A high degree of de facto judicial Independence (JI) functions as a crucial precondition of governments to credibly commit to legislative decisions, such as respecting private property rights. Thus, de facto JI should improve the allocative efficiency and may therefore contribute positively to...

We study the long-term and dynamic relationship between de jure and de facto judicial independence using a large panel dataset covering 50 countries over a period of 50 years. Our analysis shows a negative relationship between these variables, a sharp cont rast to the prevailing theoretical view...