Abstract

The paper discusses the methodological foundations of law and economics. In particular, it deals with the capacity of economics to properly model and measure laws and institutions. We argue that contemporary economic analysis of law is generally based on a simplistic version of mainstream economics. This process of simplification of both the heterogeneity of methodological approaches and the complexity of reality have potential important consequences, which are here illustrated. We draw implications for how law and economics should, or should not, evolve in the future, in order to guarantee a genuine interdisciplinary approach to the study of legal systems.