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A Cost‐Benefit Analysis Of Enlarging The Japanese Judicial System

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  • Tomio Kinoshita

Abstract

This article presents a cost‐benefit analysis of enlarging the Japanese judicial system, especially the civil section of District Courts (CSDC). Constructing a simple econometric model of CSDC, the effects of increase of judges on the supply of judicial services and the trial time are analyzed. Then a cost and benefit calculation is done. The basic assumption is that the total benefit of the judicial system is the aggregate of monetary value of a suit (MVS). The main conclusions are: (1) The demand elasticity for a civil trial with respect to trial time is –1.3 to about –1.4, and its income elasticity is 0.95. (2) The supply of civil trials is proportional to the number of judges. (3) Ten‐percent increase of judges will shorten the average trial time by 5.2%. (4) The net benefit of CSDC is estimated to be ¥466 billion per year if the annual discount rate is 10%. (5) Judging from the demand and supply relation, if CSDC is doubled, the net increase of total benefit per year will be ¥543 billion. (6) If the benefit of the external effect on lawyers' market is added, the total net benefit will reach almost ¥1 trillion, which is 0.22% of gross domestic product.

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  • Tomio Kinoshita, 2002. "A Cost‐Benefit Analysis Of Enlarging The Japanese Judicial System," Contemporary Economic Policy, Western Economic Association International, vol. 20(2), pages 179-192, April.
    • Handle: RePEc:bla:coecpo:v:20:y:2002:i:2:p:179-192
    DOI: 10.1093/cep/20.2.179
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    References listed on IDEAS

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    1. Milton Friedman & Simon Kuznets, 1945. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1.
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    3. Sen, Amartya, 2000. "The Discipline of Cost-Benefit Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 931-952, June.
    4. Posner, Richard A, 2000. "Cost-Benefit Analysis: Definition, Justification, and Comment on Conference Papers," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 1153-1177, June.
    5. Milton Friedman & Simon Kuznets, 1954. "The Data on Income from Independent Professional Practice," NBER Chapters, in: Income from Independent Professional Practice, pages 46-62, National Bureau of Economic Research, Inc.
    6. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
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    Cited by:

    1. Yamamura, Eiji, 2013. "Trial experience, satisfaction and incentive to bring another lawsuit: Does aspiration level influence winners and losers?," Japan and the World Economy, Elsevier, vol. 28(C), pages 125-131.
    2. Yamamura, Eiji, 2009. "What Discourages Participation in the Lay Judge System (Saiban’in Seido) of Japan? Interaction between the Secrecy Requirement and Social Networks," MPRA Paper 17197, University Library of Munich, Germany.
    3. Eiji Yamamura, 2011. "Brand and Performance in a New Environment: Analysis of the Law School Market in Japan," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(2), pages 155-164, June.
    4. Yamamura, Eiji, 2010. "The effect of learning varies according to locality: Micro data analysis of the lawyer market in Japan," Japan and the World Economy, Elsevier, vol. 22(3), pages 193-197, August.

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