Gavin Howe
Economics and law are intertwined, and an economics degree can be useful for law school and a subsequent career in law. Economic concepts are helpful in the context of law school when discussing business organizations, financial regulations, and contract law. Economics majors tend to achieve relatively high LSAT scores, which are important for admission to competitive law schools. However, some lawyers argue that a degree in economics is not necessary for law school and that choosing a major that interests you is more important. Philosophy, for example, can also help prepare students for the LSAT and law school.
| Characteristics | Values |
|---|---|
| Is economics a prerequisite for studying law? | No, it is not necessary to have studied economics to study law. |
| Are economics concepts useful for law school? | Yes, some economic concepts are helpful in the context of law school when discussing business organizations, financial regulations, and contract law. Economics is also relevant for classes like property, torts, anti-trust law, labor law, securities law, and corporate law. |
| Do economics majors perform better on the LSAT? | Economics majors had a mean LSAT score of 158.8, which was the highest among the 16 largest disciplines for law school applicants in 2015-16. |
| What is the benefit of studying economics before law? | Economics provides a well-rounded education and tools of economic analysis that can help predict the effects of particular legal rules. |
| What should I major in if I want to go to law school? | It is recommended to choose a major that interests you and that you will perform well in. Experience is also very important, so gaining internships or jobs in your last two years of undergrad is crucial. |
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What You'll Learn
- Economics is useful for law school courses like property, contracts, and corporate law
- Economic concepts are helpful when discussing business organisations, financial regulations, and contract law
- Philosophy is a recommended major for aspiring lawyers, helping with the LSAT and law school prep
- Economics provides tools for economic analysis, allowing prediction of legal rule effects
- Economics majors tend to earn higher LSAT scores, which are important for law school admissions
Economics is useful for law school courses like property, contracts, and corporate law
Property law is concerned with providing clear definitions of property rights. Efficiency implies that in a dispute regarding the ownership of a right, the right should go to the party that values it the most. The Coase theorem, a fundamental result in the economic study of law, states that if rights are transferable and transaction costs are not too large, the exact definition of property rights is not important because parties can trade rights, and rights will move to their highest-value uses.
Contract law is consistent with economic efficiency. Law and economics study of contract law has shown that it is generally efficient for parties to be allowed to write their own contracts, and for courts to enforce the agreed-upon terms, including the price. Courts will generally not enforce contracts if performance would be inefficient, but rather will allow payment of damages. For example, if I agree to build something for you in exchange for $50,000, but the costs increase to $150,000, it is inefficient for me to build it. Instead, courts will allow me to compensate you with a monetary payment.
Economic concepts are also helpful in the context of corporate law, particularly when discussing business organizations and financial regulations.
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Economic concepts are helpful when discussing business organisations, financial regulations, and contract law
While it is possible to study law without economics, economic concepts are helpful when discussing business organisations, financial regulations, and contract law.
Business economics is a branch of economics that uses economic tools and concepts and applies them to businesses and corporations. It involves studying financial, organisational, market-related, and environmental issues faced by corporations. This includes concepts like scarcity, production factors, distribution, and consumption. For example, managerial economics focuses on the microeconomic factors influencing the decision-making processes of an organisation. The strategic decisions made by corporations result in either profit or loss. Therefore, managerial economic principles are meant to guide corporate strategy towards the best outcomes.
Additionally, business economics studies external economic factors and their influence on business decisions, such as changes in industry regulation. This is particularly relevant when discussing financial regulations, as understanding the economic climate is crucial for organisations to remain solvent.
Economic concepts are also beneficial when discussing contract law. For instance, supply and demand, investment decisions, and organisational structure are key areas where economics intersects with contract law. Furthermore, economics can provide a strong foundation for understanding the mathematical and logical aspects of the LSAT, which is relevant for aspiring lawyers.
While economics can offer a useful framework for understanding certain legal concepts, it is not a prerequisite for studying law. Ultimately, the choice of whether to study economics alongside law should depend on one's interests and career goals.
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Philosophy is a recommended major for aspiring lawyers, helping with the LSAT and law school prep
While it is not necessary to have studied economics to pursue a law degree, some people believe that it can be helpful in law school and your career as a lawyer. Economic concepts are particularly useful in the context of law school when discussing business organizations, financial regulations, and contract law. However, it is more important to choose a major that interests and challenges you.
