Working Paper: NBER ID: w13809
Authors: Aron Balas; Rafael La Porta; Florencio Lopez-de-Silanes; Andrei Shleifer
Abstract: Djankov et al. (2003a) propose and measure for 109 countries in the year 2000 an index of formalism of legal procedure for two simple disputes: eviction of a non-paying tenant and collection of a bounced check. For a sub-sample of 40 countries, we compute this index every year starting in 1950, which allows us to study the evolution of legal rules. We find that between 1950 and 2000, the formalism of legal procedure did not converge, and possibly diverged, between common law and French civil law countries. At least in this specific area of law, the results are inconsistent with the hypothesis that national legal systems are converging, and support the view that legal origins exert long lasting influence on legal rules.
Keywords: legal origins; procedural formalism; common law; civil law; legal systems
JEL Codes: K4; K41; P51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Legal Origins (K19) | Procedural Formalism (K40) |
| Common Law vs Civil Law (K15) | Procedural Formalism (K40) |
| Procedural Formalism (2000) (K41) | Divergence in Legal Procedures (K49) |
| Procedural Formalism (K40) | Economic Outcomes (P47) |
| Legal Origins (K19) | Economic Outcomes (P47) |
| Procedural Formalism (1950) (K40) | Historical Differences in Legal Procedures (K40) |