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on Law and Economics |
| By: | Filippo Lancieri; Eric A. Posner; Luigi Zingales |
| Abstract: | Antitrust enforcement in the United States has declined since the 1960s. Building on several new datasets, we argue that this decline did not reflect a popular demand for weaker enforcement or any other kind of democratic sanction. The decline was engineered by unelected regulators and judges who, with a few exceptions, did not express skepticism about antitrust law in confirmation hearings. We find little evidence that academic ideas played an important role in the decline of antitrust enforcement except where they coincided with the interests of big business, which appears to have exercised influence behind the scenes. |
| JEL: | K21 L40 P16 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30326&r= |
| By: | Cabrera, José María; Cid, Alejandro; Veneri, Federico |
| Abstract: | We study the effects of increasing police presence on crime by exploiting the quasi-experimental nature of a large-scale hot spots intervention in a Latin American country that had experienced a significant increase in crime over the last 30 years. We match geocoded data on crime and GPS data that signals the presence of police to 200x200 meters cells covering Montevideo, Uruguay. Employing a difference-in-differences (DiD) approach, our results suggest that the program effectively increased police presence in the designated areas and reduced crime. We found an overall elasticity of 0.47 - a 10% increase in police presence is associated with a decrease of 4.7% in robberies. This three-year intervention allows us to investigate heterogeneous effects by year of intervention and contexts. The program presented greater effects during the first year of the intervention; during 2017, a period associated with significant legal changes in the country's criminal policy, the program did not affect crime. In 2018, we observed positive results in police presence and crime reduction but at a reduced level. We associated this reduction in outcomes with program fatigue which could impact the sustainability of this type of intervention. This study may help policymakers identify the conditions under which hot spots policing programs work and the degree to which they are replicable and scalable. |
| Keywords: | Crime; Robberies; Police; Patrolling; Hot spots; Georeferenced; GPS; Difference-in-differences; Uruguay; Latin America |
| JEL: | J48 K42 O17 |
| Date: | 2022–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113786&r= |
| By: | Lucas Marín Llanes; Hernando Zuleta |
| Abstract: | There is scarce empirical evidence on the impacts of drug consumption decriminalization, especially, on problematic drug use and violence. In 2001, Portugal decriminalized the consumption of all illicit drugs. In this paper, we focus on determining the short, medium, and long-term impact of Portuguese decriminalization on mortality due to drug use and homicides, from both theoretical and empirical perspectives. We model drug consumption using an intertemporal consumption model and the decisions of trafficking firms to gain market share employing an optimization model. Our results suggest a non-linear effect of decriminalization on drug consumption risk and increasing incentives for firms to expand their market share employing violence after decriminalization. Empirically, we estimate a negative short-run effect on drug-related deaths and null long-run impacts of this legal reform. In terms of homicides, we find a positive effects in a range of 28.7%-34.2% in the medium- and long-term. |
| Keywords: | Illicit drugs, decriminalization, drug policy reform, consumption drug-relateddeaths, homicides. |
| JEL: | K14 K38 K42 I18 |
| Date: | 2022–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:020328&r= |
| By: | Barriola, Illan; Deffains, Bruno; Musy, Olivier |
| Abstract: | The literature on legal traditions focuses on the comparative macroeconomic effects of legal systems concentrating on efficiency alone and leaving distributive issues to taxation. However, the legal structure of a country also conditions the primary distribution of income and can have a comparative advantage as a distributive tool relative to taxation. We use cross-section and panel estimates to show that the level of income inequality in a country is indeed correlated with its legal system. By several measures of inequality, on average, common law countries are more unequal than civil law countries. We explain these results by the nature of the systems. The reduced regulation of common law countries limits their capacity to achieve social objectives such as combating income inequality. |
| Keywords: | Legal Origins ; Legal Systems ; Inequality ; Gini ; Top Incomes |
| JEL: | D3 K0 O15 P51 |
| Date: | 2022–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114037&r= |
| By: | Serhii Demchenko; Anatoliy Kostruba (Vasyl Stefanyk Precarpathian National University); Bohdan Melekh; Inna Bolokan; Olga Melnychuk |
