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Twenty years of ‘Law and Finance’: Time to take law seriously

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journal contribution
posted on 09.11.2018, 13:41 authored by Gerhard SchnyderGerhard Schnyder, Mathias Siems, Ruth V. Aguilera
This ‘state of the art’ essay provides a comprehensive discussion of the Law and Finance School (LFS) literature. We show that the first two decades of the LFS have focused on em-pirically investigating the question ‘does law matter?’ Yet, despite the centrality of law to the LFS, it is based on an incoherent theory of law, which leads to shortcomings in the conceptu-alisation and empirical testing of its hypotheses. We also observe that, rather than addressing this deficiency, the LFS has moved its focus to the contentious concept of ‘legal origin.’ We argue that the LFS needs to take law more seriously by returning to its initial focus on the substance of legal rules and by addressing the theoretical question ‘how does law matter?’ We propose venues for future research to develop a solid theoretical framework that would put the empirical investigation of law’s impact on economic outcomes on a more solid footing.

Funding

This research was supported by the Economic and Social Research Council (ESRC) under project number RES-061-25-0518 (Law & Agency project).

History

School

  • Loughborough University London

Published in

Socio-Economic Review

Volume

19

Issue

1

Pages

377-406

Citation

SCHNYDER, G., SIEMS, M. and AGUILERA, R.V., 2021. Twenty years of ‘Law and Finance’: Time to take law seriously. Socio-Economic Review, 19 (1), pp.377-406.

Publisher

Oxford University Press (OUP)

Version

AM (Accepted Manuscript)

Rights holder

© The Authors

Publisher statement

This is a pre-copyedited, author-produced version of an article accepted for publication in Socio-Economic Review following peer review. The version of record SCHNYDER, G., SIEMS, M. and AGUILERA, R.V., 2021. Twenty years of ‘Law and Finance’: Time to take law seriously. Socio-Economic Review, 19 (1), pp.377-406 is available online at: https://doi.org/10.1093/ser/mwy041.

Acceptance date

19/09/2018

Publication date

2018-11-02

Copyright date

2018

ISSN

1475-1461

eISSN

1475-147X

Language

en

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