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2010

Economics

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Articles 1 - 30 of 156

Full-Text Articles in Law

More Information, More Ripoffs: Experiments With Public And Private Information In Markets With Asymmetric Information, Bart Wilson Aug 2014

More Information, More Ripoffs: Experiments With Public And Private Information In Markets With Asymmetric Information, Bart Wilson

Bart J Wilson

No abstract provided.


Exchange, Theft And The Social Formation Of Property, Bart Wilson, Erik Kimbrough, Vernon Smith Aug 2014

Exchange, Theft And The Social Formation Of Property, Bart Wilson, Erik Kimbrough, Vernon Smith

Bart J Wilson

No abstract provided.


Social Preferences Aren't Preferences, Bart Wilson Aug 2014

Social Preferences Aren't Preferences, Bart Wilson

Bart J Wilson

No abstract provided.


Discovering Economics In The Classroom With Experimental Economics And Teh Scottish Enlightenment, Bart Wilson, Taylor Jaworski, Vernon Smith Aug 2014

Discovering Economics In The Classroom With Experimental Economics And Teh Scottish Enlightenment, Bart Wilson, Taylor Jaworski, Vernon Smith

Bart J Wilson

No abstract provided.


Tying, Bundling, And Loyalty/Requirement Rebates, Nicholas Economides Dec 2010

Tying, Bundling, And Loyalty/Requirement Rebates, Nicholas Economides

Nicholas Economides

I discuss the impact of tying, bundling, and loyalty/requirement rebates on consumer surplus in the affected markets. I show that the Chicago School Theory of a single monopoly surplus that justifies tying, bundling, and loyalty/requirement rebates on the basis of efficiency typically fails. Thus, tying, bundling, and loyalty/requirement rebates can be used to extract consumer surplus and enhance profit of firms with market power. I discuss the various setups when this occurs.


Eminent Need: Proposing A Market Participation Exception For Municipal Parker Immunity, Scott Weese Dec 2010

Eminent Need: Proposing A Market Participation Exception For Municipal Parker Immunity, Scott Weese

Scott B Weese

A township is using its eminent domain powers to become a monopsony in the real estate market for the designated area. That township’s monopsony power is then being exploited to create a price-fixing scheme that would violate antitrust laws, either as a per se violation under § 1 of the Sherman Antitrust Act, or as a monopolizing or attempted monopolizing offense under § 2. Under the Sherman Act, effected residents could force the township to appraise each property individually and pay the full market value; if the township refused, they would be subject to the treble damage penalty, erasing any possible ...


Recessions And The Social Safety Net: The Alternative Minimum Tax As A Counter-Cyclical Fiscal Stabilizer, Brian Galle, Jonathan Klick Dec 2010

Recessions And The Social Safety Net: The Alternative Minimum Tax As A Counter-Cyclical Fiscal Stabilizer, Brian Galle, Jonathan Klick

Faculty Scholarship

As recent events illustrate, state finances are procyclical: during recessions, state revenues crash, worsening the effects of economic downturns. This problem is well known, yet persistent. We argue here that, in light of predictable federalism and political economy dynamics, states will be unable to change this situation on their own. Additionally, we note that many possible federal remedies may result in worse problems, such as by creating moral hazard that would induce states to take on excessively risky policy, both fiscal and otherwise. Thus, we argue that policymakers should consider so-called “automatic” stabilizers, such as are found in the federal ...


Thinking Through The Climate Change Challenge, Robert Hahn Nov 2010

Thinking Through The Climate Change Challenge, Robert Hahn

Robert W. Hahn

No abstract provided.


A Contribution To Simple Recursive Forecasting Model, Kyayima Muteba Nov 2010

A Contribution To Simple Recursive Forecasting Model, Kyayima Muteba

Kyayima Muteba

We forecast inflation as a learning (linear) process with optimal learning gain (best forecast) obtained by minimizing the Mean Square Error (MSE) as a function of the constant gain. Our results show that the forecast fits well the true observations and captures well theirs fluctuations


Down The Rabbit Hole: The Madness Of State Film Incentives As As "Solution" To Runaway Production, Adrian Mcdonald Nov 2010

Down The Rabbit Hole: The Madness Of State Film Incentives As As "Solution" To Runaway Production, Adrian Mcdonald

Adrian H. McDonald

This working paper is a "sequel" to my first law review article on runaway productions called "Through the Looking Glass": Runaway Productions and "Hollywood Economics," published in The University of Pennsylvania Journal of Labor and Employment Law in August 2007.

