Law and Economics Commons^™

World Trade Organization’S Identity Crisis: Institutional Legitimacy And Growth Potential In The Developing World, Jason Wiener

ExpressO

No abstract provided.

Disappearing Defendants V. Judgment Proof Injurers: Upgrading The Theory Of Tort Law Failures, Giuseppe Dari-Mattiacci, Barbara Mangan

George Mason University School of Law Working Papers Series

Do injurers’ insolvency and victims’ reluctance to sue affect accident prevention in the same way? Are these circumstances less of a problem under the negligence rule than under strict liability? We argue, contrary to the literature, that the answer is, in most cases, negative and make three main points. First, the judgment proof problem and the disappearing defendant problem are shown to have different effects on injurers’ behavior and hence yield dissimilar levels of social welfare. Second, when these two problems occur simultaneously they may have offsetting effects. Third, the negligence rule is superior to strict liability only under some …

How Liability Distorts Incentives Of Manufacturers To Recall Products, Omri Ben-Shahar

Law & Economics Working Papers Archive: 2003-2009

The nature and likelihood of harms associated with products may be revealed over time. As more information is gathered, a manufacturer must decide whether to continue selling the product as is, or to recall it. The paper shows that existing products liability law gives the manufacturers bad incentive to recall products. It shows, counter-intuitively, that as the post-recall liability becomes more severe, manufacturers would be more likely to leave products in the market longer and more often than is socially desirable. It also demonstrates that the law hurts the incentives of manufacturers to acquire better information about the riskiness of …

Procedural Incrementalism: A Model For International Bankruptcy, John A. E. Pottow

Law & Economics Working Papers Archive: 2003-2009

From Parmalat to Yukos, the pace of cross-border bankruptcy filings has been accelerating. Scholarly attention and policy reform have increasingly focused on the financial distress of enterprises with assets and creditors dispersed throughout multiple jurisdictions. Yet despite ongoing globalization and economic integration, insolvency law has remained stubbornly resistant to treaties and other international efforts to design some form of unified, global regime for resolving private financial defaults. Part of the reason progress remains so elusive is that two competing paradigms of international bankruptcy – universalism and territorialism – continue to divide academics and policymakers alike. Proposed treaties premised on one …

Calabresi's The Costs Of Accidents: A Generation Of Impact On Law And Scholarship, Donald G. Gifford

Faculty Scholarship

No abstract provided.

Defining Dicta, Maxwell L. Stearns, Michael Abramowicz

Faculty Scholarship

In recent decades, legal scholars have devoted substantially greater attention to studying the origin and nature of stare decisis than to defining the distinction between holding and dicta. This appears counterintuitive when one considers, first, that stare decisis applies only to holdings of announced precedents, and second, that beyond problematic and rudimentary intuitions, the legal system has failed to develop meaningful definitions of these terms. While lawyers, legal scholars, and jurists likely assume that they can identify dicta when they see it, a careful analysis that categorizes the range of judicial assertions in need of proper characterization reveals that defining …

E-Commerce And The Taxation Doctrine Of Permanent Establishment In The United States And China, Susan K. Duke

Florida State University Journal of Transnational Law & Policy

No abstract provided.

Whatever Happened To Law And Economics?, Anita Bernstein

Faculty Scholarship

No abstract provided.

The Practical Soul Of Business Ethics: The Corporate Manager's Dilemma And The Social Teaching Of The Catholic Church, Leo L. Clarke, Bruce P. Frohnen, Edward C. Lyons

Seattle University Law Review

This Article focuses on and attempts to dispel an overly narrow view of the moral responsibilities of corporations and their managers. Many businessmen and lawyers, relying on prevailing approaches to business ethics, labor under the misperception that the moral ladder in the business world has only one rung: "Be honest." Americans, however, should, can and do expect more from the managers of our large corporations, and virtually every Fortune 100 company publicly espouses a "social responsibility" far exceeding mere honesty. Further, as is demonstrated, American jurisprudence is consistent with those expectations. This Article's thesis is that Catholic Social Teaching provides …

The Confused U.S. Framework For Foreign-Bank Insolvency: An Open Research Agenda, Steven L. Schwarcz

Faculty Scholarship

No abstract provided.

