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SERIEs

, Volume 3, Issue 3, pp 339–365 | Cite as

Is judicial inefficacy increasing the weight of the house property market in Spain? Evidence at the local level

  • Juan S. Mora-SanguinettiEmail author
Open Access
Original Article

Abstract

The weight of the housing tenancy market in Spain is very low. It is frequently argued that an ineffective judicial system, implying a cumbersome procedure to evict a non-paying tenant or simply requiring a long period to execute a decision, may be an important determinant of the tenancy market’s weakness, as it constrains the effective supply by reducing the profitability of landlords. This research studies this effect econometrically using a panel data approach and exploring differences in judicial efficacy among the Spanish provinces. After controlling for several other factors, this study concludes that the degree of inefficacy of the judicial system has a positive impact on the property share among provinces in Spain.

Keywords

Judicial efficacy Property market Tenancy market Contract enforcement 

JEL Classification

K40 R21 

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Copyright information

© The Author(s) 2011

This article is published under license to BioMed Central Ltd. Open Access This article is distributed under the terms of the Creative Commons Attribution License which permits any use, distribution and reproduction in any medium, provided the original author(s) and source are credited.

Open AccessThis article is distributed under the terms of the Creative Commons Attribution 2.0 International License (https://creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Authors and Affiliations

  1. 1.Economic Analysis and Forecasting DepartmentBanco de España-EurosystemMadridSpain
  2. 2.OECDParisFrance

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