Review of Law and Economics, Forthcoming
22 Pages Posted: 2 Oct 2006 Last revised: 16 Dec 2008
Date Written: September 30, 2006
This article proposes that constitutional judicial review should be subject to a social welfare analysis to determine when and if such review is efficient in enhancing social welfare. A model is proposed in which property rights protection is a component of social costs. Judicial review is then assumed to, on net, either add to or subtract from those costs, affecting social welfare generally. It will be shown that under realistic conditions, reflected in real instances, judicial review might not enhance economic efficiency or overall social welfare. We show that the efficiency of constitutional judicial review is likely to vary within the larger institutional context.
Keywords: property, judicial review, social welfare, efficiency
JEL Classification: D61, K11, K4
Suggested Citation: Suggested Citation
Cole, Daniel H. and Grossman, Peter Z., Protecting Private Property with Constitutional Judicial Review: A Social Welfare Approach (September 30, 2006). Review of Law and Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=933734 or http://dx.doi.org/10.2139/ssrn.933734