Law and economic growth

Legal academics study the law extensively, but the great bulk of this research dwells upon the analysis of particular laws or doctrines as judged by standards of justice, individual liberty, or simple positive formalism. While such research is unquestionably valuable, law professors have fallen far

short when it comes to the study of the effect of law and laws on the economic welfare of nations.1 The now-flourishing law and economics movement has stepped into this void, but even much of that movement's research has focused on particularized doctrines and micro-level theoretical analyses of efficiency rather than empirical studies of the structural features that are conducive to growth.2 There remains a relative paucity of academic legal research about the big picture. What particular mix of laws and legal institutions encourage the ultimate overall economic welfare of society?3

Economists have increasingly studied the importance of law to economic growth and made key contributions to our understanding of the issue. Most of these economists, though, are not trained in law and do not test many of the hypotheses that are most important to pragmatic legal and policy determinations.4 Indeed, much of the economic research appears to reflect a fundamental misunderstanding about what is meant by basic terms such as "law" or "rights" or "property rights." The contribution of economists to this study is invaluable, but the field cannot be left to this discipline; law professors must themselves add their understanding to the conversation.5