Philosophy is a recommended major for aspiring lawyers as it helps with the LSAT and law school preparation. Philosophy is often listed as one of the top options sought at law schools. Philosophy majors tend to achieve superior scores on the LSAT, and the major is always listed in the top 10. A philosophy degree provides an opportunity to develop the skills needed for the LSAT and the practice of law. Philosophy classes teach students to read and analyze texts slowly and deliberately, which is excellent preparation for aspiring lawyers.
The American Bar Association (ABA) suggests that students "pursue an area of study that interests and challenges [them], while taking advantage of opportunities to develop [their] research and writing skills." This description could fit nearly any undergraduate degree, and the ABA lists philosophy as one of the options. Ray Wood, a former prosecuting attorney, recommends taking two or three philosophy classes and a logic class. He advises that writing is the lifeblood of being a lawyer, and students should take composition courses to improve their writing skills.
There are many resources available to help prepare for the LSAT, including test prep books, online and in-person classes, and resources on the LSAC website.
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Economics provides tools for economic analysis, allowing prediction of legal rule effects
Economics and law are intertwined, and economics provides tools for economic analysis, allowing for the prediction of legal rule effects. The economic analysis of law deploys the tools of micro-economic theory to study legal rules and institutions. This is done to identify the effects of legal rules and their social desirability.
The typical economic analysis of law investigates a specific legal rule or institution rather than making general claims about the nature of law. It offers distinctive, often radical, answers to the questions addressed by legal theory. There are three distinct strands of thought within economic analysis of law: policy analysis, political economy, and doctrinal analysis. Policy analysis focuses on the analysis of the effects of legal rules and institutions on outcomes. It requires the policymaker to predict the behaviour the rules will induce.
Economic analysis of law is a comprehensive theory that challenges traditional approaches to law. It emphasizes the effects of legal rules on behaviour, but not the compensation of victims, which some believe is the main purpose of private law. However, economic analysis does consider victim compensation relevant to social welfare if victims are risk-averse. For example, in the context of tort law, damage payments are intended to provide an incentive for potential injurers to take efficient precautions to avoid causing accidents, rather than to compensate injured parties.
Economic theory predicts that criminals, like others, respond to incentives. There is evidence that increases in the probability and severity of punishment in a jurisdiction lead to reduced levels of crime in that area. Similarly, research on procedural rules has shown that increased rights for accused persons can lead to increases in crime.
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Economics majors tend to earn higher LSAT scores, which are important for law school admissions
Economics is one of the most common paths to law school. The LSAT, or Law School Admission Test, is a crucial test required to get into an ABA law school. LSAT scores, along with undergraduate grade point average and the quality of the undergraduate college, are important factors in the admissions decisions of competitive law schools.
Economics majors tend to earn higher LSAT scores compared to other majors. In 2015-16, economics majors had a mean LSAT score of 158.8, the highest score among the 16 largest disciplines (with more than 950 law school applicants). Economics placed second behind math/physics (161.7) out of 29 discipline groupings. This trend has been consistent over the years, with economics majors consistently achieving relatively high mean LSAT scores.
There are several possible reasons for the strong performance of economics majors on the LSAT. Economics involves a combination of mathematical and critical reading skills, which are essential for the LSAT. The LSAT covers sections such as logic games, reading comprehension, and logical reasoning. Economics students often develop proficiency in logic and critical reading, which can give them an advantage on the LSAT.
While economics can provide a good foundation for the LSAT, it is not the only factor that determines law school admissions. Undergraduate grades and the reputation of the undergraduate college are also important considerations. Additionally, students from diverse educational backgrounds, including STEM, humanities, and social sciences, can also achieve strong LSAT scores. Ultimately, choosing a major that aligns with one's interests and gaining relevant experience through internships and jobs can be more crucial than solely focusing on the major for law school admissions.
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Frequently asked questions
Yes, you can study law without having studied economics. However, economics is useful for law school and can help with certain law courses.
Economics is useful for studying law as it provides students with the tools to analyse and predict the effects of legal rules. It also helps when discussing business organisations, financial regulations, and contract law.
Economics majors tend to earn relatively high LSAT scores, which are important for admissions decisions into competitive law schools.
Philosophy is a good alternative subject to economics as it can help prepare you for law school and the LSAT.
