mont Pelerin (2009); and historian Bruce Caldwell (a great admirer of von Hayek) filled in more details of the account in his chapter, "The Chicago School, Hayek, and Neoliberalism", in Building Chicago Economics (2011). The field began with Gary Becker's 1968 paper on crime (Becker also received

4700-554: The difference between civil and criminal law. In addition to analytic jurisprudence, legal philosophy is also concerned with normative theories of law. "Normative jurisprudence involves normative, evaluative, and otherwise prescriptive questions about the law." The English word is derived from the Latin, iurisprudentia . Iuris is the genitive form of ius meaning law, and prudentia meaning prudence (also: discretion, foresight, forethought, circumspection). It refers to

4794-538: The diverse kinds of developing transnational law) and the increasingly important interrelations of law and culture, especially in multicultural Western societies. Legal positivism is the view that the content of law is dependent on social facts and that a legal system's existence is not constrained by morality. Within legal positivism, theorists agree that law's content is a product of social facts, but theorists disagree whether law's validity can be explained by incorporating moral values. Legal positivists who argue against

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4888-575: The early Roman Empire to the 3rd century, a relevant body of literature was produced by groups of scholars, including the Proculians and Sabinians . The scientific nature of the studies was unprecedented in ancient times. After the 3rd century, juris prudentia became a more bureaucratic activity, with few notable authors. It was during the Eastern Roman Empire (5th century) that legal studies were once again undertaken in depth, and it

4982-567: The economic concept of utility as the basic unit of analysis. In 1985, in An Economic Theory of the Criminal Law , Posner set out an alternative approach that relied instead on wealth as the basic unit of analysis. As used by lawyers and legal scholars, the phrase "law and economics" refers to the application of microeconomic analysis to legal problems. Because of the overlap between legal systems and political systems, some of

5076-459: The effects of a strict liability rule as opposed to the effects of a negligence rule. Positive law and economics has also at times purported to explain the development of legal rules, for example the common law of torts, in terms of their economic efficiency. Normative law and economics goes one step further and makes policy recommendations based on the economic consequences of various policies. The key concept for normative economic analysis

5170-501: The empirical methods used by social scientists. Prominent Scandinavian legal realists are Alf Ross , Axel Hägerström , and Karl Olivecrona . Scandinavian legal realists also took a naturalist approach to law. Despite its decline in popularity, legal realism continues to influence a wide spectrum of jurisprudential schools today, including critical legal studies , feminist legal theory , critical race theory , sociology of law , and law and economics . Critical legal studies are

5264-722: The exercise of good judgment, common sense, and caution, especially in the conduct of practical matters. The word first appeared in written English in 1628, at a time when the word prudence meant knowledge of, or skill in, a matter. It may have entered English via the French jurisprudence , which appeared earlier. The terms "philosophy of law" and "jurisprudence" are often used interchangeably, though jurisprudence sometimes encompasses forms of reasoning that fit into economics or sociology . Ancient jurisprudence begins with various Dharmaśāstra texts of India. Dharmasutras of Āpastaṃba and Baudhāyana are examples. In Ancient China,

5358-436: The extent allocative efficiency is the goal of the law. Cullerne Bown has criticised Posner's approach on methodological grounds. He concludes that Posner's approach to evaluating policies in the criminal process is methodologically invalid and that "these failings in turn make the entirety of his conclusions on the criminal process unreliable". Law and economics has adapted to some of these criticisms and been developed in

5452-476: The extent to which they are binding. Kelsen contends that the extent to which legal norms are binding, their specifically "legal" character, can be understood without tracing it ultimately to some suprahuman source such as God, personified Nature or—of great importance in his time—a personified State or Nation. In the English-speaking world, the most influential legal positivist of the twentieth century

5546-488: The father of natural law. Like his philosophical forefathers Socrates and Plato, Aristotle posited the existence of natural justice or natural right ( dikaion physikon , δικαίον φυσικόν , Latin ius naturale ). His association with natural law is largely due to how he was interpreted by Thomas Aquinas . This was based on Aquinas' conflation of natural law and natural right, the latter of which Aristotle posits in Book V of

