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2002

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Full-Text Articles in Law

One Nation Among Many: Policy Implications Of Cross-Border Tax Arbitrage, Diane M. Ring Dec 2002

One Nation Among Many: Policy Implications Of Cross-Border Tax Arbitrage, Diane M. Ring

Boston College Law School Faculty Papers

Cross-border tax arbitrage arises where a transaction is subject to two or more countries’ differing tax regimes. Conflicts between the tax rules create unique opportunities for the parties to engage in profitable tax planning – opportunities that would not be available if the transaction occurred entirely domestically in one of the countries. These opportunities have been a growing feature of the multi-jurisdictional business world and have raised issues concerning whether and how countries, such as the United States, should respond. This Article examines cross-border tax arbitrage in the context of both domestic tax policy and of other international tax issues, and ...


Disability, Reciprocity, And 'Real Efficiency': A Unified Approach, Amy L. Wax Nov 2002

Disability, Reciprocity, And 'Real Efficiency': A Unified Approach, Amy L. Wax

Faculty Scholarship at Penn Law

The Americans with Disabilities Act (ADA) requires private employers to offer reasonable accommodation to disabled persons capable of performing the core elements of a job. Some economists have attacked the statute as ill-advised and inefficient. In examining the efficiency of the ADA, this article analyzes its cost-effectiveness against the following social and legal background conditions: First, society will honor a minimum commitment to provide basic support to persons - including the medically disabled - who, through no fault of their own, cannot earn enough to maintain a minimally decent standard of living. Second, legal and pragmatic factors, including "sticky" or rigid compensation ...


Genetically Modified Crop Innovations And Product Differentiation: Trade And Welfare Effects In The Soybean Complex, Andrei A. Sobolevsky, Giancarlo Moschini, Harvey Lapan Nov 2002

Genetically Modified Crop Innovations And Product Differentiation: Trade And Welfare Effects In The Soybean Complex, Andrei A. Sobolevsky, Giancarlo Moschini, Harvey Lapan

CARD Working Papers

We develop a new partial equilibrium, four-region world trade model for the soybean complex comprising soybeans, soybean oil, and soybean meal. In the model, some consumers view genetically modified Roundup Ready (RR) soybeans and products as weakly inferior to conventional ones; the RR seed is patented and sold worldwide by a U.S. firm; and producers employ a costly segregation technology to separate conventional and biotech products in the supply chain. The calibrated model is solved for equilibrium prices, quantities, production patterns, trade flows, and welfare changes under different assumptions regarding regional government’s production and trade policies, differentiated consumer ...


The Evolution And Utilization Of The Gatt/Wto Dispute Settlement Mechanism, Pao Li Chang Aug 2002

The Evolution And Utilization Of The Gatt/Wto Dispute Settlement Mechanism, Pao Li Chang

Research Collection School Of Economics

This paper attempts to study the usage of the GATT/WTO dispute settlement mechanism and to explain its patterns across different regimes and decades, using a unified theoretical model. This study first explores the role of the degree of legal controversy over a panel ruling in determining countries’ incentives to block/appeal a panel report under the GATT/WTO regime. The model is able to explain the surge in blocking incidence during the 1980s over the preceding GATT years and the immense frequency at which the new appellate procedure under the WTO is invoked. Furthermore, a two-sided asymmetric information framework ...


Fair Weather Or Foul? Maine's Business Climate Revisted, Bureau Of Labor Education. University Of Maine Jul 2002

Fair Weather Or Foul? Maine's Business Climate Revisted, Bureau Of Labor Education. University Of Maine

Bureau of Labor Education

There is no shortage of analyses of the problems of Maine’s economy, or of proposed solutions. Once again, a number of recent reports have argued that Maine has a highly unfavorable business climate, characterized by excessive taxes and excessive regulation. These reports go on to argue that Maine must improve its business climate through such suggested changes as an overhaul of the tax system, elimination of property taxes on business equipment purchases, reducing the state’s regulatory burden, and reducing Maine’s supposedly high “tax burden.” Although the support for these proposals is framed as being “irrefutable,” in reality ...


