This short essay is a contribution to a symposium held at the Hebrew University of Jerusalem on Professor Calabresi’s The Future of Law and Economics. It focuses on Calabresi’s arguments that tort law facilitates a modified market for merit goods, and that external moral costs should be seriously taken into account by the state and the law in making and implementing difficult social choices. The essay points out two categories of situations where tort law fails to facilitate modified markets for merit goods, and highlights the hurdles in considering external moral costs at least in some cases.
Porat, Ariel, The Future of Law and Economics and the Calabresian External Moral Costs (December 29, 2016). University of Chicago Coase-Sandor Institute for Law and Economics Research Paper No 787; Jerusalem Review of Legal Studies, forthcoming; U of Chicago, Public Law Working Paper No 604.