Legal Economic Analysis Related to the State Concept Of The Welfare Law
Lisma Lumentut, Yeheschiel B.Marewa

Faculty of Law, Universitas Kristen Indonesia Paulus

Abstract

This article aims to find out how the economic analysis of law and its relationship in the concept of a welfare state law as adopted by the Indonesian State. ^This type of research is normative juridical based on primary and secondary and tertiary materials, which are analyzed qualitatively by describing the results of the data used descriptively. The research result is an economic analysis of the law emphasizing efficiency in the allocation and utilization of resources, so that it can be efficient and effective. If this theory is connected with the concept of a welfare state which is based on the teachings of utilitarianism, efficiency can be understood as an effort to create welfare or prosperity for as many citizens as possible, but at the expense of the smallest individual interests. The
depiction of an economic point of view of law in Posner^s perspective gave birth to a behaviorial law or a behaviorial economy. The two habits were then synthesized until they merged into the behaviorial of law and
economy. Transaction fees are then adopted into legal arrangements. Transaction costs, which were originally economic principles, were later made into legal rules. This behaviorial principle seems to be clearly applied in a plural society, which cannot escape from transaction costs. As a result, the rule of law is a necessity that is able to provide legal certainty and maintain a sense of social justice in society. These rules can be in the form of contracts or regulations regarding the limits of ownership and property rights. Of course, all of this is directed towards achieving social welfare.

Keywords: Legal Economic, State Concept, Welfare Law

Topic: Law and Land and Environment