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on Law and Economics |
| By: | Brouwer, E.; Ozbugday, F.C. (Tilburg University, Center for Economic Research) |
| Abstract: | This paper tests whether the transition from the old Economic Competition Act, which was based on the so-called “abuse systemâ€, to the new Competition Act, which was based on “prohibition systemâ€, in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions. |
| Keywords: | Price-cost margins;Competition law;Antitrust immunity;Antitrust enforcement;Dynamic panel data model;the Netherlands. |
| JEL: | K21 L4 L6 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2011038&r=law |
| By: | Kirchgässner, Gebhard |
| Abstract: | In 2007, the Wall Street Journal published an article claiming that each execution saves more than 70 lives. This example is used to show how easy it is, using simple or advanced econometric techniques, to produce results that do or do not support the deterrence hypothesis. Moreover, we also point to some puzzles which have not been satisfactorily solved so far. We then present a critical survey of the papers published in the last ten years. It is shown how simple changes can produce quite different results using the same data. Finally, we draw some conclusions about the usefulness of statistical arguments in policy debates, but also on the moral questions involved in this particular debate. |
| Keywords: | Death Penalty, Deterrence, Econometric Evidence, Ideology |
| JEL: | K14 K42 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2011:15&r=law |
| By: | Francesca Cornaglia; Andrew Leigh |
| Abstract: | Most estimates of the cost of crime focus on victims. Yet it is plausible that an even larger cost of crime occurs via its indirect impact on the mental wellbeing of non-victims. To test how crime affects individuals' mental outcomes, we exploit detailed panel data on mental wellbeing, allowing us to observe the relationship between changes in crime in a local area and changes in the mental wellbeing of resident non-victims in that area (controlling for changes in local economic conditions). Our results suggest that increases in crime rates have a negative impact on the mental wellbeing of residents, with the biggest impacts arising from violent crime. We also find that local press coverage of criminal activity enhances the effect of crime on mental well-being. |
| Keywords: | neighbourhood effects, mental health, fear of crime |
| JEL: | I18 K14 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1049&r=law |
| By: | Bellido, Héctor; Marcén, Miriam |
| Abstract: | This paper explores the effect of divorce law reform on fertility. By modifying the value of marriage, the adoption of no-fault and unilateral divorce may impact fertility decisions. To identify the effects of those reforms on fertility, we use a quasi experiment exploiting the legislative history of divorce liberalization across Europe. Results suggest that divorce law reforms have a negative and permanent effect on fertility. These findings are robust to alternative specifications and controls for unobserved country-specific factors, time-varying factors at the country level, the liberalization of abortion, and the availability of the birth-control pill. Supplemental analysis, developed to understand the mechanisms through which divorce law reforms affect fertility, shows that both marital and out-of-wedlock fertility declines, but that the impact on marital fertility varies depending on whether couples are married prior to or after divorce law reform. |
| Keywords: | Fertility Rate; Divorce Law; Abortion Law; Oral Contraception |
| JEL: | J13 J12 K36 |
| Date: | 2011–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30243&r=law |