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Please use this identifier to cite or link to this item: http://purl.umn.edu/90903

Title: Advocatus, et non latro? Testing the Supplier-Induced-Demand Hypothesis for Italian Courts of Justice
Authors: Buonanno, Paolo
Galizzi, Matteo M.
Authors (Email): Buonanno, Paolo (paolo.buonanno@unibg.it)
Keywords: Lawyers
Litigiosity
Causality
JEL Codes: F22
J15
K42
R10
Issue Date: 2010-06
Series/Report no.: GC
52.2010
Abstract: We explore the relationship between litigation rates and the number of lawyers, in a typical supplier-induced demand (SID) frame. Drawing on an original panel dataset for the 169 Italian courts of justice between 2000 and 2007, we first document that the number of lawyers is positively correlated with different measures of litigation rate. Then, using an instrumental variables strategy we find that a 10 percent increase of lawyers over population is associated with an increase between 1.6 to 6 percent in civil litigation rates. Thus, our empirical analysis supports the SID hypothesis for the Italian lawyers: following an increase in their relative number, lawyers may exploit their informational advantage to induce clients to access to courts even when litigation is unnecessary or ineffective.
URI: http://purl.umn.edu/90903
Institution/Association: Fondazione Eni Enrico Mattei (FEEM)>Global Challenges Papers
Total Pages: 35
Collections:Global Challenges Papers

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