Encyclopedia of Law and Economics

Living Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Efficient Market

Living reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7883-6_44-1


In this article, we deal with some pieces of evidence that are needed to explain the paradox of rapid GDP growth in the face of the dismal competitiveness and inefficiency of the Greek economy during 1995–2008. We show how Greece’s economy structural inefficiencies – inefficiency of justice included – have hit the domestic economy, and we present their impact on the current turmoil of the economy. We offer a specific explanation of the current unfortunate state of the economy, and we briefly summarize the reforms already undertaken towards efficiency. We also suggest avenues of necessary reforms to increase efficiency and overcome the current crisis.

The Engines of Growth, 1995–2008

In Greece, certain positive developments led to the strong growth performance observed since the mid-1990s and up to 2008. Figure 1shows how Greece clearly outperformed, since 1995–1996, the benchmark eurozone economy. However, it is absolutely crucial to look at the factors of “growth” to...


Domestic Supply Labor Market Reform Inflation Differential Civil Court Appeal Court 
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Authors and Affiliations

  1. 1.Brookings InstitutionAthensGreece
  2. 2.Brookings InstitutionUniversity of PiraeusPiraeusGreece