The economic analysis of public law

Law and economics in the United States and Europe focuses on private law. With the exception of work on antitrust and corporate finance, public law has been largely ignored. Yet economics is central to the understanding of social problems, such as environmental protection and occupational health and safety. Lawyer-economists need to study the relationship between government structure and policy outcomes. Economists must consider goals, such as democratic accountability and participation, which do not fit an efficiency framework.Lawyers and public officials need to recognize the social benefits of efficiency. Such legal-economic analysis can reveal failures in the way public law accommodates the practical reality of today's pressing social problems. It can also suggest solutions. In particular, economics can help with the design of substantive policies and with the analysis of government structures and process.