| Abstract: | The judiciary is called upon to ensure justice, ensuring human rights and freedoms, and balancing private and public interests. In this aspect, a significant role is played by the correct choice of the court that is authorized to consider a case. This problem is acute in the separation of jurisdiction of commercial, civil and administrative proceedings. In view of this, it is vital to study theoretical approaches to delimiting the jurisdiction of commercial, civil and administrative courts. The aim of the work is to analyze theoretical approaches and problematic issues regarding the delimitation of jurisdiction of commercial, civil and administrative courts. The methodology of the study included such methods as comparison, analogy, generalization, systemic, structural-functional method, method of analysis and synthesis. The study of theoretical approaches to the delimitation of jurisdiction of commercial, civil and administrative courts allowed to analyze the characteristics of each of the jurisdictions. It is also remarked that determining the jurisdiction of the dispute remains a rather difficult problem for the practice of law enforcement, due not only to imperfect legislation, but also to existing dogmas in science and practice. |
| Keywords: | civil jurisdiction,administrative jurisdiction,economic jurisdiction |
| Date: | 2022–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03685030&r= |
| By: | Mohamed Amrhar (ENCG - École Nationale de Commerce et de Gestion d'Agadir - Université Ibn Zohr [Agadir]); Khadija Angade (ENCG - École Nationale de Commerce et de Gestion d'Agadir - Université Ibn Zohr [Agadir]) |
| Abstract: | Financial crime is a widespread issue for organizations, institutions. Criminals adopt more complex techniques to circumvent judicial scrutiny and conduct crimes as regulators and financial authorities use new strategies to detect and prevent financial offenses. Financial crimes are financial offenses perpetrated by individuals within organizations, most of the time in order to acquire a financial advantage through the employment of illegal methods. It involves taking money or other property that belongs to someone else, to obtain a financial or professional gain. The purpose of this article is to present a review of academic literature on financial crimes theories that have emphasized the theatrical framework since the advent of the differential association theory developed by Edwin Sutherland in the 1940s, which shed light on the realms of finance and crime, and exhibit empirical findings from a documentary study of convicted public officials to provide an outline of the main forms of financial offenses that occur in the Moroccan public sector. This documentary study is founded on a nationwide sample of 139 final judgments that was collected based on financial court reports released between 2013 and 2019. The wide range of financial infractions is classified in this paper by adopting two main categories of financial offenses that are, infractions that occur in the public spending area, and state revenues area. The majority of the offenders were convicted of breaking public procurement and public debt recoverylegislation. Using a Likert scale (1 to 5), we concluded that, on average, public officials in high-ranking positions incurred severe financial sanctions. The findings also demonstrate a strong correlation between the offenders' occupations rank and the heaviness of financial sentences. This research only encompasses cases of financial offenses that have passed through the entire legal procedure and whose final decisions have already been issued; other sorts of financial offenses may be excluded owing to a lack of evidence to prosecute public officials. Furthermore, other data regarding financial offenses that occur in the public sphere are present in the criminal records of the criminal chamber responsible for financial crimes, or in cases reported by the National Authority for Probity, Prevention, and the Fight Against Corruption. However access to this data is a challenge. |
| Keywords: | Financial infractions,Categorization,Sanctioning pattern,Public sector,Morocco |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03747888&r= |
| By: | Magaly Faride Herrera Giraldo; Carlos Giovanni González Espitia |
| Abstract: | The study of the spatial distribution of homicides in historically violent cities is important because it provides new interpretations and potential policies for regions that are characterized by a persistent level of crime. While labor market characteristics have been correlated with its presence, few works have examined spatial patterns with the informal labor market. The empirical strategy begins with the calculation of the Moran index and the LISA test, which confirm a spatial association of homicides in neighborhoods. Subsequently, some linear regression models and a Spatial Durbin Model are estimated to confirm the correlation between homicides and the informal labor market. Finally, the intuition of this spatial correlation is shown in some maps. The main results show that the effect of the labor market on homicides does not come from the characteristics of the formal labor market but from the informal labor market, where working conditions are more precarious (no employment contract, health insurance, unemployment insurance, retirement pension, etc.). Thus, the bulk of this effect occurs in some hillside neighborhoods, areas with characteristics associated with informality, illegality, poverty and the lack of public investment in basic services such as electricity, water supply, sewerage or unpaved streets. These results have practical implications for understanding the correlation between economic incentives and crime in developing countries and in less favored cities in developed regions. |
| Keywords: | homicides, labor informality, hillside, emerging hot spot analysis. |
| JEL: | K14 K42 J46 C31 |
| Date: | 2022–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:col:000495:020344&r= |
| By: | Yurii S Shemshuchenko; Anatoliy V Kostruba (Vasyl Stefanyk Precarpathian National University) |
