Digital Commons Network^™

The (Intellectual Property Law &) Economics Of Innocent Fraud: The Ip & Development Debate, Peter Matthew Beattie

ExpressO

This note/essay examines the evidence on the effect of stronger IP laws introduced during the process of international IP law harmonization initiated by the TRIPS agreement, on the economic development of developing countries. It has been argued by proponents of harmonization that stronger IP laws will provide a needed boost to the economic development of developing (and even least-developed) countries. Critics of harmonization have argued that stronger IP laws will have the opposite effect. What has been largely overlooked in this debate is the strength of the evidentiary foundation upon which the arguments of both sides depend. Many of the …

A Bargaining Model Of Holdouts And Takings, Thomas J. Miceli, Kathleen Segerson

Economics Working Papers

The holdout problem is commonly cited as the justification for eminent domain, but the nature of the problem is not well understood. This paper models the holdout problem in a bargaining framework, where a developer seeks to acquire several parcels of land for a large-scale development. We show that in the absence of eminent domain, holdouts are inevitable, threatening costly delay. However, if the developer has the power to use eminent domain to acquire the land from holdouts, all sellers will bargain, thus avoiding delay. An offsetting cost is that owners may negotiate prices below their true value, possibly resulting …

Property Condition Disclosure Law: Why Did States Mandate 'Seller Tell All'?, Anupam Nanda

Economics Working Papers

Thirty-six US states have already enacted some form of seller's property condition disclosure law. At a time when there is a movement in this direction nationally, this paper attempts to ascertain the factors that lead states to adopt disclosure law. Motivation for the study stems from the fact that not all states have yet adopted the law, and states that have enacted the law have done so in different years. The analytical structure employs hazard models, using a unique set of economic and institutional attributes for a panel of 50 US States spanning 21 years, from 1984 to 2004. The …

Monetary Policy, Exchange Rate Overshooting, And Endogenous Physical Capital, Habib Ahmed, C. Paul Hallwood, Stephen M. Miller

Economics Working Papers

We develop an open economy macroeconomic model with real capital accumulation and microeconomic foundations. We show that expansionary monetary policy causes exchange rate overshooting, not once, but potentially twice; the secondary repercussion comes through the reaction of firms to changed asset prices and the firms' decisions to invest in real capital. The model sheds further light on the volatility of real and nominal exchange rates, and it suggests that changes in corporate sector profitability may affect exchange rates through international portfolio diversification in corporate securities.

Adolescent Alcohol Use And Educational Outcomes, Wesley A. Austin

USF Tampa Graduate Theses and Dissertations

There is some controversy over whether adolescent alcohol use has deleterious causal effects on educational outcomes. In particular, does drinking reduce academic performance and school enrollment rates and increase truancy, or does the observed negative correlation between drinking and educational outcomes merely reflect common unobservable factors? This dissertation sheds further light on the issue by estimating the causal impacts of alcohol use on various educational outcomes. Specifically, an instrumental variables model is estimated to study the effects of several drinking measures on grades, school enrollment and absenteeism.

After The Party, Is There A Cure For The Hangover? The Challenges Of The Global Economy To Westphalian Sovereignty, Jackson N. Maogoto, Andrew Coleman

ExpressO

Nation-States and their authority referred to here as national sovereignty is under threat from forces within the global economy. Although globalisation is considered to be a recent phenomenon that has now attracted the attention of writers, its origins lie with those of the nation-state as the nation-state clawed its way to dominate the international community. Nation-states achieved their pre-eminence and dominance of the international community on the backs of free enterprise and capitalism; and now this dependence threatens their very existence. Now belatedly nation-states are attempting to regulate the global economy through the IMF and the World Bank and other …

Review Essay: Radicals In Robes , Dru Stevenson

ExpressO

This essay reviews and critiques Cass Sunstein’s new book entitled Radicals in Robes. After a discussion of Sunstein’s (somewhat misleading) rhetorical nomenclature, this essay argues that Sunstein’s proposed “minimalist” methodology in constitutional jurisprudence is beneficial, but not for the reasons Sunstein suggests. Sunstein alternatively justifies judicial restraint or incrementalism on epistemological self-doubt (cautiousness being an outgrowth of uncertainty) and his fear that accomplishments by Progressives in the last century will be undone by conservative judges in the present. Constitutional incrementalism is more convincingly justified on classical economic grounds. While affirming Sunstein’s overall thesis, this essay offers an alternative rationale for …

The Regulation Of Intercountry Adoption, Mary E. Hansen, Daniel Pollack

ExpressO

As of January 2006, the United States was the only major receiver of children through intercountry adoption that had not implemented the 1993 Hague Convention on Intercountry Adoption. The U.S. signed the Hague Convention in 1994, but did not pass implementing legislation until 2000. Regulations pursuant to the legislation were proposed in 2003, but final regulations did not go into effect until March 2006. The slow pace was partly the result of Congressional wrangling over designation of a regulator and partly the result of a prolonged conversation between the designated regulator and the adoption community over specific regulations.

