Criminal Law and Economic Analysis of Law. Is It Worth the Money?

The chapter begins by clarifying common misconceptions about the economic analysis of law (L&E), emphasizing that it is not solely about economic profitability but about effectiveness in a broader sense. It explores the method of L&E, which applies economic analysis to legal issues, and discusses the rational choice theory that underpins this approach. The text then delves into the effectiveness conditions for criminal regulation, highlighting the role of deterrence and the factors that influence the decision to commit a crime. It also examines the concept of the homo economicus and its benefits, as well as the limitations of this model. The chapter further discusses the role of behavioral economics in challenging the traditional L&E model and its implications for criminal law. It concludes by emphasizing the importance of a more nuanced and complex approach to criminal policy that considers a wider range of variables and the unpredictability of human behavior.