| Abstract: | The article analyses the place of corporate relations in the system of civil law. The relevance of the problem under study is determined by the lack of a clear definition of the concept and essence of the corporation in the legislations of the countries of the post-Soviet space, in contrast to the laws of foreign countries. The task is to determine the main criteria for assessing modern corporate relations from the point of view of existing civil law. A comparative analysis of the essence of corporate relations in Ukraine and abroad was conducted, their place in the system of civil law relations was determined. An objective assessment of the results obtained during the study is given, the prospects for research in this area are indicated. The relevance of the topic is due to the lack of a clear definition of the concept of corporation and corporate relations in existing regulations of civil law. In this regard, there is uncertainty in the interpretation of the concept of corporate relations from the point of view of the current legislation. In this paper, the task is to conduct a study of corporate relations in the aspect of the current civil law of Ukraine, as well as the countries of Europe, Central Asia and the United States, with the aim of determining the main criteria for designating these relations in relation to current regulatory legal acts. The method of comparative analysis of the work of domestic and foreign researchers in this field was selected in order to identify general trends in assessing the topic under study. The current legislation in the field of civil law governing the activities of corporations and corporate relations was evaluated. The applied value of this material is to identify the main criteria for the compliance of corporate relations with civil law with a view to the subsequent application of the results in a practical aspect. Also, of practical legal value is the comparison of existing laws governing civil law in Ukraine and countries taken for comparison. |
| Keywords: | legal entity,normative act,form of ownership,society,union,public relations,corporate law,Corporation law |
| Date: | 2022–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03710893&r= |
| By: | Andreas Stephan (Centre for Competition Policy and School of Law, University of East Anglia) |
| Abstract: | This paper undertakes a qualitative analysis of the relationship between EU cartel enforcement in the chemical industry in the period 1997-2010 and compliance measures announced in the Annual Reports of the undertakings involved. It goes on to focus on Akzo Nobel NV’s unique use of an internal amnesty programme, and the level of compliance in the industry following this period of enforcement. Its findings are consistent with cartel enforcement prompting significant investment in compliance measures, with some evidence of those measures resulting in the earlier reporting of cartels in return for leniency and in enforcement action against only one hard core cartel in the decade that followed. |
| Keywords: | Cartels, compliance |
| Date: | 2022–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:uea:ueaccp:2022_03&r= |
| By: | Haucap, Justus; Heldman, Christina |
| Abstract: | Traditional economic theory of collusion assumed that cartels are inherently unstable, and yet some manage to operate for years or even decades. While the literature has presented several determinants of cartel stability, the vast majority focuses on firms as entities, even though cartels are typically formed between individuals who need to develop structures that allow them to establish trust and ensure cooperation. We analyze 15 German cartels, focusing on the individual participants, the communication and internal structures within the cartels as well as their breakup. Our results indicate that cartel members are highly homogeneous and often rely on existing networks within the industry. Most impressively, only two of the 156 individuals involved in these 15 cartels were female, suggesting that gender also plays a role for cartel formation. We further identify various forms of communication and divisions of responsibilities and show that leniency programs are a powerful tool in breaking up cartels. Based on these results we discuss implications for competition policy and further research. |
| Keywords: | Cartels,Collusion,Social Networks,Trust,Antitrust |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:390&r= |
| By: | Dehos, Fabian; Mensen, Anne |
| Abstract: | This paper evaluates the effectiveness of the German Minimum Legal Drinking Age in reducing excessive drinking and alcohol-related hospital stays. We add to previous studies by looking at a considerably earlier cutoff at age 16, when teenagers in Germany gain legal access to beer, wine, and sparkling wine. Using detailed survey data, we find considerable increases in moderate alcohol consumption and self-perceived drunkenness at age 16, but rather negligible effects for excessive drinking patterns which may lead to coma or deaths. Likewise, our analysis of daily-hospital-admission data reveals no discontinuities in hospital stays due to acute alcohol intoxication. Admissions due to physical injuries, in contrast, increase by about 11% at age 16 which coincides with teenage drinking patterns and incidents when drunken teenagers fall or get into a fight. |
| Keywords: | Alcohol,minimum legal drinking age,binge drinking,hospital admissions |
| JEL: | I12 I18 J13 K32 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:958&r= |
| By: | Juan Pablo Atal; José Ignacio Cuesta; Morten Sæthre |
