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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4 May 2012     Paper Number SERCDP0108

Download PDF - Firm Size and Judicial Efficiency in Italy: Evidence from the Neighbour's Tribunal

This SERC/Urban and Spatial Programme Discussion Paper is published under the centre's Urban programme.