Reform Of Imf Conditionality - A Proposal For Self-Imposed Conditionality, Ofer Eldar

Faculty Scholarship

The IMF has faced criticism of its expansive use of conditionality. The paper proposes a new procedure for IMF lending designed to meet these criticisms by arguing for the legalization and formalization of the procedure for IMF lending in the light of legal concepts derived mainly from national administrative laws. The gist of the procedure is that, rather than have the IMF determine loan conditions following informal negotiations with member countries, countries seeking Fund assistance will design the conditions themselves. The IMF will have specified powers under which to review these conditions. Apart from other procedural requirements, conditions will have …

Strike That, Reverse It: County Of Wayne V. Hathcock: Michigan Redefines Implementing Economic Development Through Eminent Domain, Rachel A. Lewis

Villanova Law Review (1956 - )

No abstract provided.

Fitting The Forum To The Fuss With Sticky Defaults: Failure In The Market For Dispute Resolution Services?, Maurits Barendrecht, Berend R. De Vries

Cardozo Journal of Conflict Resolution

"Fitting the forum to the fuss" - i.e., finding the optimal way to deal with every dispute - is an appealing slogan of proponents of alternative dispute resolution ("ADR"). The phrase also summarizes the contract one would expect rational disputants to make once they are embroiled in a conflict they cannot resolve together. Disputants can "buy" dispute resolution services, such as various forms of court intervention, mediation, or arbitration. Agreeing to a contract to buy such services together with an opponent, however, is likely to be difficult. These difficulties are assessed in this article. The barriers to dispute resolution are …

Envisioning The Modern American Fiscal State: Progressive-Era Economists And The Intellectual Foundations Of The U.S. Income Tax, Ajay K. Mehrotra

Articles by Maurer Faculty

At the turn of the twentieth century, the U.S. system of public finance underwent a dramatic, structural transformation. The late nineteenth-century system of indirect taxes, associated mainly with the tariff, was eclipsed in the early decades of the twentieth century by a progressive income tax. This shift in U.S. tax policy marked the emergence of a new fiscal polity - one that was guided not simply by the functional and structural need for government revenue but by concerns for equity and economic and social justice. This Article explores the paradigm shift in legal and economic theories that undergirded this dramatic …

Time-Inconsistent Management & The Sarbanes-Oxley Act, Manuel A. Utset

Scholarly Publications

No abstract provided.

The Law And Economics Of Development And Environment: An Introduction To The Symposium, Daniel H. Cole

Articles by Maurer Faculty

No abstract provided.

Misassigning Income: The Supreme Court And Attorneys' Fees, Stephen B. Cohen

Georgetown Law Faculty Publications and Other Works

This past term's Supreme Court decision in Commissioner v. Banks and Commissioner v. Banaitis distorts foundational principles, known as assignment of income law, which help identify the person who must report income for federal tax purposes. The Court holds that assignment of income principles require a plaintiff to report as income the portion of a recovery paid to the plaintiffs attorney as a contingent fee. As a result, the plaintiff is taxed at excessively high rates, which may in some cases equal or exceed a confiscatory 100%. Taxing the plaintiff on the attorney-fee portion of a recovery also undermines the …

Beyond Tinkering: Economics After Behavioral Economics, Stephen E. Ellis, Grant M. Hayden

Faculty Journal Articles and Book Chapters

This paper assesses the current state of law and economics, standard and behavioral, and proposes an additional element to the basic belief-desire apparatus of economic theory in order to create a more unified theory of behavior.

The first part of the paper assesses the current status of standard economic theory. While standard models have had their successes, a large and growing body of empirical evidence reveals that people often fail to live up its rational-actor ideal. In response, economists usually stick with standard consumer theory and attempt to explain the anomalous results by referring to some overlooked input (e.g., some …

An Alternative Paradigm For Valuing Breach Of Registration Rights And Loss Of Liquidity, Royce De R. Barondes

University of Richmond Law Review

No abstract provided.

