Using two sources of variation -de jure status of third party litigation funding in different Australian states as well as variation in third party litigation funding from the largest litigation funding firm -we find evidence that litigation, court caseloads, and court expenditures increase with third party funding. These increases appear for civil cases but not criminal cases. Court crowding does not precede third party funding and estimated accounting profits are not increasing with court

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... ding. In addition, cases with third party funding are more cited on substantive law and reversed less often than comparable cases without such arrangements.