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 is widely attributed to better ability to contract and to adapt to changes in the environment. Yet in close association, common law also opens significantly more room for rent seeking by lawyers than civil law. Thereby the costs could outweigh the benefits. Real GDP per capita, openness, and supply conditions encouraging a high number of lawyers relative to the total population emerge as further factors favoring legal services.
Melitz, Jacques and Dia, Enzo, The Impact of Common Law on the Volume of Legal Services – an International Study (24 August 2022).
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