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Full-Text Articles in Law

Consumption Taxation Is Still Superior To Income Taxation, David A. Weisbach, Joseph Bankman Dec 2007

Consumption Taxation Is Still Superior To Income Taxation, David A. Weisbach, Joseph Bankman

Articles

No abstract provided.


The New Legal Realism, Cass R. Sunstein, Thomas J. Miles Dec 2007

The New Legal Realism, Cass R. Sunstein, Thomas J. Miles

Coase-Sandor Working Paper Series in Law and Economics

The last decade has witnessed the birth of the New Legal Realism—an effort to go beyond the old realism by testing competing hypotheses about the role of law and politics in judicial decisions, with reference to large sets and statistical analysis. The New Legal Realists have uncovered a Standard Model of Judicial Behavior, demonstrating significant differences between Republican appointees and Democratic appointees, and showing that such differences can be diminished or heightened by panel composition. The New Legal Realists have also started to find that race, sex, and other demographic characteristics sometimes have effects on judicial judgments. At the same …


Are Judges Overpaid?: A Skeptical Response To The Judicial Salary Debate, Eric A. Posner, G. Mitu Gulati, Stephen J. Choi Dec 2007

Are Judges Overpaid?: A Skeptical Response To The Judicial Salary Debate, Eric A. Posner, G. Mitu Gulati, Stephen J. Choi

Coase-Sandor Working Paper Series in Law and Economics

Nearly everyone thinks that judges are underpaid, but theory and evidence provide little support for this view. Theory suggests that increasing judicial salaries will improve judicial performance only if judges can be sanctioned for performing inadequately or if the appointments process reliably screens out low-ability candidates. However, federal judges and many state judges cannot be sanctioned, and the reliability of screening processes is open to question. An empirical study of the high court judges of the 50 states provides little evidence that raising salaries would improve judicial performance. The case for a pay raise has not been made.


Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic, Jonathan Remy Nash Dec 2007

Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic, Jonathan Remy Nash

Coase-Sandor Working Paper Series in Law and Economics

This Article argues, using the case of responses to traffic congestion, that public choice provides a greater explanation for the emergence of property rights than does economic efficiency. While the traditional solution to traffic congestion is to provide new roadway capacity, that is not an efficient response in that it does not lead to internalization of costs. Moreover, over time new capacity may serve to exacerbate congestion problems: New roadway capacity may induce additional travel that would not have taken place but for the new construction. By contrast, congestion charges—that is, imposing tolls designed to force drivers to internalize the …


Everything Old Is New Again: Lessons From Dodge V. Ford Motor Company, M. Todd Henderson Dec 2007

Everything Old Is New Again: Lessons From Dodge V. Ford Motor Company, M. Todd Henderson

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


Extremism And Social Learning, Cass R. Sunstein, Edward L. Glaeser Dec 2007

Extremism And Social Learning, Cass R. Sunstein, Edward L. Glaeser

Coase-Sandor Working Paper Series in Law and Economics

When members of deliberating groups speak with one another, their predeliberation tendencies often become exacerbated as their views become more extreme. The resulting phenomenon—group polarization—has been observed in many settings, and it bears on the actions of juries, administrative tribunals, corporate boards, and other institutions. Polarization can result from rational Bayesian updating by group members, but in many contexts, this rational interpretation of polarization seems implausible. We argue that people are better seen as Credulous Bayesians, who insufficiently adjust for idiosyncratic features of particular environments and put excessive weight on the statements of others where there are 1) common sources …


Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic Management, Jonathan Remy Nash Dec 2007

Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic Management, Jonathan Remy Nash

Public Law and Legal Theory Working Papers

This Article argues, using the case of responses to traffic congestion, that public choice provides a greater explanation for the emergence of property rights than does economic efficiency. While the traditional solution to traffic congestion is to provide new roadway capacity, that is not an efficient response in that it does not lead to internalization of costs. Moreover, over time new capacity may serve to exacerbate congestion problems: New roadway capacity may induce additional travel that would not have taken place but for the new construction. By contrast, congestion charges—that is, imposing tolls designed to force drivers to internalize the …


