LEGAL ECONOMICS: THE SENSE AND FRAMEWORKS OF FUNCTIONING

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory of law;

Signed print

 22.05.2015

Issues number

 2015 - № 2 (21)

Page

 100-109

Type of articles

 Scientific article

Code UDK

 330.341.2

ISSN print

 2411-5584

Abstract

 Problem setting. The Ukrainian current model of economic development is imperfect on account of corruption, underground nature, and significant social and property stratification. One of the possible theoretical backgrounds of foundation of an effective economic model for Ukraine is the legal economics concept.
Recent research and publications analysis. The «legal economics» concept is relatively new. Researches in this direction has been beginning in the second half of the 20th century and resulted in emergence of an independent scientific direction, which is called the constitutional economics (J. B uchanan). The concepts of «constitutional economics» and «legal economics» are frequently identified. Nevertheless, it is not always justified.
Paper objective. The article objective is to specify the sense of the «legal economics» concept, to determine criteria of a legal economic order, to indicate and to disclose cause and effect relations between social and economic transformations occurring in Ukraine, and to form and to implement legal values.
Paper main body. The criteria of legal economics encompass: equal opportunities in realization of social and economic rights; legal and standardized nature of economic activity; strict definiteness of rights for each business entity. The domestic economic order is characterized by braking legislation norms. Cause of
this event is indefiniteness of rights, non-coordination of economic behavior rules, and distortion of reference points in formation of an economic behavior strategy.
Conclusions of the research. The domestic economic order is sometimes favorable for two economic entities: business entities, which expenses for organizing and participation in re-distributional processes are lower than expenses for organizing and improvement of production; a state, since it is the basis for expropriation of an administrative rent. Way out is possible under conditions, in which absence of effective norms and rules of an economic activity becomes economically unfavorable for a majority of entities.

Keywords

 legal economics, constitutional economics, economic order, social and economic rights, norms and rules of an economic activity.

Reviewer

 Gritsenko O . A ., Doctor of Economic Sciences, Professor, Yaroslav Mudryi National Law University, Kharkiv, Ukraine.

External reviewer

Article in PDF

 № 2 100-109

Bibliography

 none

Code DOI

This post is also available in: Ukrainian

25.02.2015