Franz Böhm as a pioneering champion of an economic theory of legislative science

The transaction costs concept is operationalized and expanded in order to demonstrate that Franz Böhm can be considered a forerunner of the economic analysis of law. Within economic systems transaction costs are more than mere friction. They are social catalysts inasmuch as low transaction costs foster desirable processes and high ones inhibit undesirable processes. According to Böhm, economically relevant institutions must be organized in such a way as to ensure that the transaction-cost structure is compatible with the economic functions of social processes. This should be done by cooperation between lawyers and political economists.