Analysis of relationship between efficiency of justice services and salaries of judges with two-stage DEA method

In this study it’s aimed to determine the relationship between efficiency of justice service and salaries of judges in European countries with two-stage Data Envelopment Analysis (DEA). Data used in this study are taken from European Judicial System report published by The European Commission for the Efficiency of Justice. In this study two stage DEA is used. In the first stage, the efficiency of justice service is measured by data envelopment analysis. In the second stage, the results obtained from DEA are regressed with variables affecting the courts by Tobit regression model. In the DEA analysis while number of judges and office staff are used as inputs, resolved cases are used as outputs. In the Tobit regression model while the results obtained from DEA are used as dependent variable, judge salaries, judges’ basic education and number of courts are used as explanatory variables. According to Tobit regression model, it’s found that there is a positive and significant relation between efficiency of justice service and salaries of judges in European countries. The increase in judge salaries is significant for the efficiency of courts, but it certainly is not only solution for the efficiency of justice services. Copyright Springer Science+Business Media, LLC 2012