Digital Commons Network^™

What’S In A Name? Esg Mutual Funds And The Sec’S Names Rule, Jill Fisch, Adriana Robertson

Articles

As investor money flows into environmental, social and governance (“ESG”) mutual funds, regulators have raised growing concerns about greenwashing—specifically that a fund’s name will falsely suggest that the fund invests in companies that meet certain ESG standards. To address these concerns, the Securities & Exchange Commission (“SEC”) proposed amendments to the Investment Company Act (“Names Rule”). The amendments extend the scope of the Names Rule to funds whose names include terms such as ESG, green, or sustainable. If adopted, they will require such funds to invest at least 80% of the value of their assets in companies that meet the …

Discretionary Investing By ‘Passive’ S&P 500 Funds, Adriana Robertson, Peter Molk

Articles

So-called passive index funds—investment funds that are designed to track a prespecified underlying index—have become a dominant force in the investing landscape, collectively controlling over $12 trillion in assets. It is widely assumed that these funds are obligated to follow their underlying index, and that fund managers cannot, or do not, select portfolios that devi- ate from the index’s holdings. As a result, various critics have attacked these funds, raising concerns about their corporate governance incentives and their influence on market efficiency.

We show this assumption is overly simplistic. To do so, we examine funds that track the most prominent …

Administrative Enslavement, Adam Davidson

Articles

No abstract provided.

Tailwiz: Empowering Domain Experts With Easy-To-Use, Task-Specific Natural Language Processing Models, Austin Peters, Tim Daj, Jonah Gelbach, David Freeman, Daniel Khang

Articles

Experts outside the field of machine learning (ML) are interested in using ML techniques to analyze their textual data, but they are inhibited by a lack of convenient natural language processing (NLP) tools. To address this issue, we present tailwiz, an easy-to-use Python tool, powered by supervised fine-tuning of NLP models. tailwiz caters to domain experts by abstracting away technical ML knowledge and running conveniently on personal computers, the preferred mode of computation among domain experts. We show that tailwiz outperforms domain experts’ current textual analysis techniques on a majority of real-world tasks, up to a 384.8% F1 increase (46.18% …

Foreign Affairs, Nondelegation, And The Major Questions Doctrine, Curtis Bradley, Jack Goldsmith

Articles

Some of the Supreme Court Justices and scholars who support a reinvigoration of the nondelegation doctrine would allow for an exception for grants of authority relating to foreign affairs. Others have criticized such an exception as unprincipled or as reflecting improper “foreign affairs exceptionalism.” This Article argues against a foreign affairs exception to the nondelegation doctrine but contends that the doctrine should be applied less strictly when a statutory authorization relates to an area of independent presidential power. The President has more independent power relating to foreign affairs than domestic affairs, so this limitation on the nondelegation doctrine will do …

The Limits Of Diplomacy By Treaty: Evidence From China's Bilateral Investment Treaty Program, Adam Chilton, Weijia Rao

Articles

The web of over 3000 Bilateral Investment Treaties (“BITs”) is the primary body of international law regulating cross-border investments. Research suggests that these treaties may have had a limited impact on promoting new investments, but that they still may have helped to improve countries’ political relationships. In this paper, we document that this pattern was reversed for one of the most prolific signers of BITs: China. Using a stacked-event research design, we find that Chinese BITs are associated with an increase in Bilateral Foreign Direct Investment Flows but a divergence in voting patterns at the United Nations. We then explore …

The Warren Court V. The Roberts Court, Geoffrey Stone

Articles

No abstract provided.

What Brown Taught Us About The Constitution, David Strauss

Articles

No abstract provided.

Falsely Shouting Fire, Genevieve Lakier, Evelyn Douek

Articles

Research on legal diffusion typically focuses on laws’ initial adoption and ignores their later evolution. We develop a typology of three subsequent diffusion patterns: convergence, when countries revise laws to move closer to leading regulators; customization, when countries revise laws to move away from leading regulators; and stagnation, when countries cease legislating, leaving initially adopted laws in place. We then propose a general theory suggesting that economic size and geographic distance from leading regulators predict which of the three patterns countries follow. We explore this theory with case studies on the dynamic diffusion of antitrust laws in Russia, Colombia, and …

Structural Logics Of Presidential Disqualification: An Essay On Trump V. Anderson, Aziz Huq

Articles

No abstract provided.

