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

Listed author(s):
  • 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.

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File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2013/2013-0898/en_tema_898.pdf
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Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 898.

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Date of creation: Jan 2013
Handle: RePEc:bdi:wptemi:td_898_13
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