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Poisoning The Well: Law & Economics And Racial Inequality, Robert E. Suggs
Poisoning The Well: Law & Economics And Racial Inequality, Robert E. Suggs
Faculty Scholarship
The standard Law & Economics analysis of racial discrimination has stunted our thinking about race. Its early conclusion, that laws prohibiting racial discrimination were unnecessary and wasteful, discredited economic analysis of racial phenomena within the civil rights community. As a consequence we know little about the impact of racial discrimination on commercial transactions between business firms. Laws do not prohibit racial discrimination in transactions between business firms, and the disparity in business revenues between racial minorities and the white mainstream dwarfs disparities in income by orders of magnitude. This disparity in business revenues is a major factor in the persistence …
Trade, Law And Product Complexity, Katharina Pistor, Daniel Berkowitz, Johannes Moenius
Trade, Law And Product Complexity, Katharina Pistor, Daniel Berkowitz, Johannes Moenius
Faculty Scholarship
How does the quality of national institutions that enforce the rule of law influence international trade? Anderson and Marcouiller argue that bad institutions located in the importer’s country deter international trade because they enable economic predators to steal and extort rents at the importer’s border. We complement this research and show how good institutions located in the exporter’s country enhance international trade, in particular, trade in complex products whose characteristics are difficult to fully specify in a contract. We argue that both exporter and importer institutions affect international as well as domestic transaction costs in complex and simple product markets. …