The Divergence of Legal Procedures

Author:

Balas Aron1,La Porta Rafael2,Lopez-de-Silanes Florencio3,Shleifer Andrei4

Affiliation:

1. Oliver Wyman Financial Services, 1 Neal Street, London, WC2H 9QL England.

2. Tuck School, Dartmouth College, 314 Woodbury Hall, Hanover, NH 03755.

3. EDHEC Business School, 393, Promenade des Anglais BP 3116, 06202 Nice Cedex 3, France.

4. Department of Economics, Harvard University, M9 Littauer Center, Cambridge, MA 02138.

Abstract

Simeon Djankov et al. (2003) introduce a measure of the quality of contract enforcement—the formalism of civil procedure—for 109 countries as of 2000. For 40 of these countries, we compute procedural formalism every year since 1950. We find that large differences in procedural formalism between common and civil law countries existed in 1950 and widened by 2000. For this area of law, the findings 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. (JEL K41, O17)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

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