Jump to ContentJump to Main Navigation
Law and CapitalismWhat Corporate Crises Reveal about Legal Systems and Economic Development around the World$
Users without a subscription are not able to see the full content.

Curtis J. Milhaupt and Katharina Pistor

Print publication date: 2008

Print ISBN-13: 9780226525273

Published to Chicago Scholarship Online: March 2013

DOI: 10.7208/chicago/9780226525297.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 27 May 2022

Rethinking the Relation Between Legal and Economic Development

Rethinking the Relation Between Legal and Economic Development

(p.27) Two Rethinking the Relation Between Legal and Economic Development
Law and Capitalism
University of Chicago Press

Law is not a fixed endowment in the sense of an unchanging foundation for market activity. It is hardly surprising, then, that the sustainable development of capitalist systems should depend in part on the continuous development of new governance structures to support capitalist enterprise. Law, like capitalism, is constantly evolving. Max Weber realized the potential tension between a “rational” legal system (one that generates stable expectations) and the need for legal adaptation within a rapidly developing economy, but he never fully resolved this tension in his work. The ongoing relation between economic development and legal change has always existed and has to some extent been recognized by close observers, but the full implications of an iterative process of legal and market development have escaped sustained analysis. This chapter examines economic and legal development in capitalist systems by viewing the relationship as a highly iterative process of action and strategic reaction. It also discusses the organization of legal systems, the multiple functions of law, substitutes for law, and the political economy and supply and demand for law.

Keywords:   law, capitalism, Max Weber, economic development, legal systems, legal change, market development, political economy, supply, demand

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.