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Direct and Indirect Effects of Judicial Institutions: Evidence from American Indian Reservations
2012
Social Science Research Network
This paper studies the effects of judicial institutions on investment and employment using an industry-by-industry approach, combined with the legal context of American Indian reservations. Using variation in legal institutions from a quasi natural experiment, better-understood courts lead to greater employment and more establishments among high-sunk-cost industries while having minimal effects on low-sunk-cost industries. The heterogeneity in effects across industries is consistent with the
doi:10.2139/ssrn.1893693
fatcat:4vliv76vs5formbr46xx6o2ji4