Law and Economics
| Published date | 01 March 1939 |
| DOI | http://doi.org/10.1111/j.1468-2230.1938.tb00412.x |
| Author | H. W. Robinson |
| Date | 01 March 1939 |
THE
MODERN
LAW
REVIEW
~~~
VOl.
II
MARCH,
1939
No.
4
LAW
AND
ECONOMICS
I.
It is difficult to understand why, although the lawyer finds
a
certain knowledge
of
economics indispensable and the practical
economist finds a certain knowledge of the law equally valuable,
the relationship between law and economics has never been given
the consideration it deserves. The economist is usually interested
in the law only when he is tracing the effects of some particular
legislation upon the economy1 or when, in explaining economic
history, he comes across some great legal changes which have had
severe repercussions upon economic events
;
as, for instance, the
laws relating to limited liability companies during the nineteenth
century. It is remarkable that the attention
of
economists has
not been drawn more to this subject when we remember that an
important section
of
economic theory, namely the economics of
taxation,
is
concerned among other things with the specific
problems which arise out
of
the levying of taxes-problems
concerning the effects of legislation upon the economy. The
following paper arises from some reflections of an economist upon
the great importance of the whole legal framework for the
functioning of the economic system.
2.
The science of economics
is
concerned with the problem of
distributing the limited energies and natural resources at the
See Colin
A.
Cooke, "Legal Rule and Economic Function. Competition
and
Restraint
of
Trade,"
Economic
Journal,
1936,
in which the implications
of
laws
relating to contracts in restraint
of
trade are analysed.
Also
E.
J.
Riches,
"
Conflicts
of
Principle in Wage Regulation in New Zealand."
Economica,
1938,
in which the economic problems consequent upon wage regulation are considered.
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