Finalization of …

The Chameleon Effect: Beyond The Bonding Hypothesis For Cross-Listed Securities, Cally Jordan

ExpressO

This paper is based on a presentation made at the New York Stock Exchange Conference on the Future of Global Equity Trading, March 12, 2004, Sarasota, FL.

Looking back, was it a momentary enthusiasm? The dramatic increase in cross-listed securities, particularly in the United States, was one of the remarkable phenomena of the 1990s capital markets. The bonding, or corporate governance, hypothesis was one of the more intriguing theories to surface to explain the phenomenon. Cross-listing, the hypothesis suggested, might be a bonding mechanism by which firms, incorporated in a jurisdiction with “weak protection” of minority shareholder rights or poor …

On Fairness And Efficiency, Riz Mokal

ExpressO

What is the relationship between fairness, efficiency, accountability, and expertise? What role, if any at all, do these values play in answering the question whether a part of the law is legitimate? This paper provides an answer by introducing a distinction between the substantive and the procedural goals of any part of the legal system. Substantive goals are the ultimate ends of some part of the law, some values or objectives whose pursuit by that part of the law shows why it is desirable to have that law in the first place. Procedural goals are concerned with the methods the …

Economic Analysis Of Law And Economics, Oren Gazal-Ayal

ExpressO

The academic world is wonderful. Like few other professionals, we can choose what we want to do and what questions we think are important, which in our line of work means choosing what topics we want to research. But what influences our choices? This paper examines what drives scholars to select Law and Economics (L&E) as a topic for research. It does so by implementing the methodology of many L&E papers – by assuming that regulation and incentives matter.

Legal scholars face very different academic incentives in different parts of the world. In some countries, the academic standards for appointment, …

Zoning And Eminent Domain Under The New Minimum Scrutiny, John H. Ryskamp

ExpressO

Recently the Supreme Court has made it clearer that minimum scrutiny is a factual analysis. Whether in any government action there is a rational relation to a legitimate interest is a matter of determining whether there is a policy maintaining important facts. This has come about in the Court’s emerging emphasis on developing fact-based criteria for determining government purpose. Thus, those who want to affect zoning and eminent domain outcomes should look to what the Court sees as important facts, and whether government action is maintaining those facts with its proposed land use or eminent domain action.

Managing Risk On A $25 Million Bet: Venture Capital, Agency Costs, And The False Dichotomy Of The Corporation, Robert P. Bartlett Iii

ExpressO

An implicit dichotomy of the corporation exists in legal scholarship. On one side of the dichotomy rests the publicly-held corporation suffering from a significant conflict of interest between its managers and dispersed shareholders; on the other side, the closely-held corporation plagued by inter-shareholder conflict.

This Article argues that understanding the agency problems that can exist within a firm demands a rejection of this traditional dichotomy and the theories of the firm built upon it. Using venture capital finance, this Article demonstrates for the first time how this dichotomy obscures how all firms - public and private - often face the …

Final Offer Arbitration In The New Era Of Major League Baseball, Spencer B. Gordon

ExpressO

This article provides a comprehensive analysis of the economic, athletic, and social impact of final offer salary arbitration in Major League Baseball (“MLB”). The article delves into the motivations, fluctuations, and evolution of the player-owner relationship and free agency. The commentary then focuses on the distinguishing features and intricacies of final offer arbitration. Although salary arbitration in the context of Major League Baseball is a topic oft discussed in the law review setting, the analysis rarely reaches the level exhibited in this article. Moreover, most articles on the subject were written between 1996 and 2000 when the 1994 players’ strike …

Finding New Constitutional Rights Through The Supreme Court’S Evolving “Government Purpose” Test Under Minimum Scrutiny, John H. Ryskamp

ExpressO

By now we all are familiar with the litany of cases which refused to find elevated scrutiny for so-called “affirmative” or “social” rights such as education, welfare or housing: Lindsey v. Normet, San Antonio School District v. Rodriguez, Dandridge v. Williams, DeShaney v. Winnebago County. There didn’t seem to be anything in minimum scrutiny which could protect such facts as education or housing, from government action. However, unobtrusively and over the years, the Supreme Court has clarified and articulated one aspect of minimum scrutiny which holds promise for vindicating facts. You will recall that under minimum scrutiny government’s action is …