5640-734: The father of the Thomistic school of philosophy, for a long time the primary philosophical approach of the Roman Catholic Church . The work for which he is best known is the Summa Theologiae . One of the thirty-five Doctors of the Church , he is considered by many Catholics to be the Church's greatest theologian. Consequently, many institutions of learning have been named after him. Aquinas distinguished four kinds of law: eternal, natural, divine, and human: Natural law

5734-429: The field has traditionally focused on giving an account of law's nature, some scholars have begun to examine the nature of domains within law, e.g. tort law, contract law, or criminal law. These scholars focus on what makes certain domains of law distinctive and how one domain differs from another. A particularly fecund area of research has been the distinction between tort law and criminal law, which more generally bears on

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5828-512: The fields of law and economics with far-reaching influence. In 1960 and 1961, Ronald Coase and Guido Calabresi independently published two groundbreaking articles, " The Problem of Social Cost " and "Some Thoughts on Risk Distribution and the Law of Torts". This can be seen as the starting point for the modern school of law and economics. In 1962, Aaron Director helped to found the Committee on

5922-553: The governed to obey. Secondary rules are rules that confer authority to create new primary rules or modify existing ones. Secondary rules are divided into rules of adjudication (how to resolve legal disputes), rules of change (how laws are amended), and the rule of recognition (how laws are identified as valid). The validity of a legal system comes from the "rule of recognition", which is a customary practice of officials (especially barristers and judges) who identify certain acts and decisions as sources of law. In 1981, Neil MacCormick wrote

6016-600: The greatest influence on American academic law in the past quarter-century [of the 20th Century]" is law and economics. Despite its influence, the law and economics movement has been criticized from a number of directions. This is especially true of normative law and economics. Because most law and economics scholarship operates within a neoclassical framework, fundamental criticisms of neoclassical economics have been drawn from other, competing frameworks, though there are numerous internal critiques as well. Yet other schools of economic thought have emerged and have been applied to

6110-532: The incorporation of moral values to explain law's validity are labeled exclusive (or hard) legal positivists. Joseph Raz's legal positivism is an example of exclusive legal positivism. Legal positivists who argue that law's validity can be explained by incorporating moral values are labeled inclusive (or soft) legal positivists. The legal positivist theories of H. L. A. Hart and Jules Coleman are examples of inclusive legal positivism. Legal positivism has traditionally been associated with three doctrines:

6204-403: The issues in law and economics are also raised in political economy , constitutional economics and political science . Approaches to the same issues from Marxist and critical theory / Frankfurt School perspectives usually do not identify themselves as "law and economics". For example, research by members of the critical legal studies movement and the sociology of law considers many of

6298-524: The law as it is. Austin explained the descriptive focus for legal positivism by saying, "The existence of law is one thing; its merit and demerit another. Whether it be or be not is one enquiry; whether it be or be not conformable to an assumed standard, is a different enquiry." For Austin and Bentham, a society is governed by a sovereign who has de facto authority. Through the sovereign's authority come laws, which for Austin and Bentham are commands backed by sanctions for non-compliance. Along with Hume, Bentham

6392-446: The law is on a specific issue in a specific jurisdiction, analytical philosophers of law are interested in identifying the features of law shared across cultures, times, and places. Taken together, these foundational features of law offer the kind of universal definition philosophers are after. The general approach allows philosophers to ask questions about, for example, what separates law from morality, politics, or practical reason. While

6486-473: The law to newer social exigencies. The law was then adjusted with evolving institutiones (legal concepts), while remaining in the traditional mode. Praetors were replaced in the 3rd century BC by a laical body of prudentes . Admission to this body was conditional upon proof of competence or experience. Under the Roman Empire , schools of law were created, and practice of the law became more academic. From

6580-519: The main precursor of American Legal Realism (other influences include Roscoe Pound , Karl Llewellyn , and Justice Benjamin Cardozo ). Karl Llewellyn, another founder of the U.S. legal realism movement, similarly believed that the law is little more than putty in the hands of judges who are able to shape the outcome of cases based on their personal values or policy choices. The Scandinavian school of legal realism argued that law can be explained through

