The Evolution of a Legal Rule
AbstractThe efficiency of common law rules is central to achieving efficient resource allocation in a market economy. While many theories suggest reasons why judge-made law should tend toward efficient rules, the question whether the common law actually does converge in commercial areas has remained empirically untested. We create a dataset of 465 state-court appellate decisions involving the application of the Economic Loss Rule in construction disputes and track the evolution of law in this area from 1970 to 2005. We find that over this period the law did not converge to any stable resting point and evolved differently in different states. We find that legal evolution is influenced by plaintiffs' claims, the relative economic power of the parties, and nonbinding federal precedent.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13856.
Date of creation: Mar 2008
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
- NEP-LAW-2008-03-25 (Law & Economics)
- NEP-REG-2008-03-25 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nicola Gennaioli & Andrei Shleifer, 2007.
"The Evolution of Common Law,"
Journal of Political Economy,
University of Chicago Press, vol. 115, pages 43-68.
- Matthew C. Stephenson, 2009. "Legal Realism for Economists," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 191-211, Spring.
- Luca Anderlini & Leonardo Felli & Alessandro Riboni, 2008.
"Statute Law or Case Law?,"
Carlo Alberto Notebooks
83, Collegio Carlo Alberto.
- Leonardo Felli & Alessandro Riboni & Luca Anderlini, 2007. "Statute Law or Case Law?," 2007 Meeting Papers 952, Society for Economic Dynamics.
- Luca Anderlini & Leonardo Felli & Alessandro Riboni, 2008. "Statute Law or Case Law?," CESifo Working Paper Series 2358, CESifo Group Munich.
- Anderlini, Luca & Felli, Leonardo & Riboni, Alessandro, 2008. "Statute Law or Case Law?," CEPR Discussion Papers 6912, C.E.P.R. Discussion Papers.
- Anderlini, Luca & Felli, Leonardo & Riboni, A., 2008. "Statute law or case law?," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Luca Anderlini & Leonardo Felli & Alessandro Riboni, 2008. "Statute Law or Case Law?," STICERD - Theoretical Economics Paper Series /2008/528, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Guido Cozzi & Silvia Galli, 2012.
"Sequential R&D and Blocking Patents in the Dynamics of Growth,"
2012_02, Durham University Business School.
- Cozzi, Guido & Galli, Silvia, 2013. "Sequential R&D and Blocking Patents in the Dynamics of Growth," Economics Working Paper Series 1305, University of St. Gallen, School of Economics and Political Science.
- Nicola Gennaioli & Enrico Perotti, 2012.
"Standardized Enforcement: Access to Justice vs. Contractual Innovation,"
652, Barcelona Graduate School of Economics.
- Gennaioli, Nicola & Perotti, Enrico C, 2011. "Standardized Enforcement: Access to Justice vs Contractual Innovation," CEPR Discussion Papers 8478, C.E.P.R. Discussion Papers.
- Nicola Gennaioli & Enrico Perotti, 2009. "Standardized enforcement: Access to justice vs contractual innovation," Economics Working Papers 1329, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2012.
- Cozzi, Guido & Galli, Silvia, 2011.
"Upstream innovation protection: common law evolution and the dynamics of wage inequality,"
31902, University Library of Munich, Germany.
- Guido Cozzi & Silvia Galli, 2009. "Upstream Innovation Protection: Common Law Evolution and the Dynamics of Wage Inequality," Working Papers 2009_20, Business School - Economics, University of Glasgow.
- Guerriero, C., 2009. "Democracy, Judicial Attitudes and Heterogeneity: The Civil Versus Common Law Tradition," Cambridge Working Papers in Economics 0917, Faculty of Economics, University of Cambridge.
- Rustam Romaniuc, 2012. "Judicial Dissent under Externalities and Incomplete Information," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(3), pages 209-224, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.