This document discusses the economic approach to jurisprudence and the relationship between economics and law. It notes that while economics and economic laws are distinct concepts, they are closely associated. Economic analysis of law seeks to understand the effects of legal rules on behavior and determine if these effects are socially desirable. Jurisprudence, the study of law, includes the economic analysis of how economic policies and laws impact micro and macroeconomics. The document argues that properly formulated economic laws can help promote market efficiency and a strong economy.

1. ECONOMIC APPROACH TO JURISPRUDENCE
EVERYTHING ABOUT LAW AND ECONOMICS!!

2. ECONOMICS & LAW
• There is a thin line difference between Economics and Economics Laws.
• Despite being litter different concepts, these two are associated with each other.
• Economics is vast study of human behavior, demand, Supply, factors of productions, policies etc. at macro
and micro level while Economical Law is analysis of law from the economical angle with deep thinking of
economics.
• When we say that Economics is interconnected with Law, we also say that economical laws have a greater
impact on Economics.
• Economic Analysis of Law applies the tools of microeconomics theory to analyze the legal rules &
institutions.

3. • Economic analysis of law seeks to answer two basic questions about legal rules viz.:
- What are the effects of legal rules on the behavior of relevant factor?
- Are these effects of legal rules socially desirable?
• The above two are positive and normative questions. However, generally the approaches used to make
economic analysis of law are:
- The behavior of individuals and firms (assuming they are rational)
- The framework of welfare economics is adopted to assess the social desirability of outcomes.
In this chapter, we are going to analyze Economic Analysis of Law in Jurisprudence

4. ECONOMICS AND JURISPRUDENCE
• Jurisprudence is study of law. It is the study of law philosophers, their philosophy and their approach
towards law.
• Since, Economic Laws largely affects individual and mass behavior, Economic law analysis is one of the
stream of study in Jurisprudence. This analysis is impact of economical policies on micro &
macroeconomics.
• The concept of economic jurisprudence emerged from an inter relationship between application of
economic theory and method of practicing law.
• Economic jurisprudence is a reflection between law and economic. It says that nation’s economy and legal
systems are inter connected.
• In general, law has a welfare approach because it promotes economic efficiency, economic analysis. It is
about how legislation should be exercised to improve market conditions.
• The more strong laws, strongest will be the market.

5. • Law affects every citizen in the society. The economy of the nation can be flourished through proper
formulation, implementation and application of economic laws such as Business law, Market Law etc.

6. LAW AND ECONOMIC EFFICIENCY
• Law and Economics claims that law can be helpful for promoting economic efficiency.
• When the question arises as to how law will help to become efficient economy, the answer would be – by
avoiding certain situations that may lead to market failure.
• One of the best example of market failure can be existence of monopoly so law can be used as a tool to
ensure that monopoly can be controlled and restricted by making effective law and equal opportunity can
be given to the other players also.
• Hence in this way, jurisprudence has tried to deal from its rigidity position to monetary factor that has
been playing a major role in every aspect of human life.