Jappelli, Tullio; Pagano, Marco; Bianco, Magda - In: Journal of Money, Credit and Banking 37 (2005) 2, pp. 223-44
The cost of enforcing contracts is a key determinant of market performance. We document this point with reference to the credit market in a model of opportunistic debtors and inefficient courts. According to the model, improvements in judicial efficiency should reduce credit constraints and...