Is Exclusivity of Efficiency-Based Goals in Accident Law Desirable?

Abstract

Author concerns himself with the question whether it is desirable that law only promotes economic goals. Acceptance of Posner’s wealth maximization principle implicitly leads also to acceptance of current distribution of wealth and income. Calabresi doubts that acceptance of the latter is desirable and suggests that it is necessary, by means of social agreement, to define what distribution of wealth and income we consider desirable (just). Author focuses on the field of accident law and depicts the disagreement between Posner and Calabresi on the example of accidents of cars and cyclists. Author concludes that Calabresi’s argumentation is more persuasive.

Keywords: efficiency, wealth effect, Law and Economics, accident law

JEL Classification: K00, K13