Working Paper: CEPR ID: DP16565
Authors: Jacques Melitz; Enzo Dia
Abstract: We show that the heavy use of legal services relative to output in the US is not a peculiarity of the country but applies to common law countries in general. It stems largely from better ability to contract and easier access to justice. Yet in close association, common law also offers lawyers potentially more room for rent-¬seeking than civil law. Thereby the costs could outweigh the benefits. Both real GDP per capita and openness emerge as further factors making room for lawyers.
Keywords: common law; civil law; legal services; rent-seeking; openness
JEL Codes: K15; K00
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| common law (K15) | legal service expenditures (K41) |
| GDP per capita (O49) | legal service expenditures (K41) |
| trade openness (F43) | legal service expenditures (K41) |
| common law (K15) | demand for legal services (L84) |
| GDP per capita + trade openness (F43) | legal service expenditures (K41) |
| common law (K15) | rent-seeking behavior (D72) |