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The Economics of Civil Justice: New Cross-country Data and Empirics

Author

Listed:
  • Giuliana Palumbo

    (Bank of Italy)

  • Giulia Giupponi

    (Bocconi University)

  • Luca Nunziata

    (University of Padua)

  • Juan S. Mora Sanguinetti

    (Banco de España)

Abstract

Combining existing information with a newly collected dataset, the paper develops indicators of the performance and the institutional characteristics of OECD judicial systems. It provides cross-country comparisons of measures of trial length, accessibility to justice services and predictability of decisions. It then investigates how trial length is related to some of the underlying characteristics of the systems. There is a large cross-country variation in trial length and in appeal rates (a proxy of the predictability of decisions), which are only partially explained by restrictions to appeal. Cross-country differences in trial length are related to the shares of the justice budget devoted to computerisation, the systematic production of statistics on case-flow, the active management of the progress of cases by courts, the presence of specialised commercial courts and systems of court governance assigning greater managerial responsibilities to the chief judge. Indicators of good public governance are associated with lower litigation, which in turn has a significant impact on trial length. Free negotiation of lawyers’ fees, as opposed to regulated fees, appears to be associated with lower litigation. L'économie de la justice civile : nouvelles données comparatives et analyse empirique En combinant l’information existante avec une nouvelle base de données, le document produit des indicateurs qui mesurent la performance et les caractéristiques institutionnelles des systèmes judiciaires de l’OCDE. Ceci permet une comparaison internationale de la performance des systèmes . Le document examine ensuite la façon dont la durée des procédures est liée aux caractéristiques sous-jacentes des systèmes concernés. Il existe une grande variation entre les pays en ce qui concerne la durée des procès, qui semble être liée à la part du budget de la justice consacrée à l’informatisation, à la production systématique de statistiques et à la gestion active des dossiers par les tribunaux, à la présence de tribunaux de commerce spécialisés et aux responsabilités de gestion assignées au juge principal. Une gouvernance publique de bonne qualité, réduit le recours aux procédures judiciaires, ce qui à son tour a un impact significatif sur la durée des procédures. La libre négociation des honoraires des avocats est associée à un moindre taux de procédures judiciaires.

Suggested Citation

  • Giuliana Palumbo & Giulia Giupponi & Luca Nunziata & Juan S. Mora Sanguinetti, 2013. "The Economics of Civil Justice: New Cross-country Data and Empirics," OECD Economics Department Working Papers 1060, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1060-en
    DOI: 10.1787/5k41w04ds6kf-en
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    Citations

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    Cited by:

