Recent finance scholarship finds that countries with legal systems based on the common law provide better investor protections and have more developed financial markets than civil law countries. These findings echo Hayek's claims of the superiority of English to French legal institutions. In...

It is common in the legal academy to describe trends in judicial decisions leading to new common law rules as the result of conscious judicial effort. Evolutionary models of litigation, in contrast, treat common law as resulting from pressure applied by litigants. One apparent difficulty in the...

We evaluate Richard Posner's famous hypothesis that common law converges to efficient legal rules using a model of precedent setting by appellate judges. Following legal realists, we assume that judicial decisions are subject to personal biases, and that changing precedent is costly to judges....

Economists have documented pervasive correlations between legal origins, modern regulation, and economic outcomes around the world. Where legal origin is exogenous, however, it is almost perfectly correlated with another set of potentially relevant background variables: the colonial policies of...

The efficiency of the common law hypothesis has generated a large bulk of literature in the last decades. The main argument is that there is an implicit economic logic to the common law; the doctrines in common law provide a coherent and consistent system of incentives which induce efficient...

This article examines the issue of benefits overpayments in UK social security law. Current estimates put the level of overpayments due to error (as opposed to fraud) at about £2 billion per annum. Concern about his issue has led to the publication of a DWP statement of strategy and an attempt...

In most areas, economists look to competition to align incentives, but not so with courts. Many believe that competition enables plaintiff forum shopping, but Adam Smith praised rivalry among courts. This article describes the courts when the common law developed. In many areas of law, courts...

Extralegal norms governing the use of common property resources break down when old users groups are confronted by new uses and users groups. In adjudicating such conflicts between old and new users, common law judges have rarely opted for the simple Coasean solution of simply awarding the right...

Our paper is a methodological critique of the recent legal origins literature. We start by showing that the legal origins cannot be easily based on the efficiency hypothesis of the common law. By debunking the relationship between the efficiency hypothesis of the common law and the legal origins...