Induction of efficient conduct through tacit approval established in the Economic Freedom Law

Abstract

Contextualization: From the perspective of Law & Economics, it is observed that the State can intervene in the field of economic activity through a rule of induction to stimulate behavior of a certain activity, and the inductive structure established by law must be implemented by the Public Administration, in order to comply with the principle of legality. Furthermore, based on the lessons of behavioral economics, it is understood that a rule of induction aims to eliminate cognitive biases and heuristics without imposing coercion or sanctions, but rather to stimulate behavior in favor of free initiative.

Objective: Analyze whether the tacit approval incorporated in the Economic Freedom Law as an instrument to possibly compose the procedure for releasing activities can be considered a standard for inducing efficient conduct.

Methodology: Deductive method from the perspective of Law & Economics.

Contributions: Tacit approval is part of the structure that induces efficient behavior by removing cognitive biases and heuristics, from the perspective of free initiative. The inducing structure adopted in the Economic Freedom Act aims to speed up administrative procedures and encourage efficient behavior in their execution, including promoting the appropriate allocation of resources to meet deadlines by the Administration involved in the procedure for releasing private activity.