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  3. Journal of Economic Literature
  4. December 2022
  5. Legal Markets

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Legal Markets

  • Gillian K. Hadfield
Journal of Economic Literature
vol. 60, no. 4, December 2022
(pp. 1264–1315)
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Abstract

The existence of an effective legal system is assumed throughout economic analysis, and yet there has been little study of the economics of legal markets themselves. Research to date has focused narrowly on the economics of markets for lawyers. In this review, I distinguish legal markets from the market for lawyers and show how excessive regulation of our legal markets—by lawyers themselves—distorts economic activity and growth. It does so primarily by inhibiting investment in the legal and regulatory technologies needed to respond to the transformation of the economy wrought by globalization, digitization, aspirations for inclusion, and the coming of artificial intelligence.

Citation

Hadfield, Gillian K. 2022. "Legal Markets." Journal of Economic Literature, 60 (4): 1264–1315. DOI: 10.1257/jel.20201330

Additional Materials

JEL Classification

  • J44 Professional Labor Markets; Occupational Licensing
  • K00 Law and Economics: General
  • K40 Legal Procedure, the Legal System, and Illegal Behavior: General
  • L84 Personal, Professional, and Business Services