Economics Commons^™

A Primer On Prejudgment Interest, Michael S. Knoll

All Faculty Scholarship

No abstract provided.

Holdups, Standard Breach Remedies, And Optimal Investment, Aaron S. Edlin, Stefan J. Reichelstein

Aaron Edlin

In bilateral trading problems, the parties may be hesitant to make relationship-specific investments without adequate contractual protection. We postulate that the parties can sign noncontingent contracts prior to investing, and can freely renegotiate them after information about the desirability of trade is revealed. We find that such contracts can induce one party to invest efficiently when courts impose either a breach remedy of specific performance or expectation damages. Moreover, specific performance can induce both parties to invest efficiently if a separability condition holds. Expectation damages, on the other hand, is poorly suited to solve bilateral investment problems.

Cadillac Contracts And Up-Front Payments: Efficient Investment Under Expectation Damages, Aaron S. Edlin

Aaron Edlin

An Economic Analysis Of The Death Penalty, Martin Kasten

University Avenue Undergraduate Journal of Economics

From an economic perspective, society should only use capital punishment if the marginal benefits outweigh the marginal costs. In the course of analyzing the economic efficiency of capital punishment, and before providing any recommendations, both the benefits and costs of the death penalty must be evaluated. Since the death penalty has been implemented for centuries, many people believe its benefits outweigh its costs. The evaluation of benefits in Part II will be compared to the costs assessed in Part III to determine if this long held assertion is correct.

Environmental Injustice: Evidence And Economic Implications, Heidi Y. Willers

University Avenue Undergraduate Journal of Economics

Some economic analyses find evidence of environmental injustice--minorities and/or low-income persons are exposed to environmental dangers (locally undesirable land uses, or LULUs) more than their non-minority or more affluent counterparts. Such inefficient allocations result from a violation of perfect property rights. This paper does not determine efficient levels of various environmental dangers, but rather examines and compares several studies in an effort to find a consensus among researchers. No consensus emerges, as differences in research techniques prevent consistent results from being found. Future research must have well-defined methodologies before it can be effectively used by policy makers.

Global Technological Integration, Intellectual Property Rights, And Competition Law: Some Introductory Comments, David J. Gerber

All Faculty Scholarship

No abstract provided.

International Trade And Competition Law In Japan, David J. Gerber

All Faculty Scholarship

No abstract provided.

How Charitable Organizations Influence Federal Tax Policy: "Rent-Seeking" Charities Or Virtuous Politicians?, Nancy J. Knauer

Nancy J. Knauer

Tax-exempt charitable organizations exert considerable influence over Congress, the Department of the Treasury, and the Internal Revenue Service in matters dealing with exemption from federal income tax and the tax deductibility of charitable contributions. This Article uses both public choice and public interest analysis to help identify various features of the charitable community and explain how exempt organizations weild political influence despite the restrictions placed on their activities under the tax code. Arguing that the influence of charitable organizations over tax policy can be explained from either a public choice or public interest vantage point, the Article concluds that the …

Rising Temperatures: Rising Tides, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

Transboundary environmental problems do not distinguish between political boundaries. Global warming is expected to cause thermal expansion of water and melt glaciers. Both are predicted to lead to a rise in sea level. We must enlarge our paradigms to encompass a global reality and reliance upon global participation.

A Reliance Damages Approach To Corporate Lockups, David A. Skeel Jr.

All Faculty Scholarship

No abstract provided.

