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ECON 442. Law and Economics

Credits: 3
Department: Economics
Description: Laws' effects on market and non-market behavior emphasizing the theory of externalities. Contract law, property rights, tort law, and public choice theory.
Prerequisites: ECON 205, ECON 206
Semester Offered: Spring
Grading Method: ABCDF

Student Learning Outcomes

1. Provide examples of how laws evolve in a common law system, and recognize when this evolution leads to greater efficiency.
2. Apply the Coase Theorem to legal disputes to identify when and how the initial allocation of a right matters.
3. Use damages as a legal remedy to create incentives for parties to efficiently enter into contracts and behave efficiently once contracts are entered into.
4. Analyze alternative tort liability rules as they pertain to incentives to invest in precaution.
5. Apply the economic way of thinking to explain why people commit crimes, and evaluate the implications of this approach as it pertains to policy toward crime.

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