Economic Transplants
On Lawmaking for Corporations and Capital Markets

Offers a comprehensive theory on the risks and benefits of incorporating economic theory in capital markets and corporate lawmaking.

Katja Langenbucher (Author)

9781107081802, Cambridge University Press

Hardback, published 19 October 2017

242 pages
23.5 x 15.8 x 1.5 cm, 0.52 kg

Why and in what ways have lawyers been importing economic theories into a legal environment, and how has this shaped scholarly research, judicial and legislative work? Since the financial crisis, corporate or capital markets law has been the focus of attention by academia and media. Formal modelling has been used to describe how capital markets work and, later, has been criticised for its abstract assumptions. Empirical legal studies and regulatory impact assessments offered different ways forward. This book presents a new approach to the risks and benefits of interdisciplinary policy work. The benefits economic theory brings for reliable and tested lawmaking are contrasted with important challenges including the significant differences of research methodology, leading to misunderstandings and problems of efficient implementation of economic theory's findings into the legal world. Katja Langenbucher's innovative research scrutinises the potential of economic theory to European legislators faced with a lack of democratic accountability.

Introduction
Part I. The Promises of Economic Transplants: 1. Economic methodology, its scientific turn and the question 'which economics'
2. Economic imperialism
3. Law and its methodology
4. The promises of economic transplants
Part II. Economic Transplants and Legislation: 5. The promises and the legislator
6. Formal modelling and the problem of predictions
7. Empirical work and the problem of descriptions
8. Promises revisited and embracing complexity
Part III. Economic Transplants and Adjudication: 9. Promises and the judiciary
10. Promises revisited. Conclusion and a different promise.

Subject Areas: Legislation [LNZL], Capital markets & securities law & regulation [LNPD], Banking law [LNPB], Financial law [LNP], Company law [LNCD], Commercial law [LNCB], Company, commercial & competition law [LNC], Corporate finance [KFFH], Economics [KC]