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SERC/Urban and Spatial Programme Discussion Paper
Firm Size and Judicial Efficiency in Italy: Evidence from the Neighbour's Tribunal
Silvia Giacomelli and Carlo Menon
May 2012
Paper No' SERCDP0108:
Full Paper (pdf)

JEL Classification: K4; L11; O18

Tags: justice efficiency; firm size; spatial discontinuity approach; italy

We investigate the causal relationship between judicial efficiency and firm size across Italian municipalities, exploiting spatial discontinuities in tribunals' jurisdiction for identification. Results show that halving the length of civil proceedings, average firm size would increase by around 8-12%, everything else equal. Results are robust to a number of different specifications, based on two different databases.