Judicial Ideology and Business Dynamics

Using staggered changes in U.S. circuit court ideology, we examine the effect of judicial ideology on U.S. business dynamics. We find evidence that shifts toward more liberal courts, which are commonly viewed as less pro-business, are followed by immediate increases in business turnover that persist for decades. Changes toward more liberal courts are not related to preexisting levels or trends in economic conditions but are followed by immediate increases in business entry and job creation. In the intermediate term business exits and job destruction increase. This results in more younger firms, especially in industries that benefit most from conservative courts.

© This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/


  • Judge_Paper-1.pdf

    size: 954 KB | mime_type: application/pdf | date: 2022-04-04 | sha256: 1bc382c


Work Title Judicial Ideology and Business Dynamics
Open Access
  1. Mehmet Canayaz
  2. Matthew Gustafson
License CC BY-NC-ND 4.0 (Attribution-NonCommercial-NoDerivatives)
Work Type Article
  1. Elsevier BV
Publication Date 2020
Publisher Identifier (DOI)
  1. 10.2139/ssrn.3555366
  1. SSRN Electronic Journal
Deposited April 04, 2022




This resource is currently not in any collection.

Work History

Version 1

  • Created
  • Added Judge_Paper-1.pdf
  • Added Creator Mehmet Canayaz
  • Added Creator Matthew Gustafson
  • Published