Legal institutionalism: Capitalism and the constitutive role of law
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Publication Date
2017-02-01Journal Title
Journal of Comparative Economics
ISSN
0147-5967
Publisher
Elsevier
Volume
45
Issue
1
Pages
188-200
Language
English
Type
Article
Metadata
Show full item recordCitation
Deakin, S., Gindis, D., Hodgson, G., Huang, K., & Pistor, K. (2017). Legal institutionalism: Capitalism and the constitutive role of law. Journal of Comparative Economics, 45 (1), 188-200. https://doi.org/10.1016/j.jce.2016.04.005
Abstract
Social scientists have paid insufficient attention to the role of law in constituting the economic institutions of capitalism. Part of this neglect emanates for inadequate conceptions of the nature of law itself. Spontaneous conceptions of law and property rights that downplay the role of the state are criticized here, because they typically assume relatively small numbers of agents and underplay the complexity and uncertainty in developed capitalist systems. In developed capitalist economies, law is sustained through interaction between private agents, courts and the legislative apparatus. Law is also a key institution for overcoming contracting uncertainties. It is furthermore a part of the power structure of society, and a major means by which power is exercised. This argument is illustrated by considering institutions such as property and the firm. Complex systems of law have played a crucial role in capitalist development and are also vital for developing economies.
Sponsorship
We thank the Economic and Social Research Council for financial support (ESRC grant ES/J012491/1, ‘Law, Development and Finance in Rising Powers’).
Funder references
ESRC (ES/J012491/1)
Identifiers
External DOI: https://doi.org/10.1016/j.jce.2016.04.005
This record's URL: https://www.repository.cam.ac.uk/handle/1810/254714
Rights
Licence:
http://creativecommons.org/licenses/by/4.0/