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Erik Jensen
Working Papers

Contract Enforcement and Firm Organization: Evidence from the Indian Textile Industry

Nicholas Bloom, Benn Eifert, Thomas C. Heller, Erik Jensen, Aprajit Mahajan
CDDRL Working Papers , 2009

Using new field-level and international survey evidence we highlight one channel via which weak legal institutions may lower Indian productivity and growth. We provide evidence that top executives in Indian firms are highly centralized and do not delegate functional responsibility and decision making to middle-management. Case-study evidence and large-scale firm surveys suggest executives fear that managers will misappropriate firm assets given the opportunity to do so, in part because the weak legal system is unlikely to successfully punish the culprits and recover the assets.

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Books

Beyond Common Knowledge: Empirical Approaches to the Rule of Law

Erik Jensen, Thomas C. Heller
Stanford University Press , 2005

An intensive global search is on for the "rule of law," the holy grail of good governance, which has led to a dramatic increase in judicial reform activities in developing countries. Very little attention, however, has been paid to the widening gap between theory and practice, or to the ongoing disconnect between stated project goals and actual funded activities. Beyond Common Knowledge examines the standard methods of legal and judicial reform.

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