Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Law
Outsourcing, Modularity, And The Theory Of The Firm, Erin O'Connor, Gregg Kirchhoefer, Margaret M. Blair
Outsourcing, Modularity, And The Theory Of The Firm, Erin O'Connor, Gregg Kirchhoefer, Margaret M. Blair
Vanderbilt Law School Faculty Publications
Firms have increasingly moved productive activities from within to outside the firm through outsourcing arrangements. According to some estimates, the value of outsourcing contracts has been nearly 100 billion dollars per year since 2004. Firm outsourcing happens for a number of reasons, including to save labor costs, capture the benefits of regulatory arbitrage, and take advantage of economies of scale in the provision of firm needs. We review a number of outsourcing contracts for evidence that contract techniques are used to help modularize the relationship between the firm and its service provider. Consistent with what modularity theory might predict, some …
A Former Treasury Adviser On How To Really Fix Wall Street, Morgan Ricks
A Former Treasury Adviser On How To Really Fix Wall Street, Morgan Ricks
Vanderbilt Law School Faculty Publications
Any serious program for Wall Street reform should start with two words: “term out.” “Terming out” is a financial term of art, but its meaning is easily grasped. It simply means funding your business with long-term financing instead of short-term IOUs. To a far greater extent than is commonly understood, our financial sector funds its operations with extremely short-term borrowings. These IOUs must be paid back in a day, a week, or a month. By contrast, termed-out financial firms shun borrowings that come due in less than a year. A terming-out requirement would be costly for Wall Street, but the …