cssi/SciSciGPT-SciSciNet huggingface dataset:
Determining the Appropriate Standard of Review in WTO Disputes

The WTO's dispute settlement system - and, more particularly, WTO panels and the Appellate Body (AB) - are charged with ruling on the consistency of the actions of WTO Members with the obligations imposed by the WTO Agreements. To do so, panelists and AB judges must first determine the standard of review they are to adopt. A more deferential standard will increase the range of activities that the panel or AB will find permissible, while a more stringent standard will narrow that range. With the exception of the Anti-Dumping Agreement, however, neither the Dispute Settlement Understanding nor the specific WTO Agreements themselves provide much guidance regarding the standard of review that should be applied. Article 11, the key provision in the DSU, leaves a great deal to be worked out in litigation. Identifying the appropriate standard of review requires a determination as to whether the authority to approve certain decisions lies with the Member State or the judicial organs of the WTO. A deferential standard leaves that authority substantially with the state, while a de novo standard gives the panel that authority. This paper provides an analysis of the costs and benefits associated with more or less stringent standards of review. It argues that WTO-review is desirable primarily because panels and the AB are able to approach disputed issues without bias. The states involved in a dispute, in contrast, have an incentive to view both facts and law in a way that suits their own objectives. Panels and the AB, however, are poorly positioned, relative to states, to assess the legal, cultural, economic, and political context within states. This inevitability means that, in some cases, it is wise to leave greater discretion to the states. The different abilities of Member States and the judicial organs of the WTO allow us to develop a sense of when the standard of review should be more or less deferential. Where a lack of bias is particularly important and where the issues involved are ones in which a panel can be expected to have great expertise, a more stringent standard of review would be appropriate. Where, on the other hand, a case demands detailed knowledge of events or priorities in a state, the case for a more deferential standard of review is stronger. After elaborating the above perspective on the appropriate standard of review, the paper then provides several examples of the standards that the panels and the AB should adopt, as well as examples of standards they have actually adopted. Among the disputes considered will be those implicating the SPS Agreement; the Anti-Dumping Agreement; the Safeguards Agreement; the national treatment and most-favored nation obligations; and the general exceptions contained in Article XX of the GATT.
Lawyer Discrimination Against Clients: Outright Rejection--No; Limitations on Issues and Arguments-Yes

* Professor of Law, Western New England College School of Law. A.B.,1967, Dartmouth College; J.D., 1971, Harvard University; Commissioner, Massachusetts Commission Against Discrimination, 1977-1981. I would like to thank and to commend my colleagues and our law review for their commitment to producing this symposium and the Massachusetts Commission Against Discrimination for continuing to fight the good fight. 1. I use the adjective "public" with discrimination to refer to acts of discrimina­ tion both by public entities and by private entities (employers, landlords, banks, doc­ tors, accountants and lawyers) acting in the "public sphere." See generally MICHAEL WALZER, SPHERES OF JUSTICE: A DEFENSE OF PLURALISM AND EQUALITY (1983). Our legal and social culture generally recognizes a sphere of private autonomy and permits discrimination within that private sphere, such as in the choice of one's friends. While the line between the public and private spheres is socially constructed, contingent and not always clear, the conduct of lawyers in the practice of law is unquestionably in the public sphere. 2. The term "discriminate" in this article means "to treat differently" because of race, sex, national origin, religion, disability, sexual preference and any other character­ istics deemed unlawful by the state's civil rights laws. I am referring only to the dispa­ rate treatment theory of discrimination, "the most easily understood type of discrinlination." International Bhd. of Teamsters v. United States, 431 U.S. 324, 335 n.15 (1977).
Managers’ Ethical Evaluations of Earnings Management and Its Consequences*

Despite a recent focus on the ethics of earnings management, research has generally not examined the specific ethical dilemma that arises when a choice to engage in earnings management results in positive organizational consequences. This study focuses on the consequences of earnings management behavior in response to the question: Do the ends of positive organizational consequences justify the means of earnings management? We investigate manager evaluations of, and reactions to, a scenario in which a hypothetical employee makes a choice whether or not to engage in earnings management behavior, with consequences that are either favorable or unfavorable to the organization. Two hundred and sixty-four experienced managers provided responses to the scenario in a controlled experimental research design. The results indicate that managers may be motivated to discount the ethical impact of earnings management behavior when the consequence has a favorable impact on the organization—implying that the ends justify the means. This finding, in turn, suggests that incrementalism, or the ethical “slippery slope” of overlooking seemingly minor ethical breaches, can undermine efforts to establish a strong ethical tone throughout the organization. Implications of these findings for corporate governance and future research are discussed.
In Search of Empirical Evidence that Links Rent and User Cost

