Notes for Economics
0:40 Jurist Oliver Wendell Holmes, Jr.
0:58 Jurist Richard Posner
1:14 Economist Ronald Coase
1:42 Economist Gary Becker
2:05 Applications of Economics to Law
Today, we look at the connection between law and economics
• We will consider what a couple of eminent jurors have said about Law and Economics
• Then, we'll discuss the work of eminent economists who pioneered the application of economics to law.
• Finally, we'll review the many ways that economics is used in courts of law.
LAW and ECONOMICS Pt 2
In The Path of Law, Justice Oliver Wendell Holmes, Jr. commented: "For the rational study of the law...the man of the future is the man of statistics and the master of economics...."
In his Essays in Law and Economics, Justice Richard Posner explained: "[T]he legal system contains many parallels to, and overlaps with, the systems that economists have studied successfully."
LAW and ECONOMICS Pt 3
Many economists devote their time and energy applying economic analysis to legal issues. One of the pioneers is Dr. Ronald Coase who defined the nature of a business firm in terms of transaction cost. He explained that the more transactions that can be handled cost effectively within a business, the larger that firm will be.
Nobel Prize recipient Gary Becker modeled human behavior as investments in human capital, distribution of work and leisure time in the family, rational behavior in crime and punishment, and discrimination in markets for labor and goods.
Today, economic analysis is applied to many areas of law including Antitrust issues, industrial regulation, taxation policy, and financial loss damage determination.
LAW and ECONOMICS Pt 4
Furthermore, the application of economics is extended to other areas of legal practice including property law, contracts, torts, criminal law, civil procedure, and constitutional law.
In the economy of the United States, the two major applications of economic theory and analysis are in the intellectual foundation of deregulation, and as the force behind antitrust law in respect to corporations.
LAW and ECONOMICS Summary.
To sum up, we have seen that jurists and economist have understood the connection between law and economics for a long time and that economic analysis has become inseparable from the passage and enforcement of our national laws.
Dr. Sase helps attorneys settle their cases. For cases that do not settle pre-trial, he provides expert opinion based on analysis and reports. John Sase, Ph.D. is an economic expert witness who determines economic damages and gives testimony. As an economist calculating economic damages by analyzing quantitative and qualitative data, he prepares detailed reports with an extensive narrative and sufficient detailed spreadsheets that he uses when he appears as an economic expert witness.
Dr. Sase helps attorneys settle their cases. For cases that do not settle pre-trial, he provides expert opinion based economic damage analysis and reports
Throughout his career, the majority of the cases on which Dr. Sase has worked have involved the determination of economic losses accruing to human beings over time. These damages are due to severe injury or loss of employment as well as to the losses that beset the families of victims who have suffered wrongful death or disablement. In order to perform this work, a forensic economist must remain objective while relying upon data, theories, and literature from the sub-field of Economics known as Human Capital, the stock of competences, knowledge, and personality attributes embodied in one's ability to perform any kind of labor that produces an economic value.
Dr. Sase is a practicing forensic economist/accountant. This means that his work includes measuring and analyzing economic losses; preparing written determinations of these losses; consulting with attorneys and their clients; participating in discovery depositions initiated by opposing counsel; and providing testimony of my findings, conclusions, and opinions in courts of law.
His preparatory background has been a joint Masters in Economics and an MBA with additional electives in Accounting, and a Doctorate in Economics with applied fields in Business, Industrial Organization, and Urban Economics.
To date, Dr. Sase has served on more than 400 cases involving injury, wrongful death, employment law, small businesses/professional practices, and intellectual properties. Including small to moderate size class actions, he has helped more than 2,000 plaintiffs and defendants.
Also, I recommend Tom Ireland's article on the Interface Between Law and Economics and Forensic Economics: http://heinonline.org/HOL/LandingPage?handle=hein.journals/jole7&div=8&id=&page=