Beyond Law and Economics

Abstract

This chapter reflects on various special themes and policy problems discussed in the book using the broader brush of moral philosophy. It argues that law and economics, while themselves multidisciplinary, have a basis in an even broader disciplinary mooring, that of philosophy. Drawing on classic works in law, economics, and philosophy, the chapter then raises important questions about the concept of legitimacy in the context of the kinds of interventions discussed in the previous chapters, such as central bank policies and antitrust regulations. While much of standard law and economics deals with the direct economic consequences of legal interventions, we often overlook the fact that many of these decisions taken by lawyers, policy economists, and technocrats can have sweeping consequences. What gives technocrats the legitimacy to take these actions? What makes these kinds of sweeping decisions, with large human consequences, “morally permissible”? Some of these big topics do not have easy answers and are, by their nature, open ended.