New Economics Papers
on Law and Economics
Issue of 2010‒12‒23
two papers chosen by
Jeong-Joon Lee, Towson University

  1. Contracts between Legal Persons By Kornhauser, Lewis A.; MacLeod, W. Bentley
  2. The Crime Reducing Effect of Education By Machin Stephen; Marie Olivier; Vujić Sunčica

  1. By: Kornhauser, Lewis A. (New York University); MacLeod, W. Bentley (Columbia University)
    Abstract: Contract law and the economics of contract have, for the most part, developed independently of each other. In this essay, we briefly review the notion of a contract from the perspective of lawyer, and then use this framework to organize the economics literature on contract. The title, Contracts between Legal Persons, limits the review to that part of contract law that is generic to any legal person. A legal person is any individual, firm or government agency with the right to enter into binding agreements. Our goal is to discuss the role of the law in enforcing these agreements under the hypothesis that the legal persons have well defined goals and objectives.
    Keywords: contract law, law and economics, contract breach, contract theory, incomplete contracts
    JEL: K12 J33
    Date: 2010–12
  2. By: Machin Stephen; Marie Olivier; Vujić Sunčica (ROA rm)
    Abstract: In this paper, we study the crime reducing potential of education, presenting causalstatistical estimates based upon a law that changed the compulsory school leaving agein England and Wales. We frame the analysis in a regression-discontinuity setting anduncover significant decreases in property crime from reductions in the proportion ofpeople with no educational qualifications and increases in the age of leaving school thatresulted from the change in the law. The findings show that improving education canyield significant social benefits and can be a key policy tool in the drive to reduce crime.
    Keywords: education, training and the labour market;
    Date: 2010

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