Abstract:
This comparative law and economics essay aims to introduce the economic notion of "path dependency" as a tool for comparing legal systems, and further seeks to take a step forward in our understanding of legal change. Methodologically speaking, the study of comparative law has been dominated by the historical approach, while in the economic analysis of law, historical observations largly have so far been ignored. Nevertheless, the "neo-institutional" approach to economics has extensively focused on economic history to understand institutional evolution. This essay will try to show some possible fruitful cooperation between these two approaches in understanding legal change, and to obtain more precise observations in comparing the law. Contact the Law and Economics Program at Boalt Hall, UC Berkeley, Berkeley, CA 94720 for a copy of this paper.