Georges Dionne (HEC Montreal – Department of Finance) has posted Book Review of ‘Foundations of Economic Analysis of Law,’ by Steven Shavell on SSRN. Here is the abstract:
The book covers many subjects related to the economic analysis of basic law. It has twenty-nine chapters in seven parts or sections, a comprehensive list of references and two indexes (authors and subjects). Particular attention is devoted to the positive analysis of law, although the normative aspect is also well covered. The book is addressed to two broad audiences: individuals interested in laws with no formal background in economics and economists. The subjects covered are important for any legal system: laws related to property, accidents, contracts, crimes, and their litigation process. I very much enjoyed reading the book. It covers with great competence the relevant topics of the economic analysis of law. The book reflects the strong academic competence of the author. I recommend it to academics and professionals. I also recommend its use for teaching the economics of law in law schools, economics departments, and business schools. The only important drawback is the absence of discussion of empirical studies related to the many issues discussed in the book. But this discussion in itself would probably provide enough material for another book.