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The dynamics of the legal system

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  • Dari-Mattiacci, Giuseppe
  • Deffains, Bruno
  • Lovat, Bruno

Abstract

We present a dynamic model of noncontractual litigation in which the parties’ decision whether to litigate depends on information produced by courts and, vice versa, the courts’ involvement in the lawmaking process depends on the cases proposed by the parties. Thereby, we integrate in one model the two main functions of the judiciary (adjudication and lawmaking) and study their interplay. Our model offers a dynamic, cyclical perspective on the evolution of the legal system over time and sheds new light on the causes for high litigation rates and on judge-made law versus statutes.

Suggested Citation

  • Dari-Mattiacci, Giuseppe & Deffains, Bruno & Lovat, Bruno, 2011. "The dynamics of the legal system," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1), pages 95-107.
    • Handle: RePEc:eee:jeborg:v:79:y:2011:i:1:p:95-107
    DOI: 10.1016/j.jebo.2011.02.001
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    More about this item

    Keywords

    Incompleteness of law; Litigation; Legislation; Adjudication; Judge-made law;
    All these keywords.

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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