@techreport{NBERw8572,
 title = "Courts and Relational Contracts",
 author = "Simon Johnson and John McMillan and Christopher Woodruff",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8572",
 year = "2001",
 month = "October",
 URL = "http://www.nber.org/papers/w8572",
 abstract = {Post-communist countries offer new evidence on the relative importance of courts and relationships in enforcing contracts. Belief in the effectiveness of courts has a significant positive effect on the level of trust shown in new relationships between firms and their customers. Well-functioning courts also encourage entrepreneurs to try out new suppliers. Courts are particularly important when specific investments are needed for a relationship to develop. While relationships can sustain existing interactions, workable courts help new interactions to start and develop.},
}