New paper on Legal Institutions, Innovation and Growth

Legal Institutions, Innovation and Growth

ABSTRACT: We analyze the relationship between legal institutions, innovation and growth. We compare a rigid (law set ex-ante) legal system and a flexible one (law set after observing current technology). The flexible system dominates in terms of welfare, amount of innovation and output growth at intermediate stages of technological development - periods when legal change is needed. The rigid system is preferable at early stages of technological development, when (lack of) commitment problems are severe. For mature technologies the two legal systems are equivalent. We find that rigid legal systems may induce excessive (greater than first-best) R&D investment and output growth.

Google search for 'Microjustice' - June 2011

Form time to time, I google certain concepts just to see how much they have taken off. From a term nonexistent in 2005, 'microjustice' today has11.400 entries, the top few which are as follows:
  • www.microjustice.org/
  • www.odemagazine.com/doc/62/microjustice/
  • www.microjusticeinitiative.org/
  • microjusticeworkplace.net/