UOT ECO 320 Economic Analysis of Law Final Exam Review (University of Toronto)

UOT ECO 320 Economic Analysis of Law Final Exam Review (University of Toronto) Economic Analysis of Law Test 1 Review Notes: CU Chapter 1: Introduction to Law and Economics Efficiency over Distribution in analyzing private law: • A possible way to pursue redistribution is through private law (property, contract, torts). Courts should make private laws to redistribute income to deserving groups of people (Consumers in favor over investors) • 4 Reasons this is inefficient: 1. Redistribution by private legal rights relies on crude averages 2. the distributive effects of reshuffling private rights are hard to predict 3. Transaction costs of redistribution through private legal rights are typically high 4. Redistribution by private law distorts the economy more than progressive taxation does • Law needs economics to understand its behavioral consequences, and economics needs law o understand the underpinnings of markets CU Chapter 3: A brief introduction to law and legal institutions Common Law: • Judges justify findings of law using precedent and social norms • Lawyers make arguments for their respective sides, judges act as a neutral referee • Juries are used most often in common law • In a jury trial judge decides question of law and jury decides question of fact