Ludivine Roussey and
Raphael Soubeyran ()
International Review of Law and Economics, 2018, vol. 55, issue C, 21-32
We develop a double-sided moral hazard model in which the production of justice depends on two tasks (jurisdictional and administrative). The jurisdictional task can be provided only by a judge (the agent) while the administrative task can be provided either by the government (the principal) and/or by the judge. However, the judge performs the administrative task at a higher unit cost. First, we show that the first-best situation is such that the judge exerts no effort to provide the administrative task. Second, we show that two forms of (second-best) optimal contract can emerge when neither the government's effort nor the judge's effort is contractible: either the incentives are shared between the government and the judge and the judge exerts no effort to provide the administrative task, or the judge faces high-powered incentives which induce her to exert effort to provide both tasks. Our model proposes a rationale for judges work overload observed in many countries.
Keywords: Double-sided moral hazard; Task misallocation; Judicial organization; Production of judicial services (search for similar items in EconPapers)
JEL-codes: D20 D86 K40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:55:y:2018:i:c:p:21-32
Access Statistics for this article
International Review of Law and Economics is currently edited by C. Ott, A. W. Katz and H-B. SchÃ¤fer
More articles in International Review of Law and Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().