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Law and Economics
Mr. Eric Kramer,
2 credits day; 2 credits evening. This course teaches students how to evaluate the likely effects
of different legal rules and institutions using the tools of economic analysis. The course uses
simple numerical examples to illustrate the core concepts of law and economics. There are no
graphs or equations, and no background in economics is required. Students take turns explaining
how different factors influence the efficiency of legal rules. The course uses in-class exercises
and problem sets to give students practice in analyzing problems. Most students take the final
exam, which is open book and open note, but it is possible to substitute a paper with my advance
permission. Grades are based on class participation, problem sets, and the final exam (or paper).
The first two-thirds of the semester are spent learning the basic tools of economic analysis; the
final third of the semester is spent studying particular topics (currently corporate liability and
medical no-fault, health and safety regulation, and behavioral law and economics).
This course provides an introduction to economic analysis of law. The course covers economic
analysis of torts, contracts, criminal law, cost benefit analysis, health, safety, and environmental
regulation, risk and insurance, behavioral law and economics, and legal procedure. The
economic approach is introduced using simple examples and problem sets, and then extended
using case studies of particular topics. Case studies will be chosen based on student interest.
Possible case study topics include a comparison of the tort system and no-fault liability for
preventing medical errors, the problem of insuring against natural catastrophes, the regulation of
sub-prime mortgage lending, and the politics of risk regulation. No prior knowledge of economic
analysis is required. Students will be evaluated based on class participation, completion of a
handful of problem sets, and either an open book exam or a paper.
Elective Course
On List of Recommended Perspectives Courses
Meets Financial Services Concentration Requirements
Final Exam or Paper Required