Disability, Work And Cash Benefits, Jerry L. Mashaw Editor, Virginia P. Reno Editor, Richard V. Burkhauser Editor, Monroe Berkowitz Editor

Upjohn Press

This book examines the economic consequences of work disabilities, and public and private interventions that might enable disabled individuals to enter the work force for the first time, remain at work, or return to work. Three groups of papers are presented. The first group examines ways that labor market changes, policy interventions and individual choices shape the work force. The next analyzes both public and private return to work policies for the work disabled and for those with a severely disabling condition. The final group focuses on the specific needs of the disabled that affect their work force participation, including …

Tax Policy And Economic Development: A Roundtable Assessment, Christopher St. John, Alan P. Brigham, Charles Colgan, Brian H. Mahany

Maine Policy Review

Economic development continues to be a top policy issue for the state of Maine. Within the broad topic of economic development is the issue of tax policy, and the state continues to experiment with changes in traditional taxes, such as sales and income, as well as with newer approaches, such as Employment Tax Increment Financing. What works and what does not work? Can the state afford the potential loss of revenues associated with tax incentives? Who wins and who loses from these policies? To answer these questions, Maine Policy Review convened a panel of experts to review Maine’s record. Two …

The Enforceability Of Norms And The Employment Relationship, Edward B. Rock, Michael L. Wachter

All Faculty Scholarship

No abstract provided.

Effect Of Regulation On Banking: California 1879-1929, Lynne Doti, Richard Runyon

Economics Faculty Articles and Research

California had a virtually unregulated banking environment until the first comprehensive banking regulations were passed in 1905. These regulations, and subsequent changes in 1909, required reserves and paid-up capital. Several tests of commonly accepted measures of safety, such as bank reserves, paid-up capital, bank failures, and real estate loans that resulted in foreclosure, are compared for selected years before and after the regulations. Results do not clearly demonstrate that regulation enhanced the safety of individual banks, but do support the conclusion that regulation enhanced the safety of the banking system as a whole.

America's Shifting Fascination With Comparative Corporate Governance, Edward B. Rock

All Faculty Scholarship

No abstract provided.

Labor Law, Industrial Relations And Employee Choice: The State Of The Workplace In The 1990s: Hearings Of The Commission On The Future Of Worker-Management Relations, 1993-94, Richard N. Block, John Beck, Daniel H. Kruger

Upjohn Press

Block, Beck and Kruger present detailed examples from the testimony given during the Commission on the Future of Worker-Management Relations (commonly called the Dunlop Commission) national and regional hearings. The Commission, by hearing from a wide range of stakeholders, sought to define the state of industrial relations and labor law in the U.S. during the 1990s. Because the Commission's final reports were concerned with policy matters, they only briefly summarized the testimony. This volume draws deeply from the testimony, citing many examples that clearly illustrate the wide variety of relationships between workers and management today. In addition, it shows how …

An Analysis Of Fee Shifting Based On The Margin Of Victory: On Frivolous Suints, Meritorious Suits, And The Role Of Rule 11, Howard F. Chang, Lucian A. Bebchuk

All Faculty Scholarship

When plaintiffs cannot predict the outcome of litigation with certainty, neither the American rule (each litigant bears its own litigation expenses) nor the British rule (the losing litigant pays the attorneys' fees of the winning litigant) would induce optimal decisions to bring suit. Plaintiffs may bring frivolous suits when litigation costs are small relative to the amount at stake; plaintiffs may not bring meritorious suits when litigation costs are large relative to this amount. More general fee-shifting rules are based not only on the identity of the winning party but also on how strong the court perceives the case to …

Book Review. Turbulence!: Challenges And Opportunities In The World Of Work: Are You Prepared For The Future? By Roger E. Herman, Juliet Casper Smith

Articles by Maurer Faculty

No abstract provided.

Corporate Governance And Economic Efficiency: When Do Institutions Matter?, Ronald J. Gilson

Faculty Scholarship

Until the 1980s, corporate governance was largely the province of lawyers. It was a world of specific rules – more or less precise statutory requirements governing shareholder meetings, the election of directors, notice requirements and the like – that were essentially unrelated to what corporations actually do. From this perspective, the corporation's productive activity was simply a black box onto which standard governance structures were superimposed with little effect on what took place within. Corporate law was "trivial" or, as Bayless Manning so evocatively portrayed it, simply "great empty corporation statutes – towering skyscrapers of rusted girders internally welded together …