Abstract Most models of the rental housing market assume a close link between the level of residential rents and the after-tax user cost of rental housing capital. However, little empirical evidence exists to establish the strength of this link or the speed with which rents adjust to changes in user cost or tax policy. This paper develops and estimates an econometric model of the rental housing market to shed light on both of these issues. U.S. annual data for 1964–1993 are used to generate two-stage least-squares estimates of a four-equation structural model. Although the results are generally consistent with expectations and reveal several interesting relationships among the system variables, the estimates fail to identify a strong relationship between rent and user cost. About half of any increase in user cost is ultimately passed along as higher rent. The adjustment process also takes a long time, with only about a third of the long-run effect realized within 10 years of a user cost shock. The fundamental reason for this result is that our estimate of the user cost series, based on widely accepted procedures, is much more volatile than the residential rent series.
Portfolio Dynamics and Alliance Termination: The Contingent Role of Resource Dissimilarity

Abstract This article takes a portfolio approach to examine how an alliance's propensity of termination is influenced by its resource relationships with other alliances of the firm. Whereas previous research has suggested that similar partner resources in a portfolio create redundancy and that dissimilar resources are beneficial, this study argues that redundancy may be necessary to ensure stable access to resources and that synergies from dissimilar resources may be difficult to realize. Thus, under some conditions, resource dissimilarity may be less supportive of, or even detrimental to, the continuity of an alliance. The author identifies several conditional factors that change the role of resource dissimilarity. While relational connectedness between the focal partner and other partners of the firm is found to strengthen the supporting effect of resource dissimilarity on alliance continuity, vertical connectedness of alliance activities, formation of substituting alliances by the focal partner, and ma...
Relative wealth concerns and complementarities in information acquisition

This paper studies how relative wealth concerns, in which a person’s satisfaction with their own consumption depends on how much others are consuming, aect investors’ incentives to acquire information. We find that such externalities can generate complementarities in information acquisition within the standard rational expectations paradigm. When agents are sensitive to the wealth of others, they herd on the same information, trying to mimic each other’s trading strategies. We show that there can be multiple herding equilibria in which some assets receive considerable attention while others with similar characteristics are ignored. Further, dierent communities of agents may specialize in dierent assets. This multiplicity of equilibria generates jumps in asset prices: an
Cross-listing Premium in the US and the UK Destination

Abstract This paper tests the main hypothesis that firms that cross-list have higher valuations, and provides evidence on the valuation effect of cross-listing on a major non-US market, the UK compared to the US market from source countries in the Asia-Pacific region in 2003–2004. We find evidence that there is a cross-listing premium in both markets. However, the evidence on whether the premium is significantly different in the two countries is mixed. Using univariate, OLS and random effects methods, we find some evidence that the premium in the US is higher, but using a treatment effect methodology we find that the difference is not robust.
On the elimination of dominated strategies in stochastic models of evolution with large populations

A stochastic myopic best-reply dynamics is said to have property (W), for a given number of players n, if every pure weakly dominated strategy in every n-player game is eliminated in the long-run distribution of play induced by the dynamics. In this paper I give a necessary and sufficient condition that a dynamics has to satisfy in order for it to have property (W). The key determinant is found to be the sensitivity of the learning-rate to small payoff differences, inherent in the dynamics. If this sensitivity is higher than a certain cut-off, which depends on the number of players, then the dynamics satisfies property (W). If it is equal to or below that cut-off, then the dynamics does not satisfy property (W).
The One-Way Mirror: Law, Privacy, and the Media

