The economic analysis of law is an interdisciplinary field that analyses the implications of the legal framework from an economic point of view, offering a theory of behavior that allows to anticipate the agents¿ response to legal changes, and hence identify the effect on distribution, efficiency, etc., of alternative policies. The course is mainly applied, focusing on a variety of questions related to the efficiency of the legal framework such as how the regulation of property rights (private, public, regulated, etc.) affect economic efficiency; which sanctions for disobeying contracts generate more efficient outcomes; in which situations explicit security standards are more efficient that the application of a system of accident¿s responsibilities, or vice versa; etc. By the end of the semester, the student will be able to: - Understand and anticipate the decisions of market participants in response to changes in the legal framework. - Evaluate the impact of changes in the legal framework on the operation of markets. - Determinate how the imperfections in the functioning of markets affect the conclusions of standard equilibrium analysis. -Use the instruments of economic analysis to deal with interdisciplinary problems. -Interpret the law and evaluate the consequences of legislative changes in a variety of contexts. -Distinguish alternative methods for the analysis of contracts in the presence of civil responsibility and externalities. -Search, communicate and disseminate relevant information over alternative decisions. -Apply multidisciplinary knowledge to the analysis of social problems. -Work cooperatively in order to reach high quality standards in the analysis and presentation of professional work. Skills. The students who take the course will develop: - A critical view of the effects of changes in the legal framework and its economic and social consequences. - An awareness of the difficulties of reconciling alternative desirable objectives in the design of legal systems.

K3: Acquire knowledge of the theories and techniques specific to Economics, employing appropriate terminology and the scientific method. K4: To understand the functioning of the economy as the efficient allocation of scarce resources, including the importance of equity. K5: Know quantitative and qualitative research techniques, and be able to discern which are the most appropriate to apply in the field of economics. K6: Comprehend the economic and social impact of various public policies on different agents and in diverse socioeconomic contexts. K7: Understand the economic variables that regulate the economy and govern the behaviour of agents. K8: Understanding economic institutions K9: Identify the economic, political, and social framework for the activities of various economic, political, or social agents. K10: Understand the fundamental elements of the economic environment from the perspective of different theories and various economic agents. S2: Exploit information by interpreting relevant data, avoiding plagiarism, and adhering to academic and professional conventions within the field of study, with the ability to evaluate the reliability and quality of the information. S3: Apply the knowledge acquired in the degree program to rigorously, accurately, and scientifically identify socioeconomic processes and propose potential solutions. S4: Manage and develop autonomous learning within the field of Economics. S5: Formulate, debate, and defend critical and ethical arguments related to Economics. S6: Identify, collect, interpret and manage relevant information on economic issues, using the appropriate concepts and methodologies of analysis. S7: Design economic and social programs to address the needs of economic agents. S8: Formally representing economic decision-making processes S9: Derive relevant economic information from the data, and be able to process it to answer the questions of interest S10: Prepare advisory reports for economic agents relevant to decision-making. S11: Describe and analyze economic problems within a specific social context. S12: Model and quantitatively interpret specific economic issues C2: Communicate effectively to different audiences knowledge, methodologies, ideas and solutions in the field of study. C3: Independently develop and defend a problem within the disciplinary scope of the degree, proposing well-founded solutions through the application of the knowledge, skills, tools, and strategies acquired or developed throughout the degree program. C4: Solve economic models of interest from both theoretical and numerical perspectives. C5: Use appropriate statistical and econometric tools to address and solve economic problems.

The program is divided in five parts: 1. The economics of litigation and the legal process The Spanish judicial system: introduction and some date. Efficiency of a trial versus a private agreement. 2. The role of the economist in the estimation of damages Introduction. The directive 2014/104. The role of the economist as an appraiser. Measuring the damage. The passing-on of an overprice. 3. Properties Rights and Market Failure Introduction and basic definitions: typology of property rights, criteria for the definition of efficient property rights, ways to defend property, laws over the use of property, patents, intellectual property rights. Market failure and market regulation in the contest of the EAL: externalities, public good, market power. 4. The design of optimal contracts Introduction. Positive and normative analysis of contracts. The role of contract law. Interpretation of contracts. Economists and lawyers interpreting a contract. Trust and sanctions. Incomplete contracts. Efficient contracts. Remedies for imperfect contracts. Optimal contracts with symmetric and asymmetric information. The efficiency/inefficiency of honoring contracts. Efficiency of contracts involving trust. 5. The law applied to accidents and other third-party responsibility cases Introduction and basic concepts: damage, causal link and the imputation of responsibility. The evaluation of civil responsibility. The law as a system of incentives. Rules of responsibility and types of accidents. Compensating for damages. Administrative costs. Other means of risk management. Penalties and rewards. Accident and insurance. The economics of accident damage. Civil responsibility and safety incentives.

The teaching method includes: (1) Theoretical lectures in which the basic knowledge that students must master will be presented. In order to facilitate exposition students class notes and basic references will be made available to students before lecture time. Complementary textbooks and references will be provided so that students interested in particular topics may develop a deeper understanding. Discussion of case studies. The study of these cases will serve as a demonstration of the usefulness of the analysis. (2) A group research project will be assigned. Students will work in groups to search information, and acquire the abilities needed. (3) Discussion and presentation of the conclusions of the groups research projects will help learning the skills for preparing professional reports and communicating conclusions. In addition, facing public discussion will train students in the exchange of critical assessment.