Since 2007, there has been a race to the bottom as virtually every state has enacted significant, if not detrimentally generous, tax incentives to lure film and television production. The efficacy of these incentives is evaluated at length, with particular attention paid to the origin and implementation of tax incentives in California, Massachusetts and Louisiana - states with colorful backgrounds on ...


Determining The Appropriate Interest Rate Under Till In A Bankruptcy Proceeding, C. Wazzan Nov 2010

Determining The Appropriate Interest Rate Under Till In A Bankruptcy Proceeding, C. Wazzan

Christopher P Wazzan

The determination of the appropriate rate of interest in a bankruptcy proceeding is guided by the United States Supreme Court’s decision in Till v. SCS Credit Com. which establishes a formula approach and states one should begin with the Prime Rate and then consider: 1) the circumstances of the bankruptcy estate; 2) the nature of the security; 3) the duration of the reorganization plan; and 4) the feasibility of the reorganization plan. The Supreme Court decision does not specify exactly what these four factors consist of. This paper attempts to superimpose economic principles on the Till decision and provide ...


Agenda: Shale Plays In The Intermountain West: Legal And Policy Issues, University Of Colorado Boulder. Natural Resources Law Center Nov 2010

Agenda: Shale Plays In The Intermountain West: Legal And Policy Issues, University Of Colorado Boulder. Natural Resources Law Center

Shale Plays in the Intermountain West: Legal and Policy Issues (November 12)

This one-day symposium to be held at the Grand Hyatt hotel in Denver will address the technology, economics, environmental impacts, and regulatory issues associated with shale gas development in the Rocky Mountain region. The purpose of this event is to facilitate productive dialogue among a wide range of stakeholders and interested parties to guide policy decisions.


Neutrality And Diversity In The Internet Ecosystem, Andrea Renda Nov 2010

Neutrality And Diversity In The Internet Ecosystem, Andrea Renda

Andrea Renda

The public policy approach to the Internet has become more and more complex as several markets – including fixed and mobile communications, media and content, IT – converge into one single Internet ecosystem. As in all ecosystems, zones and domains depend on each other, and there is no possibility of touching one layer without affecting all others. This paper reflects on the economics of the Internet and emerging business models, and comments on the current debates in each of the layers of modern all-IP architectures, from the unbundling of network elements to net neutrality and the emerging discussion on search neutrality. The ...


On The Formation Of The American Corporate State: The Fuller Supreme Court, 1888-1910, George Skouras Oct 2010

On The Formation Of The American Corporate State: The Fuller Supreme Court, 1888-1910, George Skouras

George Skouras

This paper deals with the formation and legitimation of the American Corporate State by the Fuller Supreme Court. It argues that the Fuller Court was wrong to use the Due Process Clause of the 14th Amendment and natural law to support laissez-faire capitalism and the emergent corporate structure at the expense of labor and labor unions. It also argues that the corporatization of America has created a social and cultural environment that places business as the center of the American universe. This has led to a very asymmetrical relationship between corporations and citizens. It further argues that recent revisionist scholarship ...


Can The Federal Reserve Adopt An Inflation Targeting Regime Under The Current Statutory Arrangements?, Hong Kyoon Cho Oct 2010

Can The Federal Reserve Adopt An Inflation Targeting Regime Under The Current Statutory Arrangements?, Hong Kyoon Cho

Hong Kyoon Cho

This paper discussed legal perspectives in institutional framework of central banking, keyed to monetary policy framework. The statutory objectives of monetary policy provide an environment under which the central bank can design its monetary policy framework, in that the choice of the monetary policy framework could lie within the scope of the spirits embodied in the statutory objectives of monetary policy. Monetary policy framework could illuminate legal aspects of debate, as specifically seen in the Federal Reserve’s case that has adopted not an explicit but an implicit monetary policy framework, namely the Just-Do-It approach. Under the current legal mandate ...


