Are Fast Court Proceedings Good or Bad ?: Evidence from Japanese Household Panel Data

Charles Yuji Horioka () and Shizuka Sekita ()
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Shizuka Sekita: Graduate School of Economics, Nagoya City University, Yamanohata 1, Mizuho, Mizuho, Nagoya, Aichi 467-8501, JAPAN

No 916, Working Papers from Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure

Abstract: We analyze the effect of the degree of judicial enforcement on the probability of credit constraints, the amount of loan and the probability of default. Contrary to the traditional view on judicial efficiency of credit market, our estimation results show that better judicial enforcement increases the probability of being rationed and decreases credit granted by banks, consistent with laziness effects. In order to confirm the laziness effect more directly, we analyzed the effect of the degree of judicial enforcement on the probability of default and found that better judicial enforcement increases the probability of default, as expected.

Keywords: segregation; Schelling; potential function; coordination; tax; vote (search for similar items in EconPapers)
JEL-codes: C63 C72 C73 D62 J15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-rmg
Date: 2009
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Working Paper: Are Fast Court Proceedings Good or Bad?: Evidence from Japanese Household Panel Data (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:gat:wpaper:0916

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