ECON 313 Lecture Notes - Lecture 27: Creative Destruction, Law French, Legal Formalism
15 Feb 2017
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Common law less formalism, less procedures, it is faster: this finding promoted a massive number of articles on the superiority of common law over civil law, problem: When we compare common law vs civil law we are comparing english vs. There are many other differences between french and english colonies other than law like population density, mortality rate, institutions: summary of results for english vs french ex colonies. Less mortality rate of settlers for english. Less population density for english: therefore more inclusive institutions in english vs french colonies, this could explain why gdp english >gdp french, not because common law better than civil law. In a regression of gdp on both legal origin and property rights institutions, only property rights institution matters. Both have advantages and disadvantages: common law: Advantages: less formalism, more power to judges, independence from predatory governments. Disadvantages: jury can be subverted by local elites: civil law:
