Richard Posner was a giant in the study of economics and law. He died yesterday. He was a towering professor of law and a respected federal appellate judge who focused on the intersection of economic theory and legal decision-making. His book, The Economic Analysis of Law, is in its ninth edition.
It may seem odd to mention Posner's death, but legal decisions strongly affect finance. Specifically, property rights are critical in driving incentives and behavior. There may be a bias toward allowing plaintiffs to feel justice is served, yet legal decisions can have strong second-order effects that are often overlooked when deciding cases. Precedent is critical in our legal system, but legal decisions can have far-reaching effects on economic behavior.
Professor Posner used clear, economically grounded logic to show how laws and court decisions can shape the economy and behavior. We will miss his insightful mind.
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