The Economics Of Patents: An Overview, Corinne Langinier, Giancarlo Moschini Feb 2002

The Economics Of Patents: An Overview, Corinne Langinier, Giancarlo Moschini

CARD Working Papers

In this paper, we review the economic effects of intellectual property rights and specifically address the economics of the patent system. The production and dissemination of new knowledge is fraught with market failures because knowledge is a public good. Patents provide a second-best solution to the resulting appropriability problem. We review the main benefits and costs of the patent system, focusing on the role that patents play in providing incentives for innovation, in promoting the dissemination of knowledge, and in helping technology transfer and commercialization of new technology. From a more normative perspective, we address the questions of what the ...


How Is Constitutional Law Made?, Tracey E. George, Robert J. Pushaw, Jr. Jan 2002

How Is Constitutional Law Made?, Tracey E. George, Robert J. Pushaw, Jr.

Vanderbilt Law School Faculty Publications

Professors George and Pushaw review Maxwell L. Stearns’ book, “Constitutional Process: A Social Choice Analysis of Supreme Court Decision-making.” In his book, Stearns demonstrates that the U.S. Supreme Court fashions constitutional law through process-based rules of decision such as outcome voting, stare decisis, and justiciability. Employing “social choice” economic theory, Professor Stearns argues that the Court strives to formulate rules that promote rationality and fairness. Perhaps the greatest strength of Stearns’ book is that he presents a grand unified theory of the Court’s rules of constitutional process and the resulting development of doctrine. This strength can also be ...


The New Basel Capital Accord: Making It Effective With Stronger Market Discipline, Harald Benink, Clas Wihlborg Jan 2002

The New Basel Capital Accord: Making It Effective With Stronger Market Discipline, Harald Benink, Clas Wihlborg

Business Faculty Articles and Research

In January 2001 the Basel Committee on Banking Supervision proposed a new capital adequacy framework to respond to deficiencies in the 1988 Capital Accord on credit risk. The main elements or ‘pillars’ of the proposal are capital requirements based on the internal risk-ratings of individual banks, expanded and active supervision, and information disclosure requirements to enhance market discipline. We discuss the incentive effects of the proposed regulation. In particular, we argue that it provides incentives for banks to develop new ways to evade the intended consequences of the proposed regulation. Supervision alone cannot prevent banks from ‘gaming and manipulation’ of ...


The Meaning Of Property Rights: Law Versus Economics? , Daniel H. Cole, Peter Z. Grossman Jan 2002

The Meaning Of Property Rights: Law Versus Economics? , Daniel H. Cole, Peter Z. Grossman

Scholarship and Professional Work - Business

Property rights are fundamentals to economic analysis. There is, however, no consensus in the economic literature about what property rights are. Economists define them variously and inconsistently, sometimes in ways that deviate from the conventional understandings of legal scholars and judges. This article explores ways in which definitions of property rights in the economic literature diverge from conventional legal understandings, and how those divergences can create interdisciplinary confusion and bias economic analyses. Indeed, some economists' idiosyncratic definitions of property rights, if used to guide policy, could lead to suboptimal economic outcomes.


Liberal Ideals And Political Feasibility: Guest-Worker Programs As Second-Best Policies, Howard F. Chang Jan 2002

Liberal Ideals And Political Feasibility: Guest-Worker Programs As Second-Best Policies, Howard F. Chang

Faculty Scholarship at Penn Law

No abstract provided.


Lobbying And Information In Politics, John M. De Figueiredo Jan 2002

Lobbying And Information In Politics, John M. De Figueiredo

Faculty Scholarship

No abstract provided.


Towards An Integrated Theory Of Intellectual Property, Gideon Parchomovsky, Peter Siegelman Jan 2002

Towards An Integrated Theory Of Intellectual Property, Gideon Parchomovsky, Peter Siegelman

Faculty Scholarship at Penn Law

No abstract provided.


Corporate Ownership Structure And The Evolution Of Bankruptcy Law: Lessons From The United Kingdom, John Armour, Brian R. Cheffins, David A. Skeel Jr. Jan 2002

Corporate Ownership Structure And The Evolution Of Bankruptcy Law: Lessons From The United Kingdom, John Armour, Brian R. Cheffins, David A. Skeel Jr.

Faculty Scholarship at Penn Law

No abstract provided.


Put-Call Parity And The Law, Michael S. Knoll Jan 2002

Put-Call Parity And The Law, Michael S. Knoll

Faculty Scholarship at Penn Law

No abstract provided.


