In Litan’s view, the law-and-economics movement to date has focused on the issue of achieving “static efficiency” — in essence, how best to allocate the existing pie of wealth — while giving insufficient attention to dynamic efficiency, i.e., the need to ensure that the pie keeps growing. For example, a raging issue lawyers are wrestling with today, he notes, is the question of how to reform the current patent and copyright laws to ensure that they spur entrepreneurship and invention, rather than stifle them. This is the type of issue that is right smack in the new initiative’s wheelhouse.Via Growthology, which should have more coverage in coming days.
Thursday, December 11, 2008
Law and Economics 2.0
Fortune has an article about the Kauffman Foundation's new initiative, "Law, Innovation and Growth." It includes lots of questions with Bob Litan, Kauffman's VP of Research and Policy. From the article: