Is the common law efficient? Neoclassical economists debate whether our inherited systems of judge-made law maximize wealth whereas Austrian economists typically adopt much different standards. The article reviews neoclassical and Austrian arguments about efficiency in the common law. After...

F.A. Hayek focused on many traditional economic questions, and also made important contributions to law and economics. His framework differed from Kaldor Hicks efficiency and the wealth maximization norm common among neoclassical law and economics scholars. But he talked about how the common law...

The first half of the chapter outlines positive criticisms of neoclassical law and economics from the viewpoint of Austrian economics. Because Austrians believe that calculation of economic costs and benefits requires a system of property rights, we cannot use economics to determine those very...