Lawyers On The Auction Block: Evaluation And Selection Of Class Counsel By Auction, Jill E. Fisch Jan 2002

Lawyers On The Auction Block: Evaluation And Selection Of Class Counsel By Auction, Jill E. Fisch

Faculty Scholarship at Penn Law

The lead counsel auction has attracted increasing attention. Auction advocates mgue that auctions introduce competitive market forces that improve the selection and compensation of class counsel. The benefits of the auction, the;' claim, include lower legal fees and better representation. Careful scrutiny reveals that auction advocates have overlooked substantial methodological problems with the design and implementation of the lead counsel auction. Even if these problems were overcome, the auction procedure is flawed: Auctions are poor tools for selecting firms based on multiple criteria, compromise the judicial role, and are unlikely to produce reasonable fee awards. Although the existing record is ...


A Positive Political Model Of Supreme Court Economic Decisions, Tony Caporale, Harold Winter Jan 2002

A Positive Political Model Of Supreme Court Economic Decisions, Tony Caporale, Harold Winter

Economics and Finance Faculty Publications

We develop a positive political model of the U.S. Supreme Court. Looking at the Court's economic cases for the period 1953-1993, we find a significant larger fraction of conservative decisions under Republican presidents and more conservative leadership of the House and Senate Judiciary Committees. Conservative decisions are also found to be positively correlated with the fraction of the Court appointed by Republican presidents and the rate of price inflation. We argue that our findings cast serious doubt on the common view of the Supreme Court as a completely independent, apolitical institution.


Sovereign Bonds And The Collective Will, Lee C. Buchheit, G. Mitu Gulati Jan 2002

Sovereign Bonds And The Collective Will, Lee C. Buchheit, G. Mitu Gulati

Faculty Scholarship

No abstract provided.


Reconsidering Estoppel: Patent Administration And The Failure Of Festo, R. Polk Wagner Jan 2002

Reconsidering Estoppel: Patent Administration And The Failure Of Festo, R. Polk Wagner

Faculty Scholarship at Penn Law

No abstract provided.


Vertical Integration And Media Regulation In The New Economy, Christopher S. Yoo Jan 2002

Vertical Integration And Media Regulation In The New Economy, Christopher S. Yoo

Faculty Scholarship at Penn Law

No abstract provided.


How I Learned To Stop Worrying And Love The Pill: Adaptive Responses To Takeover Law, Marcel Kahan, Edward B. Rock Jan 2002

How I Learned To Stop Worrying And Love The Pill: Adaptive Responses To Takeover Law, Marcel Kahan, Edward B. Rock

Faculty Scholarship at Penn Law

No abstract provided.


U.S. Farm Policy And The Wto: How Do They Match Up?, Chad E. Hart, Bruce A. Babcock Jan 2002

U.S. Farm Policy And The Wto: How Do They Match Up?, Chad E. Hart, Bruce A. Babcock

Economics Publications

The debate over a new farm bill has focused on how to spend an additional $73.5 billion in funding for the agricultural budget over ten years. The House of Representatives, the Senate Agriculture Committee, and Senators Cochran and Roberts (supported by the Bush Administration) have each proposed a structure for the next farm bill. A critical question becomes whether these proposals conflict with U.S. commitments to limit subsidies under the World Trade Organization (WTO) agreement. This paper explores this issue and concludes with a discussion of the future direction of U.S. farm subsidies and new WTO agreements.


Meeting By Signals, Playing By Norms: Complementary Accounts Of Non-Legal Cooperation In Institutions, Edward B. Rock, Michael L. Wachter Jan 2002

Meeting By Signals, Playing By Norms: Complementary Accounts Of Non-Legal Cooperation In Institutions, Edward B. Rock, Michael L. Wachter

Faculty Scholarship at Penn Law

No abstract provided.


Thinking Outside The Box: The Challenge Of Maine's Regional Service Centers, Bureau Of Labor Education. University Of Maine Jan 2002

Thinking Outside The Box: The Challenge Of Maine's Regional Service Centers, Bureau Of Labor Education. University Of Maine

Bureau of Labor Education

The challenges facing regional service center communities in Maine need to be addressed by creative problem solving which goes beyond the simplistic and flawed assumptions of the "Closed Loop" model of service center revenue. Many existing strategies to increase municipal revenue through tax incentives and inappropriate economic development are often counterproductive to the long-term well-being of service center communities and their quality of life. The health of RSC's is critically important for the well-being of the state as a whole, and the taxpayers in these communities should not be expected to assume the entire financial burden of providing needed ...