Opening Dialogue, Lee Bollinger, Geoffrey Stone

Articles

No abstract provided.

Courts As Constitutional Rule-Makers For Elections And Parties: Some Comparative Evidence, Aziz Huq

Book Sections

No abstract provided.

The Necessary And Proper Stewardship Of Judicial Data, Aziz Huq, Zachary Clopton

Articles

Governments and commercial firms create profit and social gain by exploiting large pools of data. One source of valuable data, however, lies in public hands yet remains largely untapped. While the deep reservoirs of data produced by Congress and federal agencies have long been available for public use, the data produced by the federal judiciary is only loosely regulated, imperfectly available to the public at large, and largely ignored by scholars.

The ordinary process of litigation in federal courts generates an enormous volume of data. Especially after recent developments in large language models, this data holds immense potential. It can …

Standing And Probabilistic Injury, Curtis Bradley, Ernest Young

Articles

Standing to sue often turns on questions of probability. For example, public law plaintiffs must show that they are likely to be affected by allegedly unlawful government surveillance or environmental policies, and consumers may wish to sue private defendants over false credit reporting or data breaches that may or may not cause them financial or reputational harm in the future. This Article offers a framework for resolving a wide range of these “probabilistic standing” issues. Our core claim is that courts and commentators ask too much of standing doctrine in probabilistic cases. First, scholars sometimes seek a unified theory of …

The Role (And Limits) Of Developmental Neuroscience In Determining Adolescents’ Autonomy Rights: The Case For Reproductive And Voting Rights, Emily Buss, Julie Maslowsky, Laura Wray-Lake

Articles

No abstract provided.

The Bottini Saga: Why Housing Shortages Are Endemic In California, Richard Epstein

Articles

No abstract provided.

Dynamic Diffusion, Adam Chilton, Anu Bradford, Katerina Linos

Articles

Research on legal diffusion typically focuses on laws’ initial adoption and ignores their later evolution. We develop a typology of three subsequent diffusion patterns: convergence, when countries revise laws to move closer to leading regulators; customization, when countries revise laws to move away from leading regulators; and stagnation, when countries cease legislating, leaving initially adopted laws in place. We then propose a general theory suggesting that economic size and geographic distance from leading regulators predict which of the three patterns countries follow. We explore this theory with case studies on the dynamic diffusion of antitrust laws in Russia, Colombia, and …

Real-World Prior Art, Jonathan Masur, Lisa Ouellette

Articles

No abstract provided.

The Magnet School Wars And The Future Of Colorblindness, Sonja Starr

Articles

The Supreme Court’s recent decision striking down the use of race-based classifications in university admissions reflects its growing commitment to the concept of “colorblindness,” which has implications well beyond education. In anticipation, many schools and other actors are already moving toward alternative, facially race-neutral strategies for promoting diversity and reducing racial disparity. But what will happen when those policies too are challenged because they have race-related motives? Will courts soon find all race-conscious policymaking unlawful based on its ends? This is the next stage of the legal battle over colorblindness, and it is already underway.

The first wave of this …

On The Genealogy Of Intimate Digital Harm, Aziz Huq

Articles

No abstract provided.

The Shadow Of The Law Of The Police, Adam Davidson

Articles

No abstract provided.

Deconstructing The Senior Creditor, Anthony Casey, Andrew Verstein

Coase-Sandor Institute for Law & Economics Research Paper Series

No abstract provided.

Measuring Clarity In Legal Text, Jonathan H. Choi

University of Chicago Law Review

Legal cases often turn on judgments of textual clarity: when the text is unclear, judges allow extrinsic evidence in contract disputes, consult legislative history in statutory interpretation, and more. Despite this, almost no empirical work considers the nature or prevalence of legal clarity. Scholars and judges who study real-world documents to inform the interpretation of legal text primarily treat unclear text as a research problem to be solved with more data rather than a fundamental feature of language.

