In this Article, I offer a macroeconomic perspective on law that reshapes the microeconomic perspective that currently dominates law and economics. I argue that 1. The economy works one way in ordinary economic conditions, in which supply capacity determines output, and a different way in deep...

This Article considers the effects of law within a Keynesian macroeconomic model on the economy. Using the IS/LM model at the heart of “short-run” macroeconomics, I argue that law affects spending (“aggregate demand”) and that the changes in spending induced by law can affect output. I...

This Article identifies and examines two alternative institutional structures for hierarchical institutions — “bounded” vs. “unbounded” institutional structures. In a bounded structure, a principal decides on a bounded numerical allocation and then an agent allocates to subjects while...