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Courts: The Lex Mundi project

Author

Listed:
  • Djankov, Simeon
  • La Porta, Rafael
  • Lopez-de-Silanes, Florencio
  • Shleifer, Andrei

Abstract

In cooperation with Lex Mundi member law firms in 109 countries, we measure and describe the exact procedures used by litigants and courts to evict a tenant for non-payment of rent and to collect a bounced check. We use these data to construct an index of procedural formalism of dispute resolution for each country. We find that such formalism is systematically greater in civil than in common law countries. Moreover, procedural formalism is associated with higher expected duration of judicial proceedings, more corruption, less consistency, less honesty, less fairness in judicial decisions, and inferior access to justice. These results suggest that legal transplantation may have led to an inefficiently high level of procedural formalism, particularly in developing countries.

Suggested Citation

  • Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2002. "Courts: The Lex Mundi project," CEPR Discussion Papers 3344, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3344
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    References listed on IDEAS

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    More about this item

    Keywords

    Courts; Judicial efficiency; enforcement of contracts;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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