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Gambling On Our Financial Future: How The Federal Government Fiddles While State Common Law Is A Safer Bet To Prevent Another Financial Collapse, Brian M. McCall 2015 University of Oklahoma College of Law

Gambling On Our Financial Future: How The Federal Government Fiddles While State Common Law Is A Safer Bet To Prevent Another Financial Collapse, Brian M. Mccall

Brian M McCall

Many politicians and commentators agree that credit default swaps (CDS) played a significant role in the financial crisis of 2008. Yet, few who observe this role are aware that CDS were set loose on the economy by the federal pre-emption of thousands of years of public policy. Since the time of Aristotle law, philosophy and public policy have been hostile to gambling. Viewed as a socially unproductive zero sum wealth transfer, the law has generally refused to permit parties to use the courts to enforce wagers. Courts and legislatures worked in harmony to control and in some cases punish financial ...


Jurisdiction, Choice Of Law And Property, Daniel M. Klerman 2014 BLR

Jurisdiction, Choice Of Law And Property, Daniel M. Klerman

University of Southern California Legal Studies Working Paper Series

Jurisdiction and choice of law in property disputes has been remarkably stable. The situs rule, which requires adjudication where the property is located and application of that state’s law, remains the norm in most of the world. This article is the first to apply modern economic analysis to choice of law and jurisdiction in property disputes. It largely confirms the wisdom of the situs rule, but suggests some situations where other rules may be superior. For example, in disputes about stolen art, the state where the work was last undisputedly owned may be both the most efficient forum and ...


Economic Analysis Of Legal History, Daniel M. Klerman 2014 BLR

Economic Analysis Of Legal History, Daniel M. Klerman

University of Southern California Legal Studies Working Paper Series

This essay surveys economic analyses of legal history. In order to make sense of the field and to provide examples that might guide and inspire future research, it identifies and discusses five genres of scholarship.

1) Law as the dependent variable. This genre tries to explain why societies have the laws they do and why laws change over time. Early economic analysis tended to assume that law was efficient, while later scholars have usually adopted more realistic models of judicial and legislative behavior that take into account interest groups, institutions, and transactions costs.

2) Law as an independent variable. Studies ...


Rethinking Personal Jurisdiction, Daniel M. Klerman 2014 BLR

Rethinking Personal Jurisdiction, Daniel M. Klerman

University of Southern California Legal Studies Working Paper Series

This article sets out a pragmatic justification for the main features of current personal jurisdiction doctrine. According to that justification, personal jurisdiction rules minimize litigation costs and bias. This approach to personal jurisdiction helps resolve difficult and open jurisdictional issues, such as the scope of general jurisdiction and the validity of jurisdiction based on the stream-of-commerce theory. This article then explores the empirical assumptions underlying this pragmatic explanation for current doctrine and shows how doctrine should change if those empirical assumptions were incorrect. For example, the Supreme Court’s “purposeful availment” requirement is justified only if the danger of bias ...


Inferences From Litigated Cases, Daniel M. Klerman, Yoon-Ho Alex Lee 2014 BLR

Inferences From Litigated Cases, Daniel M. Klerman, Yoon-Ho Alex Lee

University of Southern California Legal Studies Working Paper Series

Priest and Klein (1984) argued that, because of selection effects, the percentage of litigated cases won by plaintiffs will not vary with the legal standard. Many researchers thereafter concluded that one could not make valid inferences about the character of the law from the percentage of cases plaintiffs won, nor could one measure legal change by observing changes in that percentage. This article argues that, even taking selection effects into account, one may be able to make valid inferences from the percentage of plaintiff trial victories. First, it analyzes selection effects under asymmetric information models. It shows that, under a ...


El Principio De Precaución En La Jurisprudencia Constitucional Colombiana: Incertidumbre Y Omisiones Selectivas, Daniel A. Monroy, Camilo E. Ossa 2014 SelectedWorks

El Principio De Precaución En La Jurisprudencia Constitucional Colombiana: Incertidumbre Y Omisiones Selectivas, Daniel A. Monroy, Camilo E. Ossa

Daniel A Monroy C

En ocasiones, ante la incertidumbre científica acerca de los verdaderos efectos que para la salud (humana) puede generar determinadas actividades o la introducción al mercado de nuevos productos, tenemos miedos generalizados sobre algunas cosas que en realidad no revisten peligro para la salud, pero tampoco es un secreto que en ocasiones aceptamos productos o actividades sobre las cuales si debería existir alguna restricción. Al nivel del gobierno, parece equilibrado analizar los peligros que para el medio ambiente o para la salud representan las actividades referenciadas, y en ese orden, estudiar la pertinencia de tomar algún tipo de medida interventora. Sin ...


Demon At The Back Door: Rise Of The Mexican Drug Cartels, Oliver T. Beatty 2014 SelectedWorks

Demon At The Back Door: Rise Of The Mexican Drug Cartels, Oliver T. Beatty

Oliver T Beatty

This article addresses the rise of the violent Mexican drug cartels and searches within the legislative and law enforcement toolbox on how to dethrone the epidemic of violence on the border. The Mexican drug cartels rose from the ashes and structural framework of the Colombian cocaine cartels which gave these new criminal empires their routes, connections, and ease at taking over Pablo Escobar’s monopoly on the drug trafficking game. In addressing the origins of the cartels this article explores the trajectory of cocaine from imported medical remedy to criminalized substance. Additionally this article explores how the Italian mafia was ...