Modern society is a celebrity society, and the essence of the celebrity is the illusion of familiarity. People observe the stars, including political stars, through the media, especially television, which acts as a kind of one-way mirror. The pervasiveness of the media has an impact on politics, among other things - it leads to a reduction of emphasis on ideology, which is replaced with an emphasis on personality and image. The crime of stalking is a pathology of a celebrity society. The illusion of familiarity leads to a sense of entitlement - a right to know everything about important personalities; and this is reflected in a decline in the right of privacy of those who are defined legally as public figures. For ordinary people, too, there is a one-way mirror: cameras in banks and public places, computer files, dossiers. The technology of intrusion seems to advance more rapidly than the technology of containment; and this may well be one of the most serious problems of coming years.
A Dual Self Model of Impulse Control

We propose that a simple "dual-self" model gives a unified explanation for several empirical regularities, including the apparent time inconsistency that has motivated models of quasi-hyperbolic discounting and Rabin’s paradox of risk aversion in the large and small. The model also implies that self-control costs imply excess delay, as in the O'Donoghue and Rabin models of quasi-hyperbolic utility, and it explains experimental evidence that increased cognitive load makes temptations harder to resist. The base version of our model is consistent with the Gul-Pesendorfer axioms, but we argue that these axioms must be relaxed to account for the effect of cognitive load.
Home production and wages: evidence from the American Time Use Survey

Using data from the American Time Use Survey for the years 2003–2006, this paper finds that housework has a negative relation with wages for both women and men. The negative relation between housework time and wages is not likely to arise from omitted working conditions that are correlated with housework, nor from omitted effort. For women, the negative relation between housework and wages appears in most occupations, including professional and managerial occupations. The connection of housework time to the ‘lack of interest’ argument proposed by defendants in class action sex discrimination cases is examined and is not supported by the evidence.
Defining Aggression: An Opportunity to Curtail the Criminal Activities of Non-State Actors

Part I of this article provides a background of the international laws governing conflicts, particularly those relating to Non-State Actors (NSAs). Part II criticizes the current international framework for conflict resolution. Specifically, Part II discusses why international law is too outdated to properly handle modern conflicts and how developments in international criminal law make it the best avenue for enforcing laws against NSAs. Part III focuses on the Rome Statute and particularly the 2010 review. Given that this review amended the Rome Statute to define the crime of aggression, this Note discusses the implications and shortcomings of this amendment. Lastly, Part IV argues that by passing a state-focused definition of aggression, the international community missed a critical opportunity to reign in the illegal activities of NSAs.
The high-z quasar Hubble Diagram

Two recent discoveries have made it possible for us to begin using high-z quasars as standard candles to construct a Hubble Diagram (HD) at z > 6. These are (1) the recognition from reverberation mapping that a relationship exists between the optical/UV luminosity and the distance of line-emitting gas from the central ionizing source. Thus, together with a measurement of the velocity of the line-emitting gas, e.g., via the width of BLR lines, such as Mg II, a single observation can therefore in principle provide a determination of the black hole's mass; and (2) the identification of quasar ULAS J1120+0641 at z = 7.085, which has significantly extended the redshift range of these sources, providing essential leverage when fitting theoretical luminosity distances to the data. In this paper, we use the observed fluxes and Mg II line-widths of these sources to show that one may reasonably test the predicted high-z distance versus redshift relationship, and we assemble a sample of 20 currently available high-z quasars for this exercise. We find a good match between theory and observations, suggesting that a more complete, high-quality survey may indeed eventually produce an HD to complement the highly-detailed study already underway (e.g., with Type Ia SNe, GRBs, and cosmic chronometers) at lower redshifts. With the modest sample we have here, we show that the Rh = ct Universe and ΛCDM both fit the data quite well, though the smaller number of free parameters in the former produces a more favorable outcome when we calculate likelihoods using the Akaike, Kullback, and Bayes Information Criteria. These three statistical tools result in similar probabilities, indicating that the Rh = ct Universe is more likely than ΛCDM to be correct, by a ratio of about 85% to 15%.
The Path of Robotics Law