Extremism And Social Learning, Cass R. Sunstein, Edward L. Glaeser Dec 2007

Extremism And Social Learning, Cass R. Sunstein, Edward L. Glaeser

Public Law and Legal Theory Working Papers

When members of deliberating groups speak with one another, their predeliberation tendencies often become exacerbated as their views become more extreme. The resulting phenomenon—group polarization—has been observed in many settings, and it bears on the actions of juries, administrative tribunals, corporate boards, and other institutions. Polarization can result from rational Bayesian updating by group members, but in many contexts, this rational interpretation of polarization seems implausible. We argue that people are better seen as Credulous Bayesians, who insufficiently adjust for idiosyncratic features of particular environments and put excessive weight on the statements of others where there are 1) common sources …


The New Legal Realism, Cass R. Sunstein, Thomas J. Miles Dec 2007

The New Legal Realism, Cass R. Sunstein, Thomas J. Miles

Public Law and Legal Theory Working Papers

The last decade has witnessed the birth of the New Legal Realism—an effort to go beyond the old realism by testing competing hypotheses about the role of law and politics in judicial decisions, with reference to large sets and statistical analysis. The New Legal Realists have uncovered a Standard Model of Judicial Behavior, demonstrating significant differences between Republican appointees and Democratic appointees, and showing that such differences can be diminished or heightened by panel composition. The New Legal Realists have also started to find that race, sex, and other demographic characteristics sometimes have effects on judicial judgments. At the same …


The Economic Costs Of Inequality, Richard H. Mcadams Nov 2007

The Economic Costs Of Inequality, Richard H. Mcadams

Coase-Sandor Working Paper Series in Law and Economics

This brief chapter surveys some of the economic literature concerning the instrumental costs of material inequality. Economic theory predicts, and econometric evidence finds, that inequality increases crime and political corruption and, in certain circumstances, constrains growth.


The Real World Of Arbitrariness Review, Cass R. Sunstein, Thomas J. Miles Nov 2007

The Real World Of Arbitrariness Review, Cass R. Sunstein, Thomas J. Miles

Coase-Sandor Working Paper Series in Law and Economics

The Administrative Procedure Act instructs federal courts to invalidate agency decisions that are "arbitrary" or "capricious." In its 1983 decision in the State Farm case, the Supreme Court firmly endorsed the idea that arbitrariness review requires courts to take a "hard look" at agency decisions. The hard look doctrine has been defended as a second-best substitute for insistence on the original constitutional safeguards; close judicial scrutiny is said to discipline agency decisions and to constrain the illegitimate exercise of discretion. In the last two decades, however, hard look review has been challenged on the plausible but admittedly speculative ground that …


Controlling Avian Influenza In Chickens, Maciej Boni, Anup Malani, Abraham Wickelgren, Ramanan Laxminarayan Nov 2007

Controlling Avian Influenza In Chickens, Maciej Boni, Anup Malani, Abraham Wickelgren, Ramanan Laxminarayan

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


Reputation Nation: Law In An Era Of Ubiquitous Personal Information, Lior Strahilevitz Nov 2007

Reputation Nation: Law In An Era Of Ubiquitous Personal Information, Lior Strahilevitz

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


Economic Costs Of Inequality, Richard H. Mcadams Nov 2007

Economic Costs Of Inequality, Richard H. Mcadams

Public Law and Legal Theory Working Papers

This brief chapter surveys some of the economic literature concerning the instrumental costs of material inequality. Economic theory predicts, and econometric evidence finds, that inequality increases crime and political corruption and, in certain circumstances, constrains growth.


Reputation Nation: Law In An Era Of Ubiquitous Personal Information, Lior Strahilevitz Nov 2007

Reputation Nation: Law In An Era Of Ubiquitous Personal Information, Lior Strahilevitz

Public Law and Legal Theory Working Papers

No abstract provided.


