The Comparison of Encounter to externality in Iranian Economy on the Neoclassical Economics and New Institutional Economics Approaches (with Legal Method)

Abstract

Foreign effects are the costs or benefits that are transferred from one economic activity to another outside the form of market transactions. Given the existence of grounds for the formation of foreign influences in our society, this issue can be studied in the Iranian economy. One of the aspects to be studied in this field is the evaluation of the degree of conformity of the existing approaches in dealing with foreign influences in the Iranian economy. Among economic ideas, neoclassicists and neo-institutionalists have played a prominent role in the introduction and expansion of foreign influences. In this article, in a descriptive-analytical method, after drawing a legal approach from the neoclassical economics and neo-institutionalism approach and identifying the rules of civil liability compatible with each of the mentioned approaches, the compatibility of these approaches with the civil liability system governing Iranian law is evaluated. According to the results, first, the system of civil liability in Iranian law, contrary to the neoclassical approach, is not formed solely on the basis of pure responsibility, and second, it has not followed the approach of net maximizing the social interests of the new institutionalism. Both of these consequences are due to the fact that the system of civil liability in Iranian law is not in line with the goal of economic efficiency.

Keywords

• foreign influences
• iranian economy
• neoclassical economics
• new institutionalist economics
• economic efficiency
• civil liability
• law and economics