{"id":12161,"date":"2021-07-08T01:30:59","date_gmt":"2021-07-07T23:30:59","guid":{"rendered":"https:\/\/www.sciencespo.fr\/research\/cogito\/home\/?p=12161"},"modified":"2021-07-08T08:43:09","modified_gmt":"2021-07-08T06:43:09","slug":"when-courts-are-the-metronome-of-productivity","status":"publish","type":"post","link":"https:\/\/www.sciencespo.fr\/research\/cogito\/home\/when-courts-are-the-metronome-of-productivity\/?lang=en","title":{"rendered":"When Courts are the Metronome of Productivity"},"content":{"rendered":"

By Johannes Boehm, Department of Economics
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Over the last decades, researchers have pointed out that firms in developing countries are less productive than their counterparts in developed countries. These firms face large distortions in factor markets, which leads to\u00a0 inefficient allocation of factor inputs and organisational forms. These distortions are so big\u00a0 that their removal would likely lead to large increases in industrial productivity and the level of development of these countries. Where do these distortions come from? And how do these distortions affect a firm\u2019s production decisions and its productivity at regional or national levels ?
\nIn a series of articles, Johannes Boehm,<\/a> Assistant Professor at the Department of Economics, studies the role\u00a0 that frictions play\u00a0 in the contracting process (breach of contract, improper contract performance, …) between firms on firm-level outcomes, such as organisation and productivity, and the degree to which they determine macroeconomic outcomes such as per-capita income(1)<\/sup><\/a>This work is informed by the observed structure of production of firms, which researchers measure through data coming either directly or indirectly from firm censuses.<\/span><\/span>