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1、Chapter1ANINTRODUCTIONTOLAWANDECONOMICS“Fortherationalstudyofthelawtheblack-lettermanmaybethemanofthepresent,butthemanofthefutureisthemanofstatisticsandthemasterofeco-nomics....Welearnthatforeverythingwehavetogiveupsomethingelse,andwearetaughttosettheadvantagewegainagainsttheotheradvantagewelo
2、se,andtoknowwhatwearedoingwhenweelect.”OliverWendellHolmes,ThePathoftheLaw,110HARVARDLAWREVIEW457,469,474(1897)“Tomethemostinterestingaspectofthelawandeconomicsmovementhasbeenitsaspirationtoplacethestudyoflawonascientificbasis,withcoherenttheory,precisehypothesesdeducedfromthetheory,andempiric
3、altestsofthehypotheses.Lawisasocialinstitutionofenormousantiquityandimportance,andIcanseenoreasonwhyitshouldnotbeamenabletoscientificstudy.Eco-nomicsisthemostadvancedofthesocialsciences,andthelegalsystemcon-tainsmanyparallelstoandoverlapswiththesystemsthateconomistshavestudiedsuccessfully.”Jud
4、geRichardA.Posner,inMichaelFaureandRogerVandenBergh,eds.,ESSAYSINLAWANDECONOMICS(1989)UNTILRECENTLY,LAWconfinedtheuseofeconomicstotheareasofantitrustlaw,regulatedindustries,tax,andthedeterminationofmonetarydamages.Lawneededeconomicsintheseareastoanswersuchquestionsas“Whatisthedefendant’sshareo
5、fthemarket?”,“Willpricecontrolsonautomobile1OurcitationstyleisavariantofthelegalcitationstylemostcommonlyusedintheUnitedStates.Hereiswhatthecitationmeans:theauthorofthearticlefromwhichthequotationwastakenisOliverWendellHolmes;thetitleofthearticleis“ThePathoftheLaw”;andthearticlemaybefoundinvol
6、-ume10oftheHarvardLawReview,whichwaspublishedin1897,beginningonpage457.Thequotedmaterialcomesfrompages469and474ofthatarticle.12CHAPTER1AnIntroductiontoLawandEconomicsinsurancereduceitsavailability?”,“Whoreallybearstheburdenofthecapitalgainstax?”,and“Howmuchfutureincomedidthechildrenlosebecause
7、oftheirmother’sdeath?”Thislimitedinteractionchangeddramaticallybeginningintheearly1960swhentheeconomicanalysisoflawexpandedintothemoretraditionalareasofthelaw,suchasproperty,contracts,torts,criminallawandprocedure,andconstitu-2tionallaw