Venture Capital On The Downside: Preferred Stock And Corporate Control, William W. Bratton Jan 2002

Venture Capital On The Downside: Preferred Stock And Corporate Control, William W. Bratton

Faculty Scholarship at Penn Law

No abstract provided.


Dangerous Liaisons: Corporate Law, Trust Law, And Interdoctrinal Legal Transplants, Edward B. Rock, Michael L. Wachter Jan 2002

Dangerous Liaisons: Corporate Law, Trust Law, And Interdoctrinal Legal Transplants, Edward B. Rock, Michael L. Wachter

Faculty Scholarship at Penn Law

No abstract provided.


Income Distribution Dynamics With Endogenous Fertility, Daniel L. Chen, Michael Kremer Jan 2002

Income Distribution Dynamics With Endogenous Fertility, Daniel L. Chen, Michael Kremer

Faculty Scholarship

Developing countries with highly unequal income distributions, such as Brazil or South Africa, face an uphill battle in reducing inequality. Educated workers in these countries have a much lower birth rate than uneducated workers. Assuming children of educated workers are more likely to become educated, this fertility differential increaases the proportion of unskilled workers, reducing their wages, and thus their opportunity cost of having children, creating a vicious cycle. A model incorporating this effect generates multiple stedy-state levels of inequality, suggesting that in some circumstances, temporarily increasing access to educational opportunities could permanently reduce inequality. Empirical evidence suggests that the ...


The Mote In Thy Brother’S Eye: A Review Of Human Rights As Politics And Idolatry, William M. Carter Jr. Jan 2002

The Mote In Thy Brother’S Eye: A Review Of Human Rights As Politics And Idolatry, William M. Carter Jr.

Articles

Michael Ignatieffs provocatively titled collection of essays, Human Rights As Politics and Idolatry [hereinafter Human Rights], is a careful examination of the theoretical underpinnings and contradictions in the area of human rights. At bottom, both of his primary essays, Human Rights As Politics and Human Rights As Idolatry, make a claim that is perhaps contrary to the instincts of human rights thinkers and activists: namely, that international human rights can best be philosophically justified and effectively applied to the extent that they strive for minimal ism. Human rights activists generally argue for the opposite conclusion: that international human rights be ...


Judicial Activism: The Good, The Bad, And The Ugly, Arthur D. Hellman Jan 2002

Judicial Activism: The Good, The Bad, And The Ugly, Arthur D. Hellman

Articles

No matter how judges are selected, sooner or later some unfortunate candidate will be labeled a "judicial activist." One has to wonder: Does the term have any identifiable core meaning? Or is it just an all-purpose term of opprobrium, reflecting whatever brand of judicial behavior the speaker regards as particularly pernicious? Implicit in this question are several important issues about the role of courts in our democratic society.

I take my definition from Judge Richard Posner, who describes activist decisions as those that expand judicial power over other branches of the national government or over state governments. Unlike other uses ...


Behavioral Genetics And The Best Interests Of The Child Decision Rule, David J. Herring Jan 2002

Behavioral Genetics And The Best Interests Of The Child Decision Rule, David J. Herring

Articles

This article proposes that modern child custody law should be reassessed in light of recent scientific findings. Judicial determinations of custody use the "best interests of the child" rule. The rule is justified to a large extent by the goal of maximizing child developmental outcomes. The assumption is that a child whose "best interests" are protected stands a better chance of becoming a socially well-adjusted, productive and prosperous citizen.

Recent child development studies have shown that so-called "shared environment," or home environment factors have little effect on child development so long as the shared environment is minimally adequate. Genetics and ...


Community Competence For Matters Of Judicial Cooperation At The Hague Conference On Private International Law: A View From The United States, Ronald A. Brand Jan 2002

Community Competence For Matters Of Judicial Cooperation At The Hague Conference On Private International Law: A View From The United States, Ronald A. Brand

Articles

The Amsterdam Treaty's introduction of Article 65 into the European Community Treaty took little time to achieve practical importance. In fact, the questions were practical as early as they were theoretical. A 1992 request by the United States that the Hague Conference on Private International Law negotiate a global convention on jurisdiction and the recognition of civil judgments resulted in a laboratory for the new-found competence of the Community. Thus, negotiations already underway--which included delegations from all 15 EU Member States--were affected significantly by the transfer of competence from those states to the Community institutions for matters under consideration ...