This essay, written as a response to Ryan Calo's valuable discussion in "Robotics and the Lessons of Cyberlaw," describes key problems that robotics and artificial intelligence (AI) agents present for law.The first problem is how to distribute rights and responsibilities among human beings when non-human agents create benefits like artistic works or cause harms like physical injuries. The difficulty is caused by the fact that the behavior of robotic and AI systems is "emergent;" their actions may not be predictable in advance or constrained by human expectations about proper behavior. Moreover, the programming and algorithms used by robots and AI entities may be the work of many hands, and may employ generative technologies that allow innovation at multiple layers. These features of robotics and AI enhance unpredictability and diffusion of causal responsibility for what robots and AI agents do. Lawrence Lessig's famous dictum that "Code is Law" argued that combinations of computer hardware and software, like other modalities of regulation, could constrain and direct human behavior. Robotics and AI present the converse problem. Instead of code as a law that regulates humans, robotics and AI feature emergent behavior that escapes human planning and expectations. Code is lawless.The second problem raised by robotics and AI is the "substitution effect." People will substitute robots and AI agents for living things — and especially for humans. But they will do so only in certain ways and only for certain purposes. In other words, people tend to treat robots and AI agents as special-purpose animals or special-purpose human beings. This substitution is likely to be incomplete, contextual, unstable, and often opportunistic. People may treat the robot as a person (or animal) for some purposes and as an object for others. The problem of substitution touches many different areas of law, and it promises to confound us for a very long time.Finally, the essay responds to Calo's argument about the lessons of cyberlaw for robotics. Calo argues that lawyers should identify the "essential characteristics" of robotics and then ask how the law should respond to the problems posed by those essential characteristics. I see the lessons of cyberlaw quite differently. We should not think of essential characteristics of technology independent of how people use technology in their lives and in their social relations with others. Because the use of technology in social life evolves, and because people continually find new ways to employ technology for good or for ill, it may be unhelpful to freeze certain features of use at a particular moment and label them "essential characteristics." Innovation in technology is not just innovation of tools and techniques; it may also involve innovation of economic, social and legal relations. As we innovate socially and economically, what appears most salient and important about our technologies may also change.
Theoretical Traditions and the Modeling of Sexual Harassment within Organizations: The Military as Data

The purpose of this article is to examine issues of sexual harassment within the context of military organizations. Three theoretical traditions are brought together to explain the dynamics of sexual harassment. The organizational model (which emphasizes structure), the sociocultural model (which emphasizes the traditional sex role socialization of men and women), and the attraction model (which emphasizes the nature of men and women for relationship creation) are juxtaposed with literature-driven independent variables. The authors’ conclusion suggests that all models make a contribution to the understanding of sexual harassment. The article also suggests which behaviors organizations can be proactive about as well as those that are difficult to manage.
Rawlsian Fairness and Regime Choice in the Law of Accidents

Early in the 1970’s George Fletcher wrote a remarkable article Fairness and Utility in Tort Theory—connecting distinctively Rawlsian ideas of fairness with reciprocity of risk imposition. Fletcher argued that nonreciprocity of risk both characterized realms of strict liability in tort and justified those realms, whereas reciprocity of risk characterized realms of tort law which were governed by negligence liability, and appropriately so. This article argues (1) against Fletcher’s identification of fairness in the choice of an accident law regime with the presence or absence of reciprocity of risk, and (2) in favor of focusing on the fair distribution of the costs of accidental injury across those who benefit from the imposition of the underlying risks. Put differently, this paper argues that Rawlsian ideas support a powerful general case for preferring strict enterprise liability to negligence liability. Under the characteristic circumstances of modern life—where risk is the byproduct not of discrete acts but of organized activities –enterprise liability distributes the burdens of risky but mutually beneficial activity more fairly than negligence liability does.
Torah And Murder: The Cities of Refuge And Anglo-American Law

This article suggests important connections between the biblical and Anglo-American laws of murder. The first part describes the biblical law. The second part describes the development of the Anglo-American law with an eye towards how it reflects the biblical law. Three aspects of the law of murder figure prominently in this account: the mens rea sufficient to establish murder, the presumption of mens rea from actus reus, and the incidence of capital punishment. The Bible speaks to all three aspects, and repeatedly Anglo-American jurists have heard its voice.
Disclosure of status in an agency setting

Abstract We develop a model in which the principal and the agent share private information about the value of the agent for a multi-agent organization. The principal can disclose private information and make public the relative standing or status of all agents in the organization. We study whether it is better in terms of profit and utility to disclose or to not disclose status to the group of agents. Conditions for the optimality of disclosure versus non-disclosure are characterized for the cases of exogenous and endogenous human capital.
The Information Content of Accounting Reports: An Information Theory Perspective

