Tag: law and economics

Regulatory Governance

Increasing Economic Performance Through the Rule of Law in Indonesia: Law and Economics Perspective

Mar 21, 2021 by EAL PAKHE 0 Comments , , , ,

By: Fajar Sugianto

125940525

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https://www.atlantis-press.com/proceedings/icleh-20/125940525

In the globalisation era, laws are forced and challenged to be able to adapt. Not only from economists, but lawyers also are hungry for the primacy of efficiency and start to duplicate the way most economists think, such as, in explicating efficiency and progressiveness of the rule of law. From law and economics perspectives, the rule of law shall provide clarification in order to improve its practices. The general theory is that law is best viewed as a social tool that promotes economic efficiency. With economic approach, efficiency is an ideal model that guides legal practice. In terms of the rule of law, law and economics considers how efficient rules produce the quality of law. This writing has answered three issues: first, how rationality affects people’s behaviour within legal situations. Second, how collective behaviour should have effect on legal rules. Third, understanding and planning strategic actions in the legal context.Since all economic activities regulated by the law, therefore, Indonesian laws need to promote economic efficiency in at least two ways: structure the law in order to remove impediments that encourages private bargaining; and structure the law to minimise the harm caused by failures in private bargaining.

Artikel ini merupakan bagian dari Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)

Regulatory Governance

Butir-Butir Pemikiran Dalam Sejarah Intelektuil Dan Perkembangan Akademik Hukum Dan Ekonomi

Mar 21, 2021 by EAL PAKHE 0 Comments , , , , , ,

By: Fajar Sugianto

280-801-1-PB

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http://jurnal.untag-sby.ac.id/index.php/dih/article/view/280

This writing is intended to convey the basic ideas of what has come to be known as Law and Economics, or also commonly called Economic Analysis of Law. The subject areas of concern are central ones for the origins of law and economics which have been contributed by “the Founding Fathersâ€, namely, David Hume, Adam Ferguson, Adam Smith, Jeremy Bentham, Ronald Coase, Henry Simons, Gordon Tullock, Richard Posner, and Steven Shavell. Because the main object is to present the fusion of horizons between law and economics, this writing had excluded formal economic analysis as well as detailed discussion of most legal area. Like many most accepted theories of jurisprudence, Law and Economics also look to reveal the crucial and definitive aspects of the foundation of law.

Artikel ini terbit dalam Jurnal Ilmu Hukum Vol. 10 No. 19, 2014.

Regulatory Governance

Integrating Law and Economics in Indonesia

Jan 12, 2021 by EAL PAKHE 0 Comments , ,

By: Maria G.S. Soetopo

1493-4493-1-PB-1

Read Full Article here: https://ojs.uph.edu/index.php/LR/article/view/1493/597

The application of “Law and Economics” dates back to 1,500 years ago, and has been applied in many eras. In the 20thCentury, Ronald Coase, pioneered the study of law and economics which was further elaborated by Richard Posner with a new synonimously interchangeable terminology, Economic Analysis of Law (EAL). EAL uses an economic method to analyze how changes in the law affect the allocation and distribution of wealth in society.  This has provided a foundation of a market approach to the legal decision-making process through the use of various techniques including Cost Benefit Analysis (CBA), Cost Effective Analysis (CEA), and Regulatory Impact Assessment (RIA).  As one of the most commonly used techniques, CBA quantifies the objectives of the law with an ultimate goal of maximizing benefits and minimizing costs. It is an analytical tool which searches for variables to indicate economic efficiency. As the legislative drafting process in Indonesia lacks a concrete and measured analytical tool, embedding the law and economics methodology within the regulatory making mechanism can provide more effective laws and regulations. As the world experiences uncertainties during the globalization era, it is imperative for any country to integrate law and economics in the regulatory governance framework to reach a common goal: the maximization of social welfare as enshrined in Article 33 of the 1945 Indonesian Constitution.

Artikel ini terbit dalam Jurnal Law Review Vol. XVIII No. 3, Maret 2019.