Cover -- CONTENTS -- OVERVIEW -- JUDICIAL REFORMS FOR GROWTH -- A. The Macro-Judicial Linkages-A Regional Perspective -- B. A Deeper Look at Court Efficiency and Employment -- C. Judicial Reforms for Growth -- REFERENCES -- BOX -- 1. The Strasbourg Program of the Turin Court -- FIGURES -- 1. Average Length of Civil Proceedings -- 2. Backlog of Pending Civil Cases -- 3. Regional Judicial Efficiency and Macro Outcomes -- 4. Average Duration of Ordinary Labor Court Proceedings -- TABLES -- 1. Provincial Growth and Judicial Efficiency -- 2. Summary Statistics -- 3. Probit Models for Probability of Employment -- FUTURE CHALLENGES FACING ITALY'S FINANCIAL SECTOR -- A. The Evolution of the Bank Business Model -- B. Recommendations -- C. Developing Further the Capital Markets -- D. Role of Institutional Investors -- E. Recommendations -- F. Conclusion -- REFERENCES -- FIGURE -- 1. Structural Issues and Profitability in Italian Banks -- IMPROVING PUBLIC SPENDING ALLOCATION AND PERFORMANCE IN ITALY: AN EFFICIENCY ANALYSIS -- A. Background -- B. Comparison with Euro Area Spending and Efficiency Indicators -- C. Conclusions and Policy Recommendations -- REFERENCES -- FIGURE -- 1. Italy and Euro Area: Increase in Spending by Level of Government, 2000-12 -- ANNEXES -- 1. Selected European Countries: DEA Efficiency Scores -- 2. Italian Regions: DEA Efficiency Scores -- THE USE OF PERFORMANCE INFORMATION IN RESOURCE ALLOCATION -- A. Introduction -- B. International Practices and Lessons -- C. Strengthening the Use of Performance Information in the Budget Process -- D. Performance Information in Italy -- REFERENCES -- FIGURE -- 1. PI Usage at Different Allocation Levels -- ANNEXES -- 1. Sample Performance Indicators for the Education Sector -- 2. Determinants of Health Outcomes -- 3. The "Chain Value", From Resources to Results in a Tertiary Education Program.