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Explaining de facto judicial independence

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  • Hayo, Bernd
  • Voigt, Stefan

Abstract

A high degree of de facto judicial Independence (JI) functions as a crucial precondition of governments to credibly commit to legislative decisions, such as respecting private property rights. Thus, de facto JI should improve the allocative efficiency and may therefore contribute positively to economic growth. But JI as formally written down in legal texts is an imperfect predictor for de facto JI. This paper tries to identify the forces which determine de facto JI. A distinction between factors that can be influenced in the short run and those that are the result of historical development and that are exempt from short-term modification is made. Ascertaining the relative relevance of these two groups of variables promises to be policy-relevant. A rigorous empirical model reduction process is used in order to cope with the potential excess of explanatory variables. The explanatory variables for de facto JI that survive the reduction process are de jure JI, legal confidence of the public, extent of democratization, degree of press freedom, and the religious beliefs of the population.
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Suggested Citation

  • Hayo, Bernd & Voigt, Stefan, 2007. "Explaining de facto judicial independence," International Review of Law and Economics, Elsevier, vol. 27(3), pages 269-290, September.
  • Handle: RePEc:eee:irlaec:v:27:y:2007:i:3:p:269-290
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    2. Arusha Cooray, 2012. "Suffrage, Democracy and Gender Equality in Education," Oxford Development Studies, Taylor & Francis Journals, vol. 40(1), pages 21-47, June.
    3. Romain Espinosa, 2016. "State provision of constitutional goods," Constitutional Political Economy, Springer, vol. 27(1), pages 1-40, March.
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    5. Stefan Voigt, 2011. "Positive constitutional economics II—a survey of recent developments," Public Choice, Springer, vol. 146(1), pages 205-256, January.
    6. Christian Bjørnskov, 2015. "Constitutional property rights protection and economic growth: evidence from the post-communist transition," Constitutional Political Economy, Springer, vol. 26(3), pages 247-280, September.
    7. Jaroslaw Kantorowicz, 2014. "Judges as Fiscal Activists: Can Constitutional Review Shape Public Finance?," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 79-104, June.
    8. Gemma Sala, 2014. "Can Courts Make Federalism Work? A Game Theory Approach to Court-Induced Compliance and Defection in Federal Systems," Economies, MDPI, Open Access Journal, vol. 2(4), pages 1-25, December.
    9. Voigt, Stefan & Gutmann, Jerg & Feld, Lars P., 2015. "Economic growth and judicial independence, a dozen years on: Cross-country evidence using an updated Set of indicators," European Journal of Political Economy, Elsevier, vol. 38(C), pages 197-211.
    10. Hayo, Bernd & Voigt, Stefan, 2018. "The Puzzling Long-Term Relationship Between De Jure and De Facto Judicial Independence," ILE Working Paper Series 18, University of Hamburg, Institute of Law and Economics.
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    12. George Tridimas, 2010. "Constitutional judicial review and political insurance," European Journal of Law and Economics, Springer, vol. 29(1), pages 81-101, February.
    13. Bernd Hayo & Stefan Voigt, 2008. "Inflation, Central Bank Independence, and the Legal System," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(4), pages 751-777, December.
    14. Bernd Hayo & Stefan Voigt, 2018. "The Puzzling Long-Term Relationship Between De Jure and De Facto Judicial Independence," MAGKS Papers on Economics 201833, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Pierre Mandon & Clément Mathonnat, 2014. "Forms of Democracies and Financial Development," Working Papers halshs-01084679, HAL.
    16. Fiorino, Nadia & Gavoille, Nicolas & Padovano, Fabio, 2015. "Rewarding judicial independence: Evidence from the Italian Constitutional Court," International Review of Law and Economics, Elsevier, vol. 43(C), pages 56-66.
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    18. Gutmann, Jerg & Voigt, Stefan, 2017. "Judicial Independence in the EU – A Puzzle," ILE Working Paper Series 4, University of Hamburg, Institute of Law and Economics.
    19. Hayo, Bernd & Voigt, Stefan, 2016. "Explaining constitutional change: The case of judicial independence," International Review of Law and Economics, Elsevier, vol. 48(C), pages 1-13.
    20. Padovano, Fabio & Fiorino, Nadia, 2012. "Strategic delegation and “judicial couples” in the Italian Constitutional Court," International Review of Law and Economics, Elsevier, vol. 32(2), pages 215-223.
    21. Fabio Padovano, 2009. "The time-varying independence of Italian peak judicial institutions," Constitutional Political Economy, Springer, vol. 20(3), pages 230-250, September.
    22. Pierre MANDON & Clément MATHONNAT, 2015. "Forms of Democracies and Financial Development," Working Papers 201523, CERDI.
    23. Pierre Mandon & Clément Mathonnat, 2015. "Forms of Democracies and Financial Development," Working Papers halshs-01196108, HAL.
    24. Papageorgiadis, Nikolaos & Cross, Adam R. & Alexiou, Constantinos, 2013. "The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms," International Business Review, Elsevier, vol. 22(1), pages 278-292.
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    JEL classification:

    • D - Microeconomics
    • D - Microeconomics
    • H - Public Economics
    • K - Law and Economics

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