Is it possible to quantify the information content of accounting reports? If possible, then how? This study examines accounting as a classical communication system with the purpose of providing a framework with which to approach these fundamentally important questions. Information theory was established in the early-mid 20th century to describe the properties of classical communication systems. Applying concepts from this theory to an accounting context provides insight into the questions asked above. Specifically, a measure of the information content of financial statement numbers is developed from these information theory concepts. The measure is also applied to several large companies’ earnings numbers and aids in predicting their price movements.
Predatory short selling

Financial institutions may be vulnerable to predatory short selling. When the stock of a financial institution is shorted aggressively, leverage constraints imposed by short-term creditors can force the institution to liquidate long-term investments at fire sale prices. For financial institutions that are sufficiently close to their leverage constraints, predatory short selling equilibria co-exist with no-liquidation equilibria (the vulnerability region), or may even be the unique equilibrium outcome (the doomed region). Increased coordination among short sellers expands the doomed region, where liquidation is the unique equilibrium. Our model provides a potential justification for temporary restrictions of short selling for vulnerable institutions and can be used to assess recent empirical evidence on short-sale bans.
Births, Deaths, and New Deal Relief during the Great Depression

OW well do social welfare programs mitigate the effect of economic disasters on demographic outcomes? To answer this question, this article examines the effect of New Deal relief programs on fertility, infant deaths, non-infant deaths, suicides, homicides, and other causes of death during the Great Depression. During the 1930s Americans experienced an economic disaster that lasted an entire decade, as unemployment rates peaked at well over 20% of the labor force and remained over 10% throughout. Sharp reductions in income and consequent inadequate access to nutrition, housing, and medical care put people of all ages at greater risk of death and disease. Economic problems potentially fueled social and psychological stresses that contributed to more suicides and homicides. Meanwhile, the greater uncertainty about the future led many couples to delay starting or adding to their families. To combat the Depression, the federal government expanded its social welfare spending in a dramatic and unprecedented fashion. In the early 1930s the burden of providing relief rested on state and local governments and private charitable organizations. The extraordinary unemployment eventually overwhelmed their resources, despite loans offered by President Hoover in late 1932. President Franklin Roosevelt’s New Deal revolutionized welfare spending both in the immediate and longer terms. The federal government poured resources into direct relief from 1933 to 1935 and emergency work relief from 1933 through 1942, leading to an immediate doubling and ultimately a
Newsgathering in Light of HIPAA

This short piece examines the interaction between the Health Insurance Portability and Accountability Act (HIPAA), a federal law designed to protect the privacy of individuals’ health information, and state Freedom of Information (FOI) laws, which are designed to ensure public access to government documents. It describes three recent cases from different states that addressed difficult issues about where and how to draw the line between the public’s right to know and individuals’ rights to keep their medical information secret. It concludes that questions about the interaction of state FOI laws and HIPAA should be guided by the framework suggested in HIPAA regulations for understanding the interaction between HIPAA and the federal Freedom of Information Act. State courts and agencies should therefore use the provisions in state FOI laws that regard medical privacy to inform decisions about information requests from citizens and the media.
Executive compensation and political sensitivity: Evidence from government contractors

Abstract Using federal contractor data, this paper examines the political costs hypothesis through the impact of government scrutiny and political sensitivity on executive compensation. The political cost hypothesis proffers that firms subject to government scrutiny take actions to deflect potential negative government reactions which can result in increased political costs for the firm. Results suggest that government contractor firms with the most political sensitivity (i.e., firms with government contracts that are most visible and comprise significant portions of their revenue) are associated with lower total (and excess) compensation to their CEOs, but with larger portions of cash, leading to lower long-term CEO wealth performance sensitivity. However, politically sensitive contractors with significant bargaining power (due to concentration, competition, or political contributions), are actually associated with greater excess compensation than other politically sensitive firms. These findings provide insight into the effects and limitations of additional government monitoring of executive compensation.
Oligarchic family control, social economic outcomes, and the quality of government

