The book applies legal concepts to economic analysis. It explains that modern economies require the existence of a specific legal system to operate. The analysis builds on the prior work of institutional economists such as Douglas North. It brings it forward by integrating what was missing: the legal component. Taking its distance from the economic analysis of law, it provides a legal analysis of economics. It is superior in this regard because real life economic actors must abide by legal rules. Their economic activity is dependent on the existence of rules making it possible, something prese ... More

The book applies legal concepts to economic analysis. It explains that modern economies require the existence of a specific legal system to operate. The analysis builds on the prior work of institutional economists such as Douglas North. It brings it forward by integrating what was missing: the legal component. Taking its distance from the economic analysis of law, it provides a legal analysis of economics. It is superior in this regard because real life economic actors must abide by legal rules. Their economic activity is dependent on the existence of rules making it possible, something present economic analyses neglect completely. Without States and the services they provide (protection services, a legal system, property rights, justice, roads, contract enforcement, and so on), economic activity cannot flourish. The book concentrates on the particular importance of property rights. They always played a key role in economic development. They now play a key role in the operation of a global economy because of the surge of multinationals built on the right of property concentrated via corporations. The role of corporate law in the reconfiguration of the power system from a State System to a World Power System is explained. The book is of interest for all social scientists interested in the operation of our present world economy in an era of globalization. It provides new insight on how to address global issues, in particular global climate change, which is a direct consequence of the spreading of a world economy over a divided State System.