The Real World Of Arbitrariness Review, Thomas J. Miles Nov 2007

The Real World Of Arbitrariness Review, Thomas J. Miles

Public Law and Legal Theory Working Papers

The Administrative Procedure Act instructs federal courts to invalidate agency decisions that are “arbitrary” or “capricious.” In its 1983 decision in the State Farm case, the Supreme Court firmly endorsed the idea that arbitrariness review requires courts to take a “hard look” at agency decisions. The hard look doctrine has been defended as a second-best substitute for insistence on the original constitutional safeguards; close judicial scrutiny is said to discipline agency decisions and to constrain the illegitimate exercise of discretion. In the last two decades, however, hard look review has been challenged on the plausible but admittedly speculative ground that …


The Taxation Of Carried Interests In Private Equity, David A. Weisbach Oct 2007

The Taxation Of Carried Interests In Private Equity, David A. Weisbach

Coase-Sandor Working Paper Series in Law and Economics

This essay analyzes the tax treatment of carried interests in private equity. It argues that there are two competing analogies: service income and investment income. Standard approaches are not able to resolve which of the competing analogies is better and often fail even to recognize that there are competing analogies. The best method for determining the proper treatment of carried interests is through direct examination of the effects of each of the possible treatments, known as the theory of line drawing in the tax law. From this approach, it is clear that the better treatment of holders of carried interests …


An Empirical Investigation Into Appellate Structure And The Perceived Quality Of Appellate Review, Rafael I. Pardo, Jonathan Remy Nash Oct 2007

An Empirical Investigation Into Appellate Structure And The Perceived Quality Of Appellate Review, Rafael I. Pardo, Jonathan Remy Nash

Coase-Sandor Working Paper Series in Law and Economics

Commentators have theorized that several factors may improve the process, and thus perhaps the accuracy, of appellate review: (1) review by a panel of judges, (2) subject-matter expertise in the area of the appeal, (3) other lawfinding ability, (4) adherence to traditional notions of appellate hierarchy, and (5) the judicial independence of appellate judges. The considerable discussion that has expounded upon these theories has occurred in a vacuum of abstract generalization. This Article adds a new dimension by presenting the results of an empirical study of bankruptcy appellate opinions issued over a three-year period. The federal bankruptcy appellate structure provides …


Availability Cascades And Risk Regulation, Cass R. Sunstein, Timur Kuran Oct 2007

Availability Cascades And Risk Regulation, Cass R. Sunstein, Timur Kuran

Coase-Sandor Working Paper Series in Law and Economics

An availability cascade is a self-reinforcing process of collective belief formation by which an expressed perception triggers a chain reaction that gives the perception increasing plausibility through its rising availability in public discourse. The driving mechanism involves a combination of informational and reputational motives: Individuals endorse the perception partly by learning from the apparent beliefs of others and partly by distorting their public responses in the interest of maintaining social acceptance. Availability entrepreneurs-- activists who manipulate the content of public discourse-strive to trigger availability cascades likely to advance their agendas. Their availability campaigns may yield social benefits, but sometimes they …


From Seriatim To Consensus And Back Again: A Theory Of Dissent, M. Todd Henderson Oct 2007

From Seriatim To Consensus And Back Again: A Theory Of Dissent, M. Todd Henderson

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


Homeownership 2.0, Lee Anne Fennell Oct 2007

Homeownership 2.0, Lee Anne Fennell

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


An Empirical Investigation Into Appellate Structure And The Perceived Quality Of Appellate Review, Jonathan Remy Nash Oct 2007

An Empirical Investigation Into Appellate Structure And The Perceived Quality Of Appellate Review, Jonathan Remy Nash

Public Law and Legal Theory Working Papers

No abstract provided.


Availability Cascades And Risk Regulation, Timur Kuran Oct 2007

Availability Cascades And Risk Regulation, Timur Kuran

Public Law and Legal Theory Working Papers

An availability cascade is a self-reinforcing process of collective belief formation by which an expressed perception triggers a chain reaction that gives the perception increasing plausibility through its rising availability in public discourse. The driving mechanism involves a combination of informational and reputational motives: Individuals endorse the perception partly by learning from the apparent beliefs of others and partly by distorting their public responses in the interest of maintaining social acceptance. Availability entrepreneurs-- activists who manipulate the content of public discourse-strive to trigger availability cascades likely to advance their agendas. Their availability campaigns may yield social benefits, but sometimes they …