An Empirical Analysis Of Regulator Mandates On The Pass Through Of Switched Access Fees For In-State Long-Distance Telecommunications In The U.S., Debra Aron, David Burnstein, Ana Danies, Gerry Keith Oct 2010

An Empirical Analysis Of Regulator Mandates On The Pass Through Of Switched Access Fees For In-State Long-Distance Telecommunications In The U.S., Debra Aron, David Burnstein, Ana Danies, Gerry Keith

Debra J. Aron

In the parlance of regulatory economics, “pass through” refers to the effect of a change in an incremental cost – generally, the effect of a change in a regulated input price – on the retail price of a good or service. In this paper we examine pass through with regard to the switched access fees paid by long distance companies to local exchange carriers in the United States. We estimate the degree to which long distance companies pass through differences in access rates to their customers, and we examine whether mandates imposed by regulators on long distance companies to pass through access ...


Law, Institutions And Corruption Cleanups In Africa, John Mukum Mbaku Oct 2010

Law, Institutions And Corruption Cleanups In Africa, John Mukum Mbaku

JOHN MUKUM MBAKU

ABSTRACT Since independence, virtually all African countries have suffered and continue to suffer from extremely high rates of bureaucratic corruption. Today, corruption remains one of the most important constraints to social, political and economic development. Despite the efforts made, in several countries, to deal with corruption and other forms of political opportunism (e.g., rent seeking), these phenomena remain entrenched in these countries and continue to constrain entrepreneurship and creation of the wealth that is needed to deal with extremely high rates of poverty and material deprivation. Part of the reason why many African countries have not been able to ...


Title Insurance: One Aspect To Consider In Land Reform In Ghana, Kweku Darfoor Oct 2010

Title Insurance: One Aspect To Consider In Land Reform In Ghana, Kweku Darfoor

Kweku Darfoor

This paper analyzes the land administration policies in Ghana to determine what the impact on the real estate sector has been. Additionally, this paper will briefly analyze title insurance in the United States market and assesses if this same insurance scheme could be implemented in the nation of Ghana to develop a robust real estate sector. Moreover, this paper illustrates how the current regulatory policies in Ghana provide insufficient protection for investors in the real property market, thereby increasing the transaction costs, reducing efficiency, and driving potential investors away from the market because of insecurity in the real estate sector.


Employee "Free" Choice In The Mirror Of Liberty, Fairness And Social Welfare, Harry Hutchison Oct 2010

Employee "Free" Choice In The Mirror Of Liberty, Fairness And Social Welfare, Harry Hutchison

Harry G. Hutchison

The publication of Richard Epstein’s book, THE CASE AGAINST THE EMPLOYEE FREE CHOICE ACT provides an opportunity to reconsider (A) the movement to displace the regime of judge-made law that had previously governed labor relationships, (B) the purpose of the NLRA and (C) the revolutionary implications of the effort to transform the NLRA into a law that places its thumb on the scale in favor of unionization. Describing the central provisions of the Employee Free Choice Act (EFCA), its economic consequences, its constitutional implications, and its connection to the decline of unionism, Epstein offers a balanced portrayal of the ...


How The Payday Predator Hides Among Us: The Predatory Nature Of The Payday Loan Industry And Its Use Of Consumer Arbitration To Further Discriminatory Lending Practices, Michael Satz Oct 2010

How The Payday Predator Hides Among Us: The Predatory Nature Of The Payday Loan Industry And Its Use Of Consumer Arbitration To Further Discriminatory Lending Practices, Michael Satz

Michael A Satz

This Article argues that Payday lending is a predatory lending practice that disproportionately targets minority customers, and that the Payday lending industry utilizes consumer arbitration agreements to further the industry’s discriminatory lending practices. The Article proposes that protections enacted into law to protect military service members from payday lenders should be universally enacted on a national level.