Wealthy families, as opposed to small public shareholders, characterize ownership of the large corporate sectors of many countries around the world. This paper shows that greater oligarchic family control over large corporations is associated with worse social economic outcomes. It also correlates with more bureaucratic and more interventionist governments, and less developed financial markets. Further tests show that red tape, price controls, and the lack of shareholder rights protection are the paramount factors relating to the extent of family control of large firms. These results are broadly consistent with Olson and others who argue that economically entrenched wealthy insiders pursue rent-seeking activities to preserve the status quo, and that this increases corruption, and impedes growth.
Return Generating Process and the Determinants of Term Premiums

Abstract This paper examines asset pricing theories for treasury bonds using longer maturities than previous studies and employing a simple multi-factor model. We allow bond factor loadings to vary over time according to term structure variables. The model examines not only the time variation in the expected returns of bonds but also their unexpected returns. This allows us to explicitly test some asset pricing restrictions which are difficult to study under existing frameworks. We confirm that the pure expectation theory of the term structure of interest rates is rejected by the data. Our empirical study of a two-factor model finds substantial evidence of time-varying term-premiums and factor loadings. The fact that factor loadings vary with long-term interest rates and yield spreads suggest that bond return volatilities are sensitive to interest rate levels.
Disaster Exercise Outcomes for Professional Emergency Personnel and Citizen Volunteers

It has long been argued in the research literature that conducting disaster exercises produces a variety of benefits that promote effective emergency management. In spite of nearly universal acceptance of the claim, there are few empirical studies that have explored the effects of exercises on participants. This paper reviews the role of exercises in the creation of community disaster preparedness, while making explicit the links among planning, training and exercising. Using a quasi-experimental design, the effects of disaster exercise participation on perceptions of response knowledge and teamwork are studied for police officers, fire-fighters and civilian volunteers. The exercise studied involved an annual airport disaster drill required for continuing certification. It was found that participation enhanced the perceptions of response knowledge and teamwork for all three types of participants.
A dual form of the sharp Nash inequality and its weighted generalization

The well known duality between the Sobolev inequality and the Hardy-Littlewood-Sobolev inequality suggests that the Nash inequality could also have an interesting dual form, even though the Nash inequality relates three norms instead of two. We provide such a dual form here with sharp constants. This dual inequality relates the $L^2$ norm to the infimal convolution of the $L^\infty $ and $H^{-1}$ norms. The computation of this infimal convolution is a minimization problem, which we solve explicitly, thus providing a new proof of the sharp Nash inequality itself. This proof, via duality, also yields the sharp form of some new, weighted generalizations of the Nash inequality as well as the dual of these weighted variants.
Reference-Dependence Effects in Benefit Assessment: Beyond the WTA–WTP Dichotomy and WTA–WTP Ratios

Willingness-to-pay (WTP) values and willingness-to-accept (WTA) values have received considerable attention, but the role of reference-dependence effects is more diverse. Policies involving cost and risk may have reference point effects with respect to both cost and risk, leading to four potential valuation measures. Experimental evidence for water quality policies suggests that the cost reference effects are particularly influential in that context. There is, however, no evidence of significant reference effects for labor market estimates of the value of a statistical life. Sound application of benefit values other than WTP measures requires pertinent empirical evidence and an assessment of the underlying rationality of the determinants of the reference-dependence effects.
The Impact of Immigration on the Educational Attainment of Natives

Using a state panel from 1940–2010, I examine the impact of immigration on the high school completion of natives in the United States. Immigrant children could influence native children's educational experience as well as their expected future labor market. I find evidence for both channels and a positive net effect. An increase of one percentage point in the share of immigrants in the population aged 11–64 increases the probability that natives aged 11–17 eventually complete 12 years of schooling by 0.3 percentage point. I account for the endogeneity of immigrant flows by using instruments based on 1940 settlement patterns.
Matching Contributions and the Voluntary Provision of a Pure Public Good: Experimental Evidence

Abstract Laboratory experiments are used to study the voluntary provision of a pure public good in the presence of an anonymous external donor. The external funds are used in two different settings, lump-sum matching and one-to-one matching, to examine how allocations to the public good are affected. The experimental results reveal that allocations to the public good under lump-sum matching are significantly higher and have significantly lower within-group dispersion relative to one-to-one matching and two baseline settings without external matching funds. In addition, a comparison of the two baseline conditions reveals a positive framing effect on public goods allocations when it is explicitly revealed to subjects that an outside source has made an unconditional allocation to the public good.
Indeterminacy and sector-specific externalities

