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Firm size and judicial efficiency: evidence from the neighbour's court

Author

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  • Silvia Giacomelli

    (Bank of Italy)

  • Carlo Menon

    (OECD and Bank of Italy)

Abstract

We investigate the causal relationship between judicial efficiency and firm size across Italian municipalities exploiting spatial discontinuities in court jurisdictions for identification. The estimated coefficients suggest that the reduction of the length of civil proceedings could exert, all other things being equal, a significant and positive effect on the average size of Italian firms. Results are robust to a number of different specifications, based on two different databases.

Suggested Citation

  • Silvia Giacomelli & Carlo Menon, 2013. "Firm size and judicial efficiency: evidence from the neighbour's court," Temi di discussione (Economic working papers) 898, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_898_13
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    References listed on IDEAS

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    Cited by:

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    2. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2020. "Does public sector inefficiency constrain firm productivity? Evidence from Italian provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 1019-1049, August.
    3. Antonio Bassanetti & Matteo Bugamelli & Sandro Momigliano & Roberto Sabbatini & Francesco Zollino, 2014. "The policy response to macroeconomic and fiscal imbalances in Italy in the last fifteen years," PSL Quarterly Review, Economia civile, vol. 67(268), pages 55-103.
    4. Fabio Schiantarelli & Massimiliano Stacchini & Philip E. Strahan, 2017. "Bank quality, judicial efficiency and borrower runs: loan repayment delays in Italy," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Uses of central balance sheet data offices' information, volume 45, Bank for International Settlements.
    5. Fabio Schiantarelli & Massimiliano Stacchini & Philip E. Strahan, 2020. "Bank Quality, Judicial Efficiency, and Loan Repayment Delays in Italy," Journal of Finance, American Finance Association, vol. 75(4), pages 2139-2178, August.
    6. Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.
    7. Giulia Canzian & Antonella Rita Ferrara, 2021. "Judicial Efficiency and Banks Credit Risk Exposure," CESifo Working Paper Series 8930, CESifo.
    8. Giuseppina Gianfreda & Giovanna Vallanti, 2017. "Informality and productivity: do firms escape EPL through shadow employment? Evidence from a regression discontinuity design," Working Papers 2017-01, Universita' di Cassino, Dipartimento di Economia e Giurisprudenza.
    9. Giuseppina Gianfreda & Giovanna Vallanti, 2017. "Informality and productivity: do firms escape EPL through shadow employment? Evidence from a regression discontinuity design," Working Papers 2017-01, Universita' di Cassino, Dipartimento di Economia e Giurisprudenza.
    10. Giuseppina Gianfreda & Giovanna Vallanti, 2015. "Labour Courts delays and the composition of employment: Is labour encouraged or endangered by institutions?," Working Papers LuissLab 15121, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    11. Daniele Bondonio, 2019. "Does the Running Variable Matter? A Second Look at Discontinuity Designs for Evaluating Regional Economic Development and Business Incentive Policies," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-02-ccr, Condorcet Center for political Economy.
    12. Peyrache, Antonio & Zago, Angelo, 2016. "Large courts, small justice!," Omega, Elsevier, vol. 64(C), pages 42-56.
    13. Jarosław Bełdowski & Łukasz Dąbroś & Wiktor Wojciechowski, 2020. "Judges and court performance: a case study of district commercial courts in Poland," European Journal of Law and Economics, Springer, vol. 50(1), pages 171-201, August.
    14. Antonio Accetturo & Andrea Linarello & Andrea Petrella, 2015. "Judiciary efficiency and trade in tasks," ERSA conference papers ersa15p439, European Regional Science Association.

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    More about this item

    Keywords

    judicial efficiency; firm size; spatial discontinuity; Italy;
    All these keywords.

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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