6674-500: The morality enacted as law, not the laws themselves. The best evidence of Aristotle's having thought there was a natural law comes from the Rhetoric , where Aristotle notes that, aside from the "particular" laws that each people has set up for itself, there is a "common" law that is according to nature. The context of this remark, however, suggests only that Aristotle thought that it could be rhetorically advantageous to appeal to such

6768-527: The optimal outcome, providing the maximum size 'pie,' and to think about maximizing happiness instead of minimizing pain. We prefer another approach: We do not try to identify games that will lead to the optimal result but to prevent games in which it is in the best interests of the players to come to an unjust result". In 1968, Gary Becker, who would later win the Nobel prize for economics, published Crime and Punishment: An Economic Approach . This work relied on

6862-465: The pedigree thesis, the separability thesis, and the discretion thesis. The pedigree thesis says that the right way to determine whether a directive is law is to look at the directive's source. The thesis claims that it is the fact that the directive was issued by the proper official within a legitimate government, for example, that determines the directive's legal validity—not the directive's moral or practical merits. The separability thesis states that law

6956-427: The philosophy of Thomas Aquinas , especially in his Treatise on law . In late 20th century, John Finnis revived interest in the theory and provided a modern reworking of it. For one, Finnis has argued that the maxim "an unjust law is no law at all" is a poor guide to the classical Thomist position. In its general sense, natural law theory may be compared to both state-of-nature law and general law understood on

7050-420: The possibility of a clear distinction between positive and normative analysis has been questioned by Guido Calabresi who, in his book on "The future of Law and Economics" (2016: 21-22), believes that there is an "actual - and unavoidable - existence of value judgments underlying much economic analysis" Uri Weiss proposed this alternative: "It is common in law and economics to search for the law that will lead to

7144-427: The post-1870 period. Francisco Suárez , regarded as among the greatest scholastics after Aquinas, subdivided the concept of ius gentium . Working with already well-formed categories, he carefully distinguished ius inter gentes from ius intra gentes . Ius inter gentes (which corresponds to modern international law) was something common to the majority of countries, although, being positive law, not natural law, it

7238-406: The principle of kompetenz-kompetenz , but courts have consistently recognised such a power where the parties have granted it to the tribunal. This article related to international law is a stub . You can help Misplaced Pages by expanding it . Jurisprudence Jurisprudence , also known as theory of law or philosophy of law , is the examination in a general perspective of what law

7332-408: The rights (23–4)". Relatedly, legal scholarship also has criticized the movement for allowing its framing of models to dictate its results, for over-emphasizing or under-emphasizing specific incentives and costs, and for building models that do not degrade "gracefully" (and therefore have difficulty modeling reality). In other words, the law and economics movement may not achieve "efficiency", even to

7426-518: The same fundamental issues as does work labeled "law and economics", though from a vastly different perspective. The law and political economy movement also analyzes similar concepts using an entirely different approach. The one wing that represents a non-neoclassical approach to "law and economics" is the Continental (mainly German) tradition that sees the concept starting out of the governance and public policy ( Staatswissenschaften ) approach and

7520-461: The same time refusing to evaluate those norms. That is, "legal science" is to be separated from "legal politics". Central to the Pure Theory of Law is the notion of a ' basic norm ' ( Grundnorm )—a hypothetical norm, presupposed by the jurist, from which all "lower" norms in the hierarchy of a legal system , beginning with constitutional law , are understood to derive their authority or

7614-507: The second half of the twentieth century, sociological jurisprudence as a distinct movement declined as jurisprudence came more strongly under the influence of analytical legal philosophy; but with increasing criticism of dominant orientations of legal philosophy in English-speaking countries in the present century, it has attracted renewed interest. Increasingly, its contemporary focus is on providing theoretical resources for jurists to aid their understanding of new types of regulation (for example,

7708-401: The sense of "general justice"; as such, this idea of justice is more or less coextensive with virtue. "Particular" or "partial justice", by contrast, is the part of "general justice" or the individual virtue that is concerned with treating others equitably. Aristotle moves from this unqualified discussion of justice to a qualified view of political justice, by which he means something close to