    1. Johannes Boehm, 2014. "The Impact of Contract Enforcement Costs on Outsourcing and Aggregate Productivity," 2014 Meeting Papers 340, Society for Economic Dynamics.
    2. Miguel García-Posada & Juan Mora-Sanguinetti, 2015. "Entrepreneurship and enforcement institutions: disaggregated evidence for Spain," European Journal of Law and Economics, Springer, vol. 40(1), pages 49-74, August.
    3. Jimeno Juan F. & Martínez-Matute Marta & Mora-Sanguinetti Juan S., 2020. "Employment protection legislation, labor courts, and effective firing costs," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-26, January.
    4. Christian Daude, 2016. "Structural reforms to boost inclusive growth in Greece," OECD Economics Department Working Papers 1298, OECD Publishing.
    5. Mora-Sanguinetti, Juan S. & Garoupa, Nuno, 2015. "Do lawyers induce litigation? Evidence from Spain, 2001–2010," International Review of Law and Economics, Elsevier, vol. 44(C), pages 29-41.
    6. Doménech-Pascual, Gabriel & Martínez-Matute, Marta & Mora-Sanguinetti, Juan S., 2021. "Do fee-shifting rules affect plaintiffs’ win rates? A theoretical and empirical analysis," International Review of Law and Economics, Elsevier, vol. 65(C).
    7. Juan S. Mora-Sanguinetti & Marta Martínez-Matute, 2019. "An economic analysis of court fees: evidence from the Spanish civil jurisdiction," European Journal of Law and Economics, Springer, vol. 47(3), pages 321-359, June.
    8. Melcarne, Alessandro & Ramello, Giovanni B. & Spruk, Rok, 2021. "Is justice delayed justice denied? An empirical approach," International Review of Law and Economics, Elsevier, vol. 65(C).
    9. Jean-Marc Fournier, 2015. "The negative effect of regulatory divergence on foreign direct investment," OECD Economics Department Working Papers 1268, OECD Publishing.
    10. Di Virgilio, Francesca & Capalbo, Francesco & Doronzo, Emanuele, 2024. "A bibliometric analysis of digitalization in public sector and human resources management studies. What happened to the trial court organization?," Economics & Statistics Discussion Papers esdp24097, University of Molise, Department of Economics.
    11. Juan S. Mora-Sanguinetti & Marta Martínez-Matute & Miguel García-Posada, 2017. "Credit, crisis and contract enforcement: evidence from the Spanish loan market," European Journal of Law and Economics, Springer, vol. 44(2), pages 361-383, October.
    12. Di Vita, Giuseppe & Di Vita, Fabio & Cafiso, Gianluca, 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, Cambridge University Press, vol. 15(1), pages 121-141, February.
    13. Rizos, Anastasios & Kapopoulos, Panayotis, 2021. "Judicial Efficiency and Economic Growth: Evidence based on EU data," MPRA Paper 107861, University Library of Munich, Germany.
    14. Juan S. Mora-Sanguinetti & Nuno Garoupa, 2015. "Litigation in Spain 2001-2010: Exploring the market for legar services," Working Papers 1505, Banco de España.
    15. Miguel García-Posada & Juan Mora-Sanguinetti, 2015. "Does (average) size matter? Court enforcement, business demography and firm growth," Small Business Economics, Springer, vol. 44(3), pages 639-669, March.
    16. Boeri, Tito & Garibaldi, Pietro & Moen, Espen R., 2017. "Inside severance pay," Journal of Public Economics, Elsevier, vol. 145(C), pages 211-225.
    17. Antonio Peyrache & Angelo Zago, 2020. "The (in)efficiency of Justice. An equilibrium analysis of supply policies," CEPA Working Papers Series WP042020, School of Economics, University of Queensland, Australia.
    18. Zuzana Smidova, 2015. "Policy areas for increasing productivity in Latvia," OECD Economics Department Working Papers 1255, OECD Publishing.
    19. repec:spo:wpmain:info:hdl:2441/1uut5itepl9q5osfl3tj7qatje is not listed on IDEAS
    20. Alessandro Melcarne & Giovanni B. Ramello, 2020. "Bankruptcy delay and firms’ dynamics," Small Business Economics, Springer, vol. 54(2), pages 405-419, February.
    21. Dejuan-Bitria, Daniel & Mora-Sanguinetti, Juan S., 2021. "Which legal procedure affects business investment most, and which companies are most sensitive? Evidence from microdata," Economic Modelling, Elsevier, vol. 94(C), pages 201-220.
    22. repec:hal:spmain:info:hdl:2441/1uut5itepl9q5osfl3tj7qatje is not listed on IDEAS
    23. Comi, Simona & Grasseni, Mara & Resmini, Laura, 2021. "Can judicial efficiency improve territorial attractiveness to FDI? The Italian experience," European Journal of Political Economy, Elsevier, vol. 70(C).
    24. Pezone, Vincenzo, 2023. "The real effects of judicial enforcement," Other publications TiSEM 08176032-a171-4f23-8dac-e, Tilburg University, School of Economics and Management.
    25. Vincenzo Pezone, 2023. "The Real Effects of Judicial Enforcement," Review of Finance, European Finance Association, vol. 27(3), pages 889-933.

    More about this item

    Keywords

    accessibility; accessibilité; appeal rates; caractéristiques des systèmes judiciaires; durée de procès; fonctionnement de la justice; institutional characteristics of judicial systems; judicial performance; taux d'appel; taux de litige;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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