Delay And Its Benefits For Judicial Rulemaking Under Scientific Uncertainty, Rebecca Haw 2014 Boston College Law School

Delay And Its Benefits For Judicial Rulemaking Under Scientific Uncertainty, Rebecca Haw

Boston College Law Review

The Supreme Court’s increasing use of science and social science in its decision making has a rationalizing effect on law that helps ensure that a rule will have its desired effect. But resting doctrine on the shifting sands of scientific and social scientific opinion endangers legal stability. The Court must be responsive, but not reactive, to new scientific findings and theories, a difficult balance for lay justices to strike. This Article argues that the Court uses delay—defined as refusing to make or change a rule in light of new scientific arguments at time one, and then making or ...


Let Educators Educate, Let Builders Build: Making A Case For School Facility Privatization, John Pizzo 2014 SelectedWorks

Let Educators Educate, Let Builders Build: Making A Case For School Facility Privatization, John Pizzo

John Pizzo

No abstract provided.


Curb Your Enthusiasm For Pigouvian Taxes, Victor Fleischer 2014 SelectedWorks

Curb Your Enthusiasm For Pigouvian Taxes, Victor Fleischer

Victor Fleischer

Pigouvian (or "corrective") taxes have been proposed or enacted on dozens of products and activities that may be harmful in excess: carbon, gasoline, fat, sugar, guns, cigarettes, alcohol, traffic, zoning, executive pay, and financial transactions, among others. Academics of all political stripes are mystified by the public’s inability to see the merits of using Pigouvian taxes more frequently to address serious social harms.

This enthusiasm for Pigouvian taxes should be tempered. A Pigouvian tax is easy to design—as a uniform excise tax—if one assumes that each individual causes the same amount of harm with each incremental increase ...


The Efficiency Criterion For Securities Regulation: Investor Welfare Or Cost-Benefit Analysis?, Yoon-Ho Alex Lee 2014 BLR

The Efficiency Criterion For Securities Regulation: Investor Welfare Or Cost-Benefit Analysis?, Yoon-Ho Alex Lee

University of Southern California Law and Economics Working Paper Series

Recent regulatory debates have centered on whether independent agencies should be subjected to a more rigorous cost-benefit analysis requirement than their current requirements. For example, the Financial Regulatory Responsibility Act of 2011 sought to prevent financial regulators from proposing rules unless the agency engages in a quantitative and qualitative assessment of all relevant costs and benefits. In addition, the Independent Agency Regulatory Analysis Act of 2012 sought to require independent agencies to comply with requirements applicable to executive agencies, which would include the requirement to conduct cost-benefit analysis that conforms to the Office of Management and Budget’s Circular A-4 ...


Virtual Currencies: Bitcoin & What Now After Liberty Reserve, Silk Road, And Mt. Gox?, Lawrence J. Trautman 2014 SelectedWorks

Virtual Currencies: Bitcoin & What Now After Liberty Reserve, Silk Road, And Mt. Gox?, Lawrence J. Trautman

Lawrence J. Trautman Sr.

During 2013, the U.S. Treasury Department evoked the first use of the 2001 Patriot Act to exclude virtual currency provider Liberty Reserve from the U.S. financial system. This article will discuss: the regulation of virtual currencies; cybercrimes and payment systems; darknets, Tor and the “deep web;” Bitcoin; Liberty Reserve; Silk Road and Mt. Gox. Virtual currencies have quickly become a reality, gaining significant traction in a very short period of time, and are evolving rapidly. Virtual currencies present particularly difficult law enforcement challenges because of their: ability to transcend national borders in the fraction of a second; unique ...


The Drug Shortage Crisis: What Happens When Generic Manufacturers "Just Say No", Stacey B. Lee 2014 SelectedWorks

The Drug Shortage Crisis: What Happens When Generic Manufacturers "Just Say No", Stacey B. Lee

Stacey B. Lee

In the past five years, the number of drug shortages in the United States has nearly quintupled. The majority of shortages involve generic sterile injectables used to fight infectious diseases and treat cancer. These complex drugs are produced in a concentrated market consisting of only a few generic manufacturers. Any disruption in their supply can result in shortages that leave patients without access to life-saving drugs which in some cases are the only treatment for their condition. These chronic shortages have been linked to many possible factors including product quality concerns, discontinuation of product lines, changes in supply and demand ...


Can The Dark Arts Of The Dismal Science Shed Light On The Empirical Reality Of Civil Procedure?, Jonah B. Gelbach 2014 University of Pennsylvania Law School

Can The Dark Arts Of The Dismal Science Shed Light On The Empirical Reality Of Civil Procedure?, Jonah B. Gelbach

Faculty Scholarship

Empirical questions in civil procedure are too important to be answered as if motivated people weren’t involved in the legal system. Parties don’t conduct their primary behavior that way, lawyers don’t plead or brief that way, and judges don’t decide cases that way. We ought not to study litigation that way, either. This paper is a step toward a better alternative.