This Article makes both theoretical and empirical contributions to the legal concept of textual clarity. It first advances a theory of clarity …

Cooperative Federalism And Patent Legislation: A Study Comparing China And The United States, Taorui Guan

Chicago Journal of International Law

How should patent legislative power be allocated between central and local governments in order to construct a patent system conducive innovation? A comparative analysis of the models of the U.S. and China sheds light on this question. The early American states established their patent systems before the formation of the federal system, but the U.S. Constitution arrogated patent legislative power to the federal government, ending the era of decentralized patent systems. This centralized structure ensures uniformity in rules but might hinder the system's adaptability and ability to experiment. In contrast, as China's patent system evolved, its patent legislative power spread …

Occupational Licensing And Labor Market Mobility: Evidence From The Legal Profession, Adam Chilton, Jacob Goldin, Kyle Rozema, Sarath Sanga

Coase-Sandor Institute for Law & Economics Research Paper Series

We study how state occupational licensing requirements shape labor mobility across U.S. legal markets. Drawing on newly collected data, we link variation in state bar exam waiver policies to lawyers’ license acquisitions, professional disciplinary records, and educational histories. We find that bar exam waivers increase the number of experienced lawyers obtaining a new license by 38 percent, but that the additional lawyers are subject to more professional discipline and tend to have graduated from less selective law schools. Our results suggest that state-level occupational licensing regimes can create a trade-off between the supply and quality of professionals in an industry.

Colonial Experiences And Contemporary Laws, Yun-Chien Chang, Adam Chilton, Nuno Garoupa, Mila Versteeg

Coase-Sandor Institute for Law & Economics Research Paper Series

Although research suggests that countries’ colonial experiences are associated with a range of contemporary outcomes, the link between colonial experiences and the substance of countries’ laws remains unclear. We explore this question while making four improvements over past research. First, we use more detailed data on both countries’ colonial experiences and contemporary substantive laws. Second, we directly assess whether countries’ shared legal origins—that is, whether they had a common law or civil law system—or their colonial origins—that is, which country had previously colonized them—are more associated with differences in their contemporary laws. Third, we use a research design that makes …

Disfavored Supreme Court Precedent In The Lower Federal Courts, Curtis A. Bradley, Tara Leigh Grove

Coase-Sandor Institute for Law & Economics Research Paper Series

There has been significant debate in recent years about the stare decisis effect of Supreme Court decisions, prompted in large part by the overturning of Roe v. Wade and, more recently, by the overturning of Chevron. Almost all of this debate has concerned whether the Court should adhere to its own decisions, a matter of “horizontal” stare decisis. But potentially even more significant is the “vertical” effect of Supreme Court precedent on the lower courts, which handle almost all of the federal judicial business. If the Supreme Court expressly overturns a precedent, the lower courts will of course stop following …

Price Discipline For Non-Price Loan Terms, Adam Badawi, Vincent S.J. Buccola, Greg Nini

Coase-Sandor Institute for Law & Economics Research Paper Series

A standard model of capital markets contracting posits that issuers select non-price terms to optimize future flexibility relative to the price they imagine investors will charge for it. To assess such a model’s capacity to explain term selection in the syndicated loan market, we study the secondary market reaction to events—the appearance and proliferation of a new type of restructuring transaction known as an uptier—that spurred change in primary market contracting. We find only weak (and fragile) evidence of a significant price effect. The imprecision of our results reveals, as a general matter, a challenge for scholars of fixed-income contracting …

Bankruptcy By Another Name, Anthony Casey, Joshua Macey

Coase-Sandor Institute for Law & Economics Research Paper Series

Abstract

In a recent Essay, Abbe Gluck, Elizabeth Chamblee Burch, and Adam Zimmerman object to the increasing use of bankruptcy to resolve mass tort claims. They and others are concerned that bankruptcy reduces plaintiff voice, impedes the development of state law remedies, and limits discovery that can drive state and federal regulation regulatory interventions. This Online Response Essay addresses these critiques. Contrary to popular descriptions of the bankruptcy system, bankruptcy courts do not simply aim to maximize economic efficiency and financial recoveries. Bankruptcy includes numerous procedures, including robust disclosure, bellwether trials, future claims representatives, and voting, to ensure a fair …

Predictability And Adaptation In Law And Other Markets, Saul Levmore

Coase-Sandor Institute for Law & Economics Research Paper Series

People and enterprises that are subject to the law find it useful to know what the law is at present, but then also to anticipate future rules. If laws are stable this is easily done. Stability is more common where the judicial branch is concerned, because precedents are often valued, and for good reason. They are more often followed by judges than by those involved in other methods of law- making. But in all of lawmaking, and even in the private sphere, there is value to consistency and certainty. And yet, surprises can be attractive if they are not confronted …