Hostname: page-component-8448b6f56d-gtxcr Total loading time: 0 Render date: 2024-04-23T16:46:53.470Z Has data issue: false hasContentIssue false
  • English
  • Français

The economic importance of judicial institutions, their performance and the proper way to measure them

Published online by Cambridge University Press:  11 October 2018

ALAIN MARCIANO ,
ALESSANDRO MELCARNE  and
GIOVANNI B. RAMELLO
ALAIN MARCIANO
Affiliation:
MRE, Université de Montpellier, Montpellier, France
ALESSANDRO MELCARNE
Affiliation:
EconomiX, CNRS & Université Paris Nanterre, Nanterre, France
GIOVANNI B. RAMELLO*
Affiliation:
DiGSPES, Università del Piemonte Orientale, Alessandria, Italy
*
*Corresponding author: Email: giovanni.ramello@uniupo.it
Get access Rights & Permissions [Opens in a new window]

Abstract

In the present paper we contribute to the previous literature on de facto enforcing mechanisms, by focusing on the role of judicial institutions and their performance and measurement. We propose both theoretical and empirical evidence supporting the necessity of a clear distinction between two measures of judicial performance, efficiency and efficacy, which have often been confused in previous literature. Not only might economic actors not be affected to the same extent by these two indicators, but we show that these measures do not even correlate significantly with each other. We also bring evidence against the alleged trade-off between the quality of justice and judicial performance in its quantitative dimension, showing that this relationship is much more complicated than is claimed by some legal scholars.

