ECONOMIC ANALYSIS OF LAW :THE CONCEPT AND ITS APPLICATION IN THE LAW AND PUBLIC POLICY

Economic Analysis of Law is a field of study which explains the law in terms of non legal factors such as economics and the application of the legal questions in the forms of theories and empirical methods of economics and its concept in the central institutions of legal system. Economic analysis can be used to predict what effects legal rules will have, to argue for legal reform in favour of more economically efficient rule, and to predict how legal rules will change in the future. Economic analysis has also been used as an explanation of existing rules, describing in economic terms why these rules were chosen or have developed rather than alternative rules.