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Quarterly Journal of Economics Vol. 118 No. 2 2003

Courts

Simeon Djankov1; R. La Porta; F. Lopez-de-Silanes; A SHLEIFER2

1 World Bank · 2 Harvard University Press

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 nonpayment 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, and is associated with higher expected duration of judicial proceedings, less consistency, less honesty, less fairness in judicial decisions, and more corruption. These results suggest that legal transplantation may have led to an inefficiently high level of procedural formalism, particularly in developing countries.

DOI
10.1162/003355303321675437
Volume
118
Issue
2
Pages
453-517
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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