| Abstract: | Quality regulation attempts to ensure quality and foster competition by reducing vertical differentiation, but it may also have adverse effects on market structure. We study this trade-off in the context of pharmaceutical bioequivalence, which is the primary quality standard for generic drugs. Exploiting the introduction of bioequivalence in Chile, we find that stronger regulation decreased the number of drugs in the market by 21% and increased average paid prices by 13%. We estimate a model of drug entry, certification, and demand to study the role of drug quality, aversion against generics, and certification costs in shaping the equilibrium effects of quality regulation. We find that quality regulation increased demand for generic drugs by resolving asymmetric information and reducing aversion against unbranded generics, which induced entry of high-quality drugs in place of low-quality drugs. Consumer welfare increased despite higher prices and a lower number of firms. We compare minimum quality standards to quality disclosure and other designs of quality regulation. |
| JEL: | I11 L11 L15 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30325&r= |
| By: | Gözlügöl, Alperen; Ringe, Wolf-Georg |
| Abstract: | Global consensus is growing on the contribution that corporations and finance must make towards the net-zero transition in line with the Paris Agreement goals. However, most efforts in legislative instruments as well as shareholder or stakeholder initiatives have ultimately focused on public companies. This article argues that such a focus falls short of providing a comprehensive approach to the problem of climate change. In doing so, it examines the contribution of private companies to climate change, the relevance of climate risks for them, as well as the phenomenon of brown-spinning (ie, the practice of public companies selling their highly polluting assets to private companies). We show that one cannot afford to ignore private companies in the net-zero transition and climate change adaptation. Yet, private companies lack several disciplining mechanisms that are available to public companies, such as institutional investor engagement, certain corporate governance arrangements, and transparency through regular disclosure obligations. At this stage, only some generic regulatory instruments such as carbon pricing and environmental regulation apply to them. The article closes with a discussion of the main policy implications. Primarily, we discuss and evaluate the recent push to extend climate-related disclosure requirements to private companies. These disclosures would not only help investors by addressing information asymmetry, but also serve a wide group of stakeholders and thus aim at promoting a transition to a greener economy. |
| Keywords: | private companies,net-zero transition,climate-related disclosures,brown-spinning,climate change,private equity |
| JEL: | G38 K22 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:lawfin:38&r= |
| By: | Steuer, Sebastian |
| Abstract: | This paper compares the extent of common ownership in the US and the EU stock markets, with a particular focus on differences in the applicable ownership transparency requirements. Most empirical research on common ownership to date has focused on US issuers, largely relying on ownership data obtained from institutional investors' 13F filings. This type of data is generally not available for EU issuers. Absent 13F filings, researchers have to use ownership records sourced from mutual funds' periodic reports and blockholder disclosures. Constructing a 'reduced dataset' that seeks to capture only ownership information available for both EU and US issuers, I demonstrate that the 'extra' ownership information introduced by 13F filings is substantial. However, even when taking differences in the transparency situation into due account, common ownership among listed EU firms is much less pronounced than among listed US firms by any measure. This is true even if the analysis is limited to non-controlled firms. |
| Keywords: | common ownership,profit weights,ownership disclosure,13Ffilings,index funds,passive investors,institutional investors,Big Three |
| JEL: | G23 G34 G38 K22 L10 L41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:354&r= |
| By: | Kulka. Amrita (University of Warwick); Sood, Aradhya (University of Toronto); Chiumenti, Nicholas (FRB Boston) |
| Abstract: | This paper studies how various land-use regulations interact to affect housing supply and affordability. We use cross-sectional variation across space from a novel parcel-level zoning data and a boundary discontinuity design at regulation boundaries to obtain causal estimates for the effect of various zoning regulations on the supply of different types of housing, single-family house prices, multifamily rents, and households’ willingness-to-pay for higher density. We find that relaxing density restrictions (minimum lot size and maximum dwelling units), either alone or jointly with relaxing other regulations, is most effective at increasing supply, particularly of multifamily properties, and reducing rents and house prices. Conversely, enabling multifamily zoning or relaxing height regulations alone has little impact. Our results suggest that the small-scale reforms in zoning regulations proposed around the country can increase housing affordability. However, a fall in multifamily rents is often accompanied by a reduction in single-family house prices, complicating the political economy of land-use reform. |
| Keywords: | multifamily zoning ; height restrictions ; density ; house prices ; rents JEL Codes: R21 ; R31 ; R58 ; H77 ; H11 ; K25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1420&r= |