Abstract We introduce mild increasing returns-to-scale into a version of the Real Business Cycle model. These increasing returns-to-scale occur as a consequence of sector-specific externalities, that is externalities where the output of the consumption and investment sectors have external effects on the output of firms within their own sector. Keeping the production technologies for both sectors identical for expositional simplicity, we show that indeterminacy can easily occur for parameter values typically used in the real business cycle literature, and in contrast to some earlier literature on indeterminacies, for externalities mild enough so that labor demand curves are downward-sloping.
Voting from the Pew: The Effect of Senators' Religious Identities on Partisan Polarization in the U.S. Senate

Partisan polarization in the Senate is in part a product of the increased sorting of evangelical Christians into the Republican caucus. The relationship between senators' religious identities, party affiliation, and ideology has changed since the 1970s. Whereas congressional party caucuses in the past were more diverse in their religious composition, evangelical Christian senators have sorted themselves into the party that most closely resembles the values of their religious identities, leading to greater overall polarization.
Green Expectations: Current Effects of Anticipated Carbon Pricing

I report evidence that an anticipated strengthening of environmental policy increased emissions. I find that the breakdown of the U.S. Senate's 2010 climate effort generated positive excess returns...
The value of life: Estimates with risks by occupation and industry

The worker fatality risk variable constructed for this article uses BLS data on total worker deaths by both occupation and industry over the 1992-97 period rather than death risks by occupation or industry alone, as in past studies. The subsequent estimates using 1997 CPS data indicate a value of life of $4.7 million for the full sample, $7.0 million for blue-collar males, and $8.5 million for blue-collar females. Unlike previous estimates, these values account for the influence of clustering of the job risk variable and compensating differentials for both workers' compensation and nonfatal job risks.
Facts Do Matter: A Reply to Bagenstos

Before the ink had dried on our critical assessment of new empirical research on implicit bias, 1 Professor Samuel Bagenstos had critiqued our critique. 2 Unfortunately, Bagenstos resorted to an old rhetorical gambit: refute a caricature of an opponent’s position rather than the real thing. If Bagenstos were to be believed, we took the position that the “the law should prohibit only discrimination that results from self-conscious, irrational animus” 3 and that “rational discrimination is not a proper target of antidiscrimination law.” 4 Having attributed this extreme position to us, it is no wonder that Bagenstos concludes that our arguments will “resonate strongly” with those who believe “antidiscrimination law should aim solely at punishing individuals who act on irrational racist and sexist animus” but “will be far less relevant” to those who see discrimination as “a social problem that entrenches the subordinated and disadvantaged status of particular, socially salient groups.” 5
THE PROCEDURE OF ELECTION LAW IN FEDERAL COURTS

Much attention is paid to the substantive outcomes of election law decisions. But little scholarship focuses on the mechanisms by which election law cases traverse the federal courts. This article fills that void. The article first identifies the goals Congress should try to achieve in creating special procedures for election law cases. Congress has deemed election law cases to be particularly important given the foundational issues at stake in resolving election law disputes. Accordingly, the legislature has created various procedural mechanisms to shepherd these cases through the federal courts. What goals should underlie these processes? Based on the importance of election law cases to the foundation of our representative government and the history of judicial involvement in elections, election law court procedures should try to achieve the following goals: timeliness, accuracy, legitimacy, minimization of ideology, maximization of each judge’s skills, and signaling of the importance of election law cases to our democratic order. Although these goals may certainly be laudable for all cases, they are particularly important to elevate in the election arena given the high stakes involved and the importance of fair elections to the functioning of our democracy. Next, the article dissects the three ways federal courts hear election law cases. First, a case can follow the “traditional” three-tiered path, starting with a single district judge, with direct appeal to a three-judge panel of the court of appeals and discretionary en banc or Supreme Court review. Second, certain cases start with a three-judge panel of the district court, which is comprised of two district judges and one circuit court judge, with direct mandatory appeal to the Supreme Court. Third, in a minority of election law cases, a dispute originates with a single district judge, who certifies nonfrivolous constitutional questions to the en banc circuit court, with certiorari review at the Supreme Court. The article explores each of these mechanisms, highlighting the intended and unintended consequences of each system. In particular, the article evaluates whether each process meets the six goals for federal court involvement in election law cases. The article concludes by proposing, for all election law cases, a procedure that elevates these ideals: a modified form of the en banc certification process used in some federal court cases (which I term modified direct en banc review). This system best achieves the important goals identified earlier in the paper and streamlines federal court involvement in elections.
The Arbitrator as Agent: Why Deferential Review Is Not Always Pro-arbitration

