Firm size and judicial efficiency in Italy: evidence from the neighbour's tribunal

Giacomelli, S. & Menon, C. (2012). Firm size and judicial efficiency in Italy: evidence from the neighbour's tribunal. (SERC Discussion Papers SERCDP0108). Spatial Economics Research Centre, London School of Economics and Political Science.
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We investigate the causal relationship between judicial efficiency and firm size across Italian municipalities, exploiting spatial discontinuities in tribunals' jurisdiction for identification. Results show that halving the length of civil proceedings, average firm size would increase by around 8-12%, everything else equal. Results are robust to a number of different specifications, based on two different databases.

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