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Are Fast Court Proceedings Good or Bad ? : Evidence from Japanese Household Panel Data

Author

Listed:
  • Charles Yuji Horioka

    (Institute of Social and Economic Research, Osaka University, 6-1, Mihogaoka, Ibaraki, Osaka 567-0047, JAPAN)

  • Shizuka Sekita

    (Graduate School of Economics, Nagoya City University, Yamanohata 1, Mizuho, Mizuho, Nagoya, Aichi 467-8501, JAPAN)

Abstract

We analyze the effect of the degree of judicial enforcement on the probability of credit constraints, the amount of loan and the probability of default. Contrary to the traditional view on judicial efficiency of credit market, our estimation results show that better judicial enforcement increases the probability of being rationed and decreases credit granted by banks, consistent with laziness effects. In order to confirm the laziness effect more directly, we analyzed the effect of the degree of judicial enforcement on the probability of default and found that better judicial enforcement increases the probability of default, as expected.

Suggested Citation

  • Charles Yuji Horioka & Shizuka Sekita, 2009. "Are Fast Court Proceedings Good or Bad ? : Evidence from Japanese Household Panel Data," Working Papers 0916, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:0916
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    segregation; Schelling; potential function; coordination; tax; vote;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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