Competition: The Wrong Goal, Hullihen Williams Moore

University of Richmond Law Review

No abstract provided.

Escaping The Gilded Cage: User Created Content And Building The Metaverse, Cory Ondrejka

NYLS Law Review

No abstract provided.

Social Citizen As “Guest Worker”: A Comment On Identities Of Immigrants And The Working Poor, Frank W. Munger

NYLS Law Review

No abstract provided.

Cancellation Of Debt And Other Incidental Items Of Income: Puritan Tax Rules In The U.S., Richard C.E. Beck

NYLS Law Review

No abstract provided.

Democratizing Capital: The History, Law, And Reform Of The Community Reinvestment Act, Richard D. Marsico

NYLS Law Review

No abstract provided.

Does A Computer's Choice Of Where To Reside Implicate The Dormant Commerce Clause?, Robert J. Firestone

NYLS Law Review

No abstract provided.

What Iraq And Argentina Might Learn From Each Other, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Iraq and Argentina each launched a $100 billion debt restructuring last year. The two cases are rarely mentioned together. Most think of Argentina as the quintessential case of financial globalization gone awry - a lapsed market reformer that sank under the weight of (depending on your perspective) misguided liberalization or its own financial chutzpah, and took with it Argentine depositors, Italian retirees, Japanese banks, and offshore investment funds. Iraq's debt has a distinctly preglobalization flavor. Most of its obligations precede the recent wave of financial liberalization. In the words of Iraq's own advisers, its debt restructuring is a quintessential geopolitical …

Economic Rationality Vs. Ethical Reasonableness: The Relevance Of Law And Economics For Legal Ethics, W. Bradley Wendel

Cornell Law Faculty Publications

No abstract provided.

Reading Wood V. Lucy, Lady Duff-Gordon With Help From The Kewpie Dolls, Victor P. Goldberg

Faculty Scholarship

In Wood v. Lucy, Lady Duff-Gordon, Cardozo found consideration in an apparently illusory contract by implying a reasonable effort obligation. Unbeknownst to Cardozo, Wood had agreed to represent Rose O'Neill, the inventory of the kewpie doll in an earlier exclusive contract. Wood sued O'Neill two months prior to entering into the Lucy arrangement. That contract included an explicit best efforts clause. The failure to include such a clause in this contract was, quite likely, deliberate, suggesting that Wood was trying to avoid making a binding commitment to Lucy. The paper examines both the kewpie doll and Lucy contract in some …

Serial Entrepreneurs And Small Business Bankruptcies, Douglas G. Baird, Edward R. Morrison

Faculty Scholarship

Chapter 11 is thought to preserve the going-concern surplus of a financially distressed business – the extra value that its assets possess in their current configuration. Financial distress leads to conflicts among creditors that can lead to inefficient liquidation of a business with going-concern surplus. Chapter 11 avoids this by providing the business with a way of fashioning a new capital structure. This account of Chapter 11 fails to capture what is happening in the typical case. The typical Chapter 11 debtor is a small corporation whose assets are not specialized and rarely worth enough to pay tax claims. There …

Marine-Salvage Law And Marine-Peril-Related Policy: A Second-Best And Third-Best Economic-Efficiency Analysis Of The Problem, The Law, And The Classic Landes And Posner Study, Richard S. Markovits

Faculty Scholarship

This Article (1) delineates the different kinds of allocative costs that marine-peril contingencies can generate and the different kinds of marine-peril-related decisions that can generate allocative inefficiency (marine-salvage-operation investment decisions; decisions about whether to offer to attempt or to actually attempt marine rescues; decisions about the character of the marine-rescue attempts that are made; decisions by potential rescuees to accept or reject offers of marine-rescue attempts; and decisions by potential rescuees to make or reject various marine-peril-avoidance moves); (2) defines the formal meaning of "the most-allocatively-efficient response a State can make to marine-peril contingencies;" (3) explains why, standing alone, judge-prescribed …