Executive Compensation: The Law And Incentives, Stas Getmanenko Oct 2010

Executive Compensation: The Law And Incentives, Stas Getmanenko

Stas Getmanenko

Excessive executive compensation frequently breeds resentment, undermines consumer faith in the financial system, and overly stigmatizes otherwise common business failures. Frequently, the opponents of lavish pay packages compare executive compensation to the compensation of rank-and-file workers. Such criticism reflects perfectly appropriate societal concerns over pay equity and distribution of wealth within a society. An entirely separate source of friction is the shareholders’ right to benefit from the corporation’s wealth. Shareholders’ dividend is directly reduced by the company’s expenses, one of which executive compensation. For most of today’s public companies the executive compensation expense is often negligible when ...


The Mortgage Market Crisis: A Game Theory Analysis, Raquel Mato Sep 2010

The Mortgage Market Crisis: A Game Theory Analysis, Raquel Mato

Raquel Mato

The mortgage market experienced a global bubble during the early 2000s. The bubble burst in 2006, creating a global financial crisis with widespread repercussions. In this paper, I will discuss how the mortgage market normally works and what changes occurred leading up to the 2000s that allowed for the rapid expansion of the mortgage market. I will talk about contributing factors such as: deregulation of the market, government encouragement of homeownership, the mortgage backed securities market, existing legislation, and a general lack of responsibility by all parties involved. I will use various aspects of game theory to explain how this ...


Statistical Evidence On The Gender Gap In Law Firm Partner Compensation, Marina Angel, Eun Young Whang, Rajiv Banker, Joseph Lopez Sep 2010

Statistical Evidence On The Gender Gap In Law Firm Partner Compensation, Marina Angel, Eun Young Whang, Rajiv Banker, Joseph Lopez

Marina Angel

Our study compiled the largest research sample on the gender gap in compensation at the 200 largest law firms by combining two large databases to examine why women partners are compensated less: because they are less productive than men partners or because they are women. The AmLaw 100 and 200 studies include gross revenue, profits, number of equity and non-equity partners, and the total number of lawyers at each firm. The Vault/MCCA Law Firm Diversity Programs study (Vault/MCCA) includes the gender ratios at each AmLaw 200 firm. Our study covers the years 2002 to 2007.

The ratio of ...


Cleaning Up The Refuse From A Financial Crisis: The Case For A Resolution Management Corporation, James Thomson Sep 2010

Cleaning Up The Refuse From A Financial Crisis: The Case For A Resolution Management Corporation, James Thomson

James B Thomson

Systemic banking and financial crises invariably result in the transfer of a large volume of distressed financial assets into the hands of the government, which must later dispose of them. The fiscal and economic costs of the crisis and the speed of recovery depend on how effectively the government’s salvage operations can re-privatize these assets. To maximize the operations’ effectiveness, I propose that the government create a temporary resolution management corporation. Drawing on Kane’s (1990) asset-salvage principles, as well as the U.S. experience with special-purpose entities for managing and disposing of assets stripped from distressed financial firms ...


Is The Public Utility Holding Company Act A Model For Breaking Up The Banks That Are Too-Big-To-Fail?, Roberta Karmel Sep 2010

Is The Public Utility Holding Company Act A Model For Breaking Up The Banks That Are Too-Big-To-Fail?, Roberta Karmel

Roberta S. Karmel

ABSTRACT FOR “IS THE PUBLIC UTILITY HOLDING COMPANY ACT A MODEL FOR BREAKING UP THE BANKS THAT ARE TO-BIG-TO-FAIL?”

BY ROBERTA S. KARMEL

During the financial crisis of 2007-08 and the debates on regulatory reform that followed, there was general agreement that the “too-big-to-fail” principle creates unacceptable moral hazard. Policy makers divided, however, on the solutions to this problem. Some argued that the banking behemoths in the United States should be broken up. Others argued that dismantling the big banks would be bad policy because these banks would not be able to compete with universal banks in the global capital ...