Using Capture Theory And Chronology In Eminent Domain Proceedings, John H. Ryskamp

ExpressO

Capture theory--in which private purpose is substituted for government purpose--sheds light on a technique which is coming into greater use post-Kelo v. New London. That case affirmed that eminent domain use need only be rationally related to a legitimate government purpose. Capture theory focuses litigators' attention on "government purpose." That is a question of fact for the trier of fact. This article shows how to use civil discovery in order to show the Court that private purpose has been substituted for government purpose. If it has, the eminent domain use fails, because the use does not meet minimum scrutiny. This …

A Common Tragedy: Condemnation And The Anticommons, Robert L. Scharff

ExpressO

Abstract: Economic development of land may be suboptimal where multiple parties have the legal right to exclude use of the property in question. Michael Heller labeled this phenomenon the ‘anticommons.’ It has been argued that condemnation of private property for economic development is a potentially efficiency-enhancing solution to the anticommons problem. Until recently, this argument was largely academic. However, with the recent Supreme Court decision in Kelo v. City of New London, condemnation for economic development is now a valid policy choice. In this paper, I argue that the economic models used to justify condemnation are fundamentally flawed and that …

Three Essays In Environmental Markets: Dynamic Behavior, Market Interactions, Policy Implications, Irene Margaret Xiarchos

Graduate Theses, Dissertations, and Problem Reports

In order to induce or support voluntary environmental behavior, the mechanisms of existing and possible environmental markets must be understood. This dissertation analyzes two issues related to voluntary environmental behavior: (i) The reactions of firms over the long term to stakeholder concerns about the environment (essay one). (ii) Interactions between recycled and primary markets for metals (essays two and three).;Although these essays consider different phenomena, they are underlain by common factors: the exploration of behavior in environmental markets, the importance of profit as a motivation for firms' actions, the centrality of the role of information, and the necessity to look …

Valuing Cultural Differences In Behavioral Economics, Justin D. Levinson, Kaiping Peng

ExpressO

Behavioral economic research has tended to ignore the role of cultural differences in economic decision-making. The authors suggest that a systematic bias affects existing behavioral economic theory-- cognitive biases are often assumed to be universal. To examine how cultural background informs economic decision-making, and to test framing effects, morality effects, and out-group effects in a cross-cultural study, the authors conducted an experiment in the United States and China. The experiment was designed to test cultural and cognitive effects on a fundamental economic phenomenon-- how people estimate the financial values of objects over time.

Results of the experiment demonstrated dramatic cultural …

Incomplete Contracts In A Complete Contract World, Scott A. Baker, Kimberly D. Krawiec

ExpressO

This paper considers the role that contract doctrine should play in facilitating optimal investment in contractual relationships. All contracts are incomplete in the sense that they do not specify the optimal actions for the buyer and seller in every future contingency. This incompleteness can lead to both under and over-investment in resources specifically targeted to the needs of the other contracting party. To solve these investment problems, economists and legal scholars have looked to complicated contractual solutions and the ownership of assets.

This Article offers another solution: contract doctrine. Specifically, we propose a contractual default rule applicable to all contract …

The Chipped Stone Tool Industries Of Blackman Eddy, Belize, Matthew Patrick Yacubic

Theses and Dissertations

One of the most significant finds at the site of Blackman Eddy, Belize, is a series of superimposed structures that date between 1200 B.C.-A.D. 600 (calibrated). Because it was continuously occupied for over 1800 years, this site provides a unique opportunity to examine long-term socio-economic changes in the eastern Maya lowlands. This thesis is a diachronic study of the chipped stone tool artifacts of Blackman Eddy using technological, attribute, and use-wear analysis. The data collected for this study were examined to see what types of raw materials were used in tool production, what types of tools were produced, how they …

Senseless Kindness: The Politics Of Cost Benefit Analysis, Louis E. Wolcher

ExpressO

This essay identifies a social phenomenon that the Russian-Jewish novelist and war correspondent Vasily Grossman calls "senseless kindness." Emerging without prior warning from certain face-to-face encounters between human beings, the striking reversal of preferences that characterizes this phenomenon can be used to cast a critical light on the practices of Cost Benefit Analysis ("CBA"). Not only does senseless kindness highlight the troubling theoretical problem of determining the "correct" ex ante—the point in time at which CBA measures people's preferences—it also points towards the possibility of a more general critique of CBA's indifference to how preferences are formed and expressed. The …

Should Internet Protocol-Enabled Video Service Provided Over A Telephone Network Be Regulated As A Cable Service?, Hal J. Singer, J Gregory Sidak, Robert W. Crandall

