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.
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Citation
Melitz, J and E Dia (2021), ‘DP16565 The impact of common law on the volume of legal services: An international study‘, CEPR Discussion Paper No. 16565. CEPR Press, Paris & London. https://cepr.org/publications/dp16565
