An Economic Analysis of Judicial Performance

Abstract

The importance of a functional judiciary for the economy is a time-honoured belief held by economists. Especially in the last decades, this theory has been confirmed by several studies exposing the connection between courts' quality and economic development. However, the comprehension of the factors underlying the evolution of judicial performance is still under development.

This dissertation offers an analyse of judicial performance from an economic perspective. Court performance is understood as a multidimensional concept composed of, at least, three dimensions, namely, independence, efficiency and accessibility. In order to comprehensively cover the three dimensions, the research is focused on the Brazilian judiciary.

Chapters one, two and three are the introductory chapters to the thesis. Chapter one introduces the topic by presenting the motivation, scope and outlook of this research. Chapter two provides the theoretical framework of this dissertation, stressing the relevance of the court system for the proper functioning of the society and debating the main dimensions of judicial performance. Chapter three presents the reader to the structure of the judicial system used in the analyses of the following chapterapter four explores the evolution of judicial independence. It is believed that de jure and de facto judicial independence might develop in different ways. While de jure judicial independence can be quickly achieved by changes in legislation, de facto judicial independence might require time to develop. This chapter confirms this belief and explores the evolution of practical judicial independence. It concludes that measures improving judicial accountability might boos the development of de facto judicial independence.

Chapter five looks for the determinants of judicial efficiency change. Adopting an empirical approach composed of two stages, it explores factors that are correlated with courts' productivity growth over time. The results suggest the nonexistence of a trade-off between judicial quality and efficiency improvement, while judges’ remuneration, legal complexity and the use of technology affect judicial productivity, however, not always in the expected direction.

Chapter six takes judicial accessibility in perspective. Also adopting an empirical approach, it explores the individual and institutional factors that might influence an individual to try to solve a conflict by filing a case in the court system. The results confirm that especially personal characteristics (such as education, gender, age and the presence of a legal professional at home) are correlated with the decision to take legal action.

A final chapter summarises the general findings, highlights the limitations of the dissertation and present some policy recommendations and opportunities for future research.