Law and economics shows that a key factor in determining the optimal economic loss rule is found in the relationship between pure economic loss and social loss. Economic loss should be compensable in torts only to the extent that it corresponds to a socially relevant loss. In this paper we undertake a comparative evaluation of the economic loss rule to verify whether modern legal systems, although not formally adopting the economic criterion, define the exclusionary rule in light of efficiency considerations. The comparative analysis reveals that the substantive applications of the economic loss rule in European jurisdictions are consistent with the predicates of economic analysis.
Comparative and Foreign Law | Contracts | Injury and Tort Law | Law and Economics
Date of this Version
Francesco Parisi, Vernon Valentine Palmer, and Mauro Bussani, "The Comparative Law and Economics of Pure Economic Loss" (June 2005). George Mason University School of Law Working Papers Series. Working Paper 28.