Empirical researchers must take seriously the fact that litigation involves human beings, who are motivated and have agency. To make this point concrete, I first step outside the realm of civil procedure and illustrate the ...


Financial Innovation In East Asia, Ross P. Buckley, Douglas W. Arner, Michael Panton 2014 Seattle University School of Law

Financial Innovation In East Asia, Ross P. Buckley, Douglas W. Arner, Michael Panton

Seattle University Law Review

Finance is important for development. However, the Asian financial crisis of 1997–1998 and the global financial crisis of 2008 highlighted the serious risks associated with financial liberalization and excessive innovation. East Asia’s strong focus on economic growth has necessitated a careful balancing of the benefits of financial liberalization and innovation against the very real risks inherent in financial sector development. This Article examines the role of regulatory, legal, and institutional infrastructure in supporting both financial development and limiting the risk of financial crises. The Article then addresses a series of issues with particular developmental significance in the region ...


Culture Wars: Rate Manipulation, Institutional Corruption, And The Lost Normative Foundations Of Market Conduct Regulation, Justin O'Brien 2014 Seattle University School of Law

Culture Wars: Rate Manipulation, Institutional Corruption, And The Lost Normative Foundations Of Market Conduct Regulation, Justin O'Brien

Seattle University Law Review

The global investigations into the manipulation of the London Interbank Offered Rate (Libor) have raised significant questions about how conflicts of interest are managed for regulated entities contributing to benchmarks. An alternative framework, which brings the management of the rate process under direct regulatory supervision, is under consideration, coordinated by the International Organization of Securities Commissions taskforce. The articulation of global principles builds on a review commissioned by the British government that suggests rates calculated by submission can be reformed. This paper argues that this approach is predestined to fail, precisely because it ignores the lessons of history. In revisiting ...


The Timing And Source Of Regulation, Frank Partnoy 2014 Seattle University School of Law

The Timing And Source Of Regulation, Frank Partnoy

Seattle University Law Review

The distinction between specific concrete rules and general abstract principles has engaged legal theorists for decades. This rules–principles distinction has also become increasingly important in corporate and securities law, as well as financial market regulation. This Article adds two important variables to the rules–principles debate: timing and source. Although these two variables are relevant to legal theory generally, the specific goal here is not to address and engage the rules versus principles literature directly. Rather, the goal here is to ask whether the debate about financial market regulation might benefit from a more transparent analysis of temporal and ...


Deferred Prosecutions In The Corporate Sector: Lessons From Libor, Justin O'Brien, Olivia Dixon 2014 Seattle University School of Law

Deferred Prosecutions In The Corporate Sector: Lessons From Libor, Justin O'Brien, Olivia Dixon

Seattle University Law Review

Since 2008, the global economic downturn has significantly in-creased operating pressures on major corporations. Additionally, there has been a corresponding increase in corporate tolerance for corruption, which has coincided with a marked preference by regulators in settling, rather than litigating, enforcement actions. This Article argues that the expansion of prosecutorial authority without appropriate accountability restraints is a major tactical and strategic error. It evaluates whether the mechanism can be made subject to effective oversight. It argues that the current frame-work in the United States is highly problematic, leading to settlements that generate newspaper headlines but not necessarily cultural change. It ...


Are Defined Contribution Pension Plans Fit For Purpose In Retirement?, Jeremy R. Cooper 2014 Seattle University School of Law

Are Defined Contribution Pension Plans Fit For Purpose In Retirement?, Jeremy R. Cooper

Seattle University Law Review

This Article considers the historical basis for the shift from defined benefit plans to defined contribution plans, the structural and practical shortcomings of defined contribution plans, alternate pension models, and adjustments to existing retirement plan models that may offer a degree of protection to plan contributors. Like the United States, Australia is now realizing the limitations of a defined contribution retirement system insofar as it relates the provision of reliable retirement income for a population with increasing life expectancy. Unlike defined contribution plans, defined benefit plans provide a benefit based typically on time served and a predetermined proportion of either ...


Enhancing The Transparency Dialogue In The “Santiago Principles” For Sovereign Wealth Funds, Adam D. Dixon 2014 Seattle University School of Law

Enhancing The Transparency Dialogue In The “Santiago Principles” For Sovereign Wealth Funds, Adam D. Dixon

Seattle University Law Review

The financial crisis ultimately caused Western governments to welcome sovereign wealth fund (SWF) investment as a way to put a floor under collapsing markets and to provide a set of voluntary principles that would underwrite SWFs’ claim to legitimacy in the international community. In the autumn of 2007, then U.S. Treasury Secretary Henry Paulson, in conjunction with the International Monetary Fund, convened the International Working Group of SWFs (IWG) to draft a set of generally accepted principles and practices. These principles are referred to as the “Santiago Principles.” The implicit objective of these twenty-four voluntary principles is to promote ...


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