Free Trade And Labor: Devising A Sensible U.S. Strategy. Lessons For The Colombia Fta, Diana C. Mendez Sep 2010

Free Trade And Labor: Devising A Sensible U.S. Strategy. Lessons For The Colombia Fta, Diana C. Mendez

Diana C Mendez

This paper seeks to provide novel and objective policy recommendations regarding U.S. trade policy with Latin America, in particular with Colombia. The Colombia Free Trade Agreement (Colombia-FTA) has for years spark vociferous debate in U.S. Congress. Labor unions and human rights activists have pushed against congressional ratification of this agreement based on the country’s record of violence against labor unionists. On the other hand, Colombia is one of U.S. strategic allies in Latin America. The result of this debate has been to include more stringent labor standards on the Colombia FTA. However, the prospects for ratification ...


An Economic Analysis Of Patent Law's Inequitable Conduct Doctrine, Thomas F. Cotter Sep 2010

An Economic Analysis Of Patent Law's Inequitable Conduct Doctrine, Thomas F. Cotter

Thomas F. Cotter

In recent years, patent law’s inequitable conduct doctrine has attracted considerable attention from judges, legislators, patent lawyers and commentators, culminating most recently in the Federal Circuit’s decision to reconsider en banc several aspects of the doctrine in Therasense, Inc. v. Becton, Dickinson & Co. Building on the work of other scholars, this Article proposes an instrumental view of the doctrine as, ideally, a tool for inducing patent applicants to disclose the optimal quantity of information relating to the patentability of their inventions; it then presents a formal model of the applicant’s choices in deciding how much information to reveal. The model suggests, among other things, that the conditions that trigger a finding of inequitable conduct, both in the doctrine’s current form and in various proposed reformulations, are at best only a rough proxy for the conditions ...


Big But Brittle: Economic Perspectives On The Future Of The Law Firm In The New Economy, Bernard Burk, David Mcgowan Sep 2010

Big But Brittle: Economic Perspectives On The Future Of The Law Firm In The New Economy, Bernard Burk, David Mcgowan

Bernard A Burk

This Article addresses the deceptively simple questions why, up to the onset of the recent recession, law firms continued to grow at the rapid rate and in the unusual configuration that they have exhibited for over 40 years; and whether lawyers, clients, law students and law schools should expect familiar trends to reassert themselves as the economy improves. We show that the copious academic theorizing addressing these questions (focusing on such notions as diversification, asset specificity, “tournament” theory, and reputational and agency-cost concerns at the level of the firm as a whole) has proved ineffective at explaining or predicting actual ...


Transborder Licensing: New Frontier For Job Creation, Andrea Johnson Sep 2010

Transborder Licensing: New Frontier For Job Creation, Andrea Johnson

Andrea L Johnson

Abstract: TRANSBORDER LICENSING: NEW FRONTIER FOR JOB CREATION http://ssrn.com/abstract=1675285 (September, 11 2010). Available at SSRN: http://ssrn.com/abstract=1675286 By Professor Andrea L. Johnson, alj@cwsl.edu California Western School of Law 225 Cedar St. San Diego, CA 92101 (619) 525-1474 This article makes the case that the best opportunities for creating new jobs in the United States will come from transborder licensing. Transborder licensing involves the creation and disposition of intellectual property (IP), such as copyrights, patents, trademarks, and trade secrets, across geographical boundaries. Licensing is a contractual agreement in which the owner of ...


Do Accounting Rules Matter? The Dangerous Allure Of Mark To Market, Todd Henderson, Richard Epstein Sep 2010

Do Accounting Rules Matter? The Dangerous Allure Of Mark To Market, Todd Henderson, Richard Epstein

Todd Henderson

This paper examines the relative strength of two imperfect accounting rules: historical cost and mark to market. The manifest inaccuracy of historical cost is well known, and, paradoxically one source of its hidden strength. Because private parties know of its evident weaknesses they look elsewhere for information. In contrast, mark to market for hard-to-value assets has many hidden weaknesses. In this paper we show how it creates asset bubbles and exacerbate their negative collateral consequences once they burst. It does the former by allowing banks to adopt generous valuations in up-markets that increase their lending capacity. It does the latter ...