7802-444: The standard account of the origins of International law, which emphasises the seminal text De iure belli ac pacis by Hugo Grotius , and argued for Vitoria and, later, Suárez's importance as forerunners and, potentially, founders of the field. Others, such as Koskenniemi, have argued that none of these humanist and scholastic thinkers can be understood to have founded international law in the modern sense, instead placing its origins in

7896-411: The subject of modern jurisprudence. Of political justice, Aristotle argues that it is partly derived from nature and partly a matter of convention. This can be taken as a statement that is similar to the views of modern natural law theorists. But it must also be remembered that Aristotle is describing a view of morality, not a system of law, and therefore his remarks as to nature are about the grounding of

7990-471: The theorist's work. The natural law theorists of the distant past, such as Aquinas and John Locke made no distinction between analytic and normative jurisprudence, while modern natural law theorists, such as John Finnis, who claim to be positivists, still argue that law is moral by nature. In his book Natural Law and Natural Rights (1980, 2011), John Finnis provides a restatement of natural law doctrine. Unlike experimental jurisprudence , which investigates

8084-566: The traditions, customs, and beliefs of the German people did not include a belief in a code. Historicists believe that law originates with society. An effort to systematically inform jurisprudence from sociological insights developed from the beginning of the twentieth century, as sociology began to establish itself as a distinct social science , especially in the United States and in continental Europe . In Germany, Austria and France ,

8178-463: The unintended consequences of legislation. However, to apply economics to analyze the law regulating nonmarket activities is relatively new. A European law & economics movement around 1900 did not have any lasting influence. In a 1917 article analyzing the study of law and economics in American universities, Eugene Allen Gilmore concluded, "the relation between law and economics seems either not to be perceived, or, if perceived, not to be regarded as

8272-400: The work of law and economics in, for example, the work of Edgardo Buscaglia and Robert Cooter in the book "Law and Economics of Development". Critics of the economic analysis of legal questions have argued that normative economic analysis does not capture the importance of human rights and concerns for distributive justice . Some of the heaviest criticisms of law and economics come from

8366-410: The work of the "free law" theorists (e.g. Ernst Fuchs, Hermann Kantorowicz , Eugen Ehrlich and François Gény ) encouraged the use of sociological insights in the development of legal and juristic theory. The most internationally influential advocacy for a "sociological jurisprudence" occurred in the United States, where, throughout the first half of the twentieth century, Roscoe Pound , for many years

8460-515: Was H. L. A. Hart , professor of jurisprudence at Oxford University . Hart argued that the law should be understood as a system of social rules. In The Concept of Law , Hart rejected Kelsen's views that sanctions were essential to law and that a normative social phenomenon, like law, cannot be grounded in non-normative social facts. Hart claimed that law is the union of primary rules and secondary rules. Primary rules require individuals to act or not act in certain ways and create duties for

8554-416: Was a philosophical development that rejected natural law's fusing of what law is and what it ought to be. David Hume argued, in A Treatise of Human Nature , that people invariably slip from describing what the world is to asserting that we therefore ought to follow a particular course of action. But as a matter of pure logic, one cannot conclude that we ought to do something merely because something

8648-490: Was a reaction to legal formalism that was popular the time due to the Christopher Columbus Langdell . Holmes's writings on jurisprudence also laid the foundations for the predictive theory of law. In his article "The Path of the Law", Holmes argues that "the object of [legal] study...is prediction, the prediction of the incidence of the public force through the instrumentality of the courts." For

8742-423: Was an early and staunch supporter of the utilitarian concept, and was an avid prison reformer, advocate for democracy , and firm atheist . Bentham's views about law and jurisprudence were popularized by his student John Austin . Austin was the first chair of law at the new University of London , from 1829. Austin's utilitarian answer to "what is law?" was that law is "commands, backed by threat of sanctions, from

8836-487: Was not necessarily universal. On the other hand, ius intra gentes , or civil law, is specific to each nation. Writing after World War II , Lon L. Fuller defended a secular and procedural form of natural law. He emphasised that the (natural) law must meet certain formal requirements (such as being impartial and publicly knowable). To the extent that an institutional system of social control falls short of these requirements, Fuller argued, we are less inclined to recognise it as

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