Type
Symposium on the Empirics of Judicial Institutions
Information
Journal of Institutional Economics , Volume 15 , Issue 1 , February 2019 , pp. 81 - 98
Copyright
Copyright © Millennium Economics Ltd 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, D., Johnson, S. and Robinson, J. A. (2001), ‘The Colonial Origins of Comparative Development: An Empirical Investigation’, American Economic Review, 91: 1369–1401.Google Scholar
Acemoglu, D. and Robinson, J. A. (2012), Why Nations Fail: The Origins of Power, Prosperity, and Poverty, New York: Crown Publishers.Google Scholar
Autor, D. H. (2003), ‘Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing’, Journal of Labor Economics, 21: 1–42.Google Scholar
Bubb, R. (2013), ‘The Evolution of Property Rights: State Law or Informal Norms?’ Journal of Law and Economics, 56: 555–594.Google Scholar
Buchanan, J., Chai, D. H. and Deakin, S. (2014), ‘Empirical Analysis of Legal Institutions and Institutional change: multiple-methods Approaches and their Application to Corporate Governance Research’, Journal of Institutional Economics, 10 (01): 1–20.Google Scholar
Buonanno, P. and Galizzi, M. M. (2014), ‘Advocatus, et non Latro? Testing the Excess of Litigation in the Italian Courts of Justice’, Review of Law & Economics, 10: 285–322.Google Scholar
CEPEJ (2014), ‘European Judicial Systems: Efficiency and Quality of Justice’, Technical report. Strasbourg: European Commission for the Efficiency of Justice.Google Scholar
Chemin, M. (2009), ‘The Impact of the Judiciary on Entrepreneurship: Evaluation of Pakistan's “Access to Justice Programme”’, Journal of Public Economics, 93: 114–125.Google Scholar
Chemin, M. (2012), ‘Does Court Speed Shape Economic Activity? Evidence from a Court Reform in India’, Journal of Law, Economics, and Organization, 28: 460–485.Google Scholar
Dakolias, M. (1999), Court Performance around the World: A Comparative Perspective, The World Bank, Washington DC.Google Scholar
Di Vita, G., Di Vita, F. and Cafiso, G. (2019), ‘The Economic Impact of Legislation and Litigation on Growth: A Historical Analysis of Italy from its Unification to World War II’, Journal of Institutional Economics, (10.1017/S1744137417000583).Google Scholar
Djankov, S., La Porta, R., Lopez-de Silanes, F. and Shleifer, A. (2003), ‘Courts’, Quarterly Journal of Economics, 118: 453–517.Google Scholar
Forsund, F., Kittelsen, S., Melcarne, A. and Ramello, G. B. (2018), ‘When Productivity Meets Justice: Evidence from Italian Courts’. Mimeo.Google Scholar
Glaeser, E., La Porta, R., Lopez-de Silanes, F. and Shleifer, A. (2004), ‘Do Institutions Cause Growth?’ Journal of Economic Growth, 9: 271–303.Google Scholar
Greif, A., Milgrom, P. and Weingast, B. R. (1994), ‘Coordination, Commitment, and Enforcement: The Case of the Merchant Guild’, Journal of Political Economy, 102: 745–776.Google Scholar
Hodgson, G. M. (2006), ‘What Are Institutions?’ Journal of Economic Issues, 40: 1–25.Google Scholar
Hodgson, G. M. (2018), ‘Property Rights: Limits and Enhancements’, in Marciano, A. and Ramello, G. B. (eds), Encylopedia of Law and Economics, New York: Springer Nature.Google Scholar
Ippoliti, R., Melcarne, A. and Ramello, G. B. (2015), ‘Judicial Efficiency and Entrepreneurs’ Expectations on the Reliability of European Legal Systems’, European Journal of Law and Economics, 40: 75–94.Google Scholar
Jappelli, T., Pagano, M. and Bianco, M. (2005), ‘Courts and Banks: Effects of Judicial Enforcement on Credit Markets’, Journal of Money, Credit & Banking, 37: 223–245.Google Scholar
Melcarne, A. (2017), ‘Careerism and Judicial Behavior’, European Journal of Law and Economics, 44: 241–264.Google Scholar
Melcarne, A. and Ramello, G. B. (2015), ‘Judicial Independence, Judges’ Incentives and Efficiency’, Review of Law & Economics, 11: 149–169.Google Scholar
Melcarne, A. and Ramello, G. B. (2018), ‘Bankruptcy Delay and Firms’ Dynamics’, Small Business Economics (https://doi.org/10.1007/s11187-018-0041-5).Google Scholar
Mora-Sanguinetti, J. S., Martínez-Matute, M. and Garcìa-Posada, M. (2017), ‘Credit, Crisis and Contract Enforcement: Evidence from the Spanish Loan Market’, European Journal of Law and Economics, 44: 361–383.Google Scholar
North, D. C. (1990), Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press.Google Scholar
Rodrik, D., Subramanian, A. and Trebbi, F. (2004), ‘Institutions Rule: The Primacy Over in Economic and Integration Geography Development’, Journal of Economic Growth, 9: 131–165.Google Scholar
Safavian, M. and Sharma, S. (2007), ‘When Do Creditor Rights Work?’ Journal of Comparative Economics, 35: 484–508.Google Scholar
Scully, G. (1988), ‘The Institutional Framework and Economic Development’, Journal of Political Economy, 96: 652–662.Google Scholar
Smith, A. (1763), Lectures on Justice, Police, Revenue and Arms, Clarendon Press (1896).Google Scholar
Smith, A. (1776), An Inquiry into the Nature and Causes of the Wealth of Nations, London: Methuen.Google Scholar
Smith, A. (1795), Essays on Philosophical Subjects by the Late Adam Smith, to Which Is Prefixed, an Account of the Life and Writings of the Author by Dugald Stewart, London: for T. Cadell Jun. and W. Davies, et al.Google Scholar
Staats, J. L., Bowler, S. and Hiskey, J. T. (2005), ‘Measuring Judicial Performance in Latin America’, Latin American Politics and Society, 47: 77–106.Google Scholar
Visaria, S. (2009), ‘Legal Reform and Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India’, American Economic Journal: Applied Economics, 1: 59–81.Google Scholar
Voigt, S. (2012), ‘How to Measure the Rule of Law’, Kyklos, 65: 262–284.Google Scholar
Voigt, S. (2013), ‘How (Not) to Measure Institutions’, Journal of Institutional Economics, 9: 1–26.Google Scholar
Voigt, S. (2016), ‘Determinants of Judicial Efficiency: A Survey’, European Journal of Law and Economics, 42: 183–208.Google Scholar
Williamson, C. R. (2009), ‘Informal Institutions Rule: Institutional Arrangements and Economic Performance’, Public Choice, 139: 371–387.Google Scholar
Williamson, C. R. and Kerekes, C. B. (2011), ‘Securing Private Property: Formal versus Informal Institutions’, Journal of Law and Economics, 54: 537–572.Google Scholar
Williamson, O. (1985), The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, New York: The Free Press.Google Scholar
World Bank (2016), Doing Business Report: Measuring Regulatory Efficiency and Quality. Technical Report, Washington DC: World Bank Group.Google Scholar
Zuckerman, A. (1999), Civil Justice in Crisis: Comparative Perspectives of Civil Procedure, Oxford: Oxford University Press.Google Scholar