Reform of legal aid
Why is there supplier-induced demand for legal aid?
Legal aid pays lawyers to act for people who cannot afford them, which raises the question health economists ask about doctors: do the suppliers decide how much the state buys? Gwyn put that question to legal aid in 1996, and found that lawyers did: lawyers short of private work spent more time on publicly funded cases, and costs were doubling in real terms every five years. His remedy is to stop treating legal aid as a market of its own and to contract for the market as a whole — some lawyers paid directly by the state alongside contracts with private firms, as in the Netherlands.
- Quasi-markets for legal aid
- Has there been supplier-induced demand for legal aid?Applies an idea from health economics to legal aid: whether the lawyers’ own advice drives the bill.