Abstract

We show that the heavy use of legal services relativeto 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 opens significantly more room for rent-seeking by lawyers than civil law. There by 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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