Arbitration supplements the judicial system, it is often said, by providing relatively cheap, speedy, and expert decisionmaking.1 But arbitrators are not generalist judges, and so typically are not as expert in the law. They are thus prone to make mistakes, or at least presumptively more prone to do so than judges. A legal system, like that of the United States, that has a policy of supporting arbitral dispute resolution must decide on a level of scrutiny to apply to arbitral interpretations of law when they are challenged before courts. The modern trend is to choose a fairly deferential level of review: most arbitration statutes2 and the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards3 do not allow judicial review for errors of law. Only particularly egregious arbitral errors lead to the setting aside or nonenforcement of an award. The overall policy of fairly deferential review of arbitral awards, like all standards of review, is calibrated to optimize the benefits of the arbitration regime, and is usually seen as being pro-arbitration.4 The basic issues of institutional design here are familiar across many areas of law, whenever superior decisionmakers discipline primary decisionmakers, such as factfinders, administrative agencies, or lower courts. Review by a second decisionmaker provides substantial benefits, minimizing error costs and heightening uniformity across cases. But it introduces other costs, such as procedural delay and the shifting of power to decisionmakers who are more distant from the primary inquiry. On a spectrum of possible alternative regimes, ranging from de novo review to complete nonreviewability, any particular point
Inventory systems with stochastic demand and supply: Properties and approximations

We model a retailer whose supplier is subject to complete supply disruptions. We combine discrete-event uncertainty (disruptions) and continuous sources of uncertainty (stochastic demand or supply yield), which have different impacts on optimal inventory settings. This prevents optimal solutions from being found in closed form. We develop a closed-form approximate solution by focusing on a single stochastic period of demand or yield. We show how the familiar newsboy fractile is a critical trade-off in these systems, since the optimal base-stock policies balance inventory holding costs with the risk of shortage costs generated by a disruption.
Modeling uncertainty in macroeconomic growth determinants using Gaussian graphical models

Model uncertainty has become a central focus of policy discussion surrounding the determinants of economic growth. Over 140 regressors have been employed in growth empirics due to the proliferation of several new growth theories in the past two decades. Recently Bayesian model averaging (BMA) has been employed to address model uncertainty and to provide clear policy implications by identifying robust growth determinants. The BMA approaches were, however, limited to linear regression models that abstract from possible dependencies embedded in the covariance structures of growth determinants. The recent empirical growth literature has developed jointness measures to highlight such dependencies. We address model uncertainty and covariate dependencies in a comprehensive Bayesian framework that allows for structural learning in linear regressions and Gaussian graphical models. A common prior specification across the entire comprehensive framework provides consistency. Gaussian graphical models allow for a principled analysis of dependency structures, which allows us to generate a much more parsimonious set of fundamental growth determinants. Our empirics are based on a prominent growth dataset with 41 potential economic factors that has been utilized in numerous previous analyses to account for model uncertainty as well as jointness.
Optimal incentives and the time dimension of performance measurement

Abstract I study optimal incentive contracting in a two-period model in which an agentʼs action generates an output with delay, and a noisy signal of output early. Under very general conditions, the optimal contract depends on the early signal as well as on output even if the signal is uninformative of effort, given output, and even if the agent has access to credit. An important characteristic of any performance measure, therefore, is the time at which it is generated. The results shed light on the use of forward-looking performance measures such as stock returns or earnings with accruals for accounts receivable.
Compensating Market Value Losses: Rethinking the Theory of Damages in a Market Economy

The BP Gulf oil spill and the Toyota car recalls have highlighted an important legal anomaly that has been overlooked by scholars—judicial inconsistency and confusion in ruling whether to compensate for the loss in market value of wrongfully affected property. This article seeks to understand the anomaly and, in the process, build a stronger foundation for enabling courts to decide when—