ExpressO

We examine whether, on legal or policy grounds, Internet protocol-enabled video services provided over a telephone network should be regulated as a cable service. We evaluate the history of cable regulation and the services that Congress envisioned to be regulated when it first drafted legislation establishing a regulatory framework for cable television services in 1984. We then examine numerous differences between the IP-enabled video services delivered over a telephone network and those that Congress envisioned when regulating cable television service in 1984 and in subsequent years when it revised the Cable Act of 1984. Finally, we find that municipal franchise …

Antitrust Governance, Yane Svetiev

ExpressO

In this article, the author argues that antitrust law has entered a new phase of its controversial existence. The role of antitrust in moderating inter-firm relationships depends both on the problems of the underlying market regime and the institutional capacity of antitrust decision-makers to respond to those challenges. For much of the 20th century, the model firm was hierarchical: vertical integration within the business organization was a way of achieving transaction cost efficiencies and delivering higher levels of output at lower prices. Recognition of this fact transformed antitrust from its traditional focus on concentrated power, to a policy focused on …

Factors That Impact Development: Foreign Aid And The Millennium Development Goals, Jill Irwin

Student Work

The topic of development in poor countries has recently gained attention and support in part due to the 2000 Millennium Declaration adopted by all United Nations members. Included in the declaration are eight Millennium Development Goals (MDG) which aim at improving global development and are to be achieved by 2015. Due to time restrictions it is important to find effective and efficient ways to improve the issues addressed by the goals. This paper studies foreign aid’s effect on the Millennium Development Goals by using ordinary least squares regression over a time period from 1980 to 2001. This study also investigates …

The Walsh Contracts For Central Bankers Are Optimal After All!, Georgios E. Chortareas, Stephen M. Miller

Economics Working Papers

Candel-Sánchez and Campoy-Miñarro (2004) argue that the Walsh linear inflation contract does not prove optimal when the government concerns itself about the cost of the central bank contract. This result relies on the authors' assumption that the participation constraint does not represent an effective constraint on the central banker's decision. Instead, the government can "impose" or "force" the contract on the central banker, even though the contract violates the participation constraint. We argue that such a contract does not make sense. The government can impose it, but it does not affect the central banker's incentives. The policy outcomes do not …

Do Labor Market Imperfections Increase Trade Protection? A Theoretical Investigation, Xenia Matschke

Economics Working Papers

Labor market imperfections are commonly believed to be a major reason for imposing trade impediments. In this paper, I introduce labor market rigidities that are prevalent in continental European countries into the well-known protection for sale model proposed by Grossman and Helpman (1994). I show that contrary to commonly held views, imperfections in the labor market do not necessarily increase equilibrium trade protection. A testable equilibrium trade protection equation is also derived. The findings in this paper are hence particularly relevant for empirical tests of trade policy determinants in economies with more regulated labor markets.

The Demand For Power Diffusion: A Case Study Of The 2005 Constitutional Referendum Voting In Kenya, Mwangi S. Kimenyi

Economics Working Papers

Recent studies on the history of economic development demonstrate that concentration of power on a monarch or a ruling coalition impedes economic growth and that institutional changes that diffuse power, though beneficial to the society in general, are opposed by some social groups. In November 2005, Kenyans rejected a proposed constitution primarily because it did not reduce the powers of the executive to any significant degree. Using data of voting patterns in the constitutional referendum and following the rational choice framework, I estimate a model of the demand for power diffusion and demonstrate that groups voting decisions depend on expected …

Tiebout Choice And The Voucher, Eric J. Brunner, Jennifer Imazeki

Economics Working Papers

This paper examines who is likely to gain and who is likely to lose under a universal voucher program. Following Epple and Romano (1998, 2003), and Nechyba (2000, 2003a), we focus on the idea that gains and losses under a universal voucher depend on two effects: changes in peer group composition and changes in housing values. We show that the direction and magnitude of each of these effects hinges critically on market structure, i.e., the amount of school choice that already exists in the public sector. In markets with little or no Tiebout choice, potential changes in peer group composition …

California's School Finance Reform: An Experiment In Fiscal Federalism, Eric J. Brunner, Jon Sonstelie

Economics Working Papers

The 1971 ruling of the California Supreme Court in the case of Serrano v. Priest initiated a chain of events that abruptly ended local financing of public schools in California. In seven short years, California transformed its school finance system from a decentralized one in which local communities chose how much to spend on their schools to a centralized one in which the state legislature determines the expenditures of every school district. This paper begins by describing California's school finance system before Serrano and the transformation from local to state finance. It then delineates some consequences of that transformation and …