SDG Detail

ECON 303 : Law and Economics

Undergraduate course

Project description

This purpose of this course is to understand how economic outcomes are influenced by a nation's institutions. An important part of these institutions are legal, though they also include social, economic and political ones. We start by discussing the role of property rights in helping achieve long run economic growth. Subsequently, we study the cause of short run business cycles and how the government can mitigate them by using its legal powers to coordinate private actions on good social outcomes. The role of taxes and spending on helping reduce inequality is also examined. The relation between the "American Dream" and the harsh punishment of criminals is covered, as well as the different legal mechanisms for dealing with market failures. Those failures include externalities, like environmental pollution, monopolies and information asymmetries, which can collapse markets. The role of regulation and a discussion of whether its costs may exceed its benefits is an important part of the course. Finally, we take a look at the role of Corporate Social Responsibility as a non-legal way to help solve market failures. A case study of a country which appears to be prospering, namely China, yet which appears to perform weakly when it comes to the rule of law and corruption is also a focus.

Year 2022

Location New Zealand

Organization University of Auckland

Project aims

Project outcome

By the end of this course, students will be able to: Be able to frame up a problem suitable for economic analysis (Capability 1 and 5.1) Use a model to analyse a topic in law and economics (Capability 2 and 4.2) Describe the efficiency attributes of alternative legal rules and organisation (Capability 3, 4.2 and 5.1) Demonstrate how economic models can be applied to real-world problems in law and economics (Capability 1, 4.2 and 6)