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Firm size and judicial efficiency: evidence from the neighbour's court


  • Silvia Giacomelli

    () (Bank of Italy)

  • Carlo Menon

    () (OECD and Bank of Italy)


We investigate the causal relationship between judicial efficiency and firm size across Italian municipalities exploiting spatial discontinuities in court jurisdictions for identification. The estimated coefficients suggest that the reduction of the length of civil proceedings could exert, all other things being equal, a significant and positive effect on the average size of Italian firms. Results are robust to a number of different specifications, based on two different databases.

Suggested Citation

  • Silvia Giacomelli & Carlo Menon, 2013. "Firm size and judicial efficiency: evidence from the neighbour's court," Temi di discussione (Economic working papers) 898, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_898_13

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    References listed on IDEAS

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    Cited by:

    1. Antonio Bassanetti & Matteo Bugamelli & Sandro Momigliano & Roberto Sabbatini & Francesco Zollino, 2014. "The policy response to macroeconomic and fiscal imbalances in Italy in the last fifteen years," PSL Quarterly Review, Economia civile, vol. 67(268), pages 55-103.
    2. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2015. "Does Public Sector Inefficiency Constrain Firm Productivity; Evidence from Italian Provinces," IMF Working Papers 15/168, International Monetary Fund.
    3. Giuseppina Gianfreda & Giovanna Vallanti, 2015. "Labour Courts delays and the composition of employment: Is labour encouraged or endangered by institutions?," Working Papers LuissLab 15121, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    4. Peyrache, Antonio & Zago, Angelo, 2016. "Large courts, small justice!," Omega, Elsevier, vol. 64(C), pages 42-56.
    5. Antonio Accetturo & Andrea Linarello & Andrea Petrella, 2015. "Judiciary efficiency and trade in tasks," ERSA conference papers ersa15p439, European Regional Science Association.

    More about this item


    judicial efficiency; firm size; spatial discontinuity; Italy;

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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