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The Administrative Cost of Appeal Systems and Error Correction

Author

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  • Ruiz Diaz Gonzalo

    (Department of Economics, Pontifical Catholic University of Peru, Lima, Peru)

Abstract

The performance of appeal systems has been frequently been conditioned by the availability of human and financial resources. Scholars have suggested measures for reducing the financial and administrative burden of appeal tribunals; however, such proposals must be assessed considering their impact on the primigenial objectives pursued by these systems, particularly their capacity to reduce the harm produced by judicial errors. This study assesses diverse options for reducing caseload burdens in an administrative appeal system, including abandoning the prohibition of the Reformatio in Peius (RIP) principle, elevating fees for appealing and introducing subsidies and penalties to defendants. The results show that increasing appeal fees may allow a similar effect on the reduction of caseload burden as abandoning no RIP but at a lower cost in terms of noncorrected errors. The results are robust to different assumptions regarding the informational signals sent by defendants to tribunals during the administrative process.

Suggested Citation

  • Ruiz Diaz Gonzalo, 2023. "The Administrative Cost of Appeal Systems and Error Correction," Asian Journal of Law and Economics, De Gruyter, vol. 14(1), pages 77-95, April.
    • Handle: RePEc:bpj:ajlecn:v:14:y:2023:i:1:p:77-95:n:6
    DOI: 10.1515/ajle-2023-0017
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    More about this item

    Keywords

    appeals; reformatio in peius; judicial errors; social costs;
    All these keywords.

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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