Event Jurisdiction And Protective Coordination: Lessons From September 11th Litigation, Robin Effron Oct 2007

Event Jurisdiction And Protective Coordination: Lessons From September 11th Litigation, Robin Effron

Public Law and Legal Theory Working Papers

Shortly after the tragic events of September 11, 2001, Congress passed the Air Transportation Safety and System Stabilization Act (ATSSSA). The September 11th Victim Compensation Fund (VCF) was the centerpiece of the statute and provided a source of no-fault compensation to the tragedy’s victims and victims’ families. The ATSSSA also allowed victims to elect to pursue traditional litigation instead. The ATSSSA contains three jurisdictional features that have shaped the path of the litigation. The Act created a federal cause of action “for damages arising out of” the terrorist related aircraft crashes; it gave the Southern District of New York original …


From 'Seriatim' To Consensus And Back Again: A Theory Of Dissent, M. Todd Henderson Oct 2007

From 'Seriatim' To Consensus And Back Again: A Theory Of Dissent, M. Todd Henderson

Public Law and Legal Theory Working Papers

No abstract provided.


Causation In Tort: General Populations Vs. Individual Cases, Cass R. Sunstein, William Meadow Sep 2007

Causation In Tort: General Populations Vs. Individual Cases, Cass R. Sunstein, William Meadow

Coase-Sandor Working Paper Series in Law and Economics

To establish causation, a tort plaintiff must show that it is "more probable than not" that the harm would not have occurred if the defendant had followed the relevant standard of care. Statistical evidence, based on aggregate data, is sometimes introduced to show that the defendant's conduct created a statistically significant increase in the likelihood that the harm would occur. But there is a serious problem with the use of such evidence: It does not establish that in the particular case, the injury was more likely than not to have occurred because the defendant behaved negligently. Under existing doctrine, a …


Consumption Taxation Is Still Superior To Income Taxation, David A. Weisbach, Joseph Bankman Sep 2007

Consumption Taxation Is Still Superior To Income Taxation, David A. Weisbach, Joseph Bankman

Coase-Sandor Working Paper Series in Law and Economics

This essay responds to an article by Daniel Shaviro which argues in part that the failure of empirical assumptions behind the permanent income hypothesis undermines the case for preferring consumption taxation over income taxation. We consider each of Shaviro's arguments and conclude that none change the basic considerations in favor of consumption taxation in any significant way. Shaviro concludes that administrability and implementation concerns should be central to the choice of the tax base and that these concerns are likely to point to taxing consumption. We agree with this conclusion.


Other People's Money, M. Todd Henderson, Douglas G. Baird Sep 2007

Other People's Money, M. Todd Henderson, Douglas G. Baird

Coase-Sandor Working Paper Series in Law and Economics

No abstract provided.


Reforming Entrapment Doctrine In United States V. Hollingsworth, Richard H. Mcadams Sep 2007

Reforming Entrapment Doctrine In United States V. Hollingsworth, Richard H. Mcadams

Coase-Sandor Working Paper Series in Law and Economics

This short essay, written for a symposium commemorating Richard Posner's twenty-fifth year as a judge, examines Judge Posner's majority opinion for a closely divided en banc decision on the federal entrapment defense. The cases considers a fundamental issue in the meaning of the element of "predisposition." Judge Posner crafts a boldly innovative reading of the Supreme Court precedent on the topic, introducing the element of "position" or "readiness" to predisposition. I claim the result, properly understood, is to rationalize the doctrine of entrapment.


Causation In Tort: General Populations Vs. Individual Cases, Cass R. Sunstein, William Meadow Sep 2007

Causation In Tort: General Populations Vs. Individual Cases, Cass R. Sunstein, William Meadow

Public Law and Legal Theory Working Papers

To establish causation, a tort plaintiff must show that it is “more probable than not” that the harm would not have occurred if the defendant had followed the relevant standard of care. Statistical evidence, based on aggregate data, is sometimes introduced to show that the defendant’s conduct created a statistically significant increase in the likelihood that the harm would occur. But there is a serious problem with the use of such evidence: It does not establish that in the particular case, the injury was more likely than not to have occurred because the defendant behaved negligently. Under existing doctrine, a …