engleski

Economic Analysis of Judicial System: Case Study of Croatia and Slovenia

Judiciary plays a significant role in the execution of statutory and contractual rights. Analysis of motivation of judicial decision making is therefore of extreme importance for evaluation of proper functioning of judiciary. We wish to show the importance of law and legal institutions for economic development and presents economic reasoning for judicial independence. We hope to show the incentives of performing judicial profession and judicial decision making. Furthermore judiciary’s position as an interest group will be described. Status of Slovenian and Croatian judiciary will be analyzed through the prism of the previously described theoretical foundations. The aims of this paper therefore are twofold: a) to analyze the importance of judicial independence for economic system as a whole. A more independent judiciary means that property rights and contractual obligations of the citizens and potential investors would be better protected and executed and there would be a higher level of investment in the economy and economy b) We wish to consider the individual judge motivation in hers/his work. We propose to explain this by using the following function U (Ts, Tp, I, R, O) where U stands for judges motivation/utility and Ts stands for working hours, Tp stands for free time, I is the income, R is the judges reputation, O are other factors that influence judicial behavior such as popularity and respect that arises from his/her work. We hope to do this by applying economic analysis to the Croatian and Slovenian judicial system and judges from 1991 till present time.

judiciary; economic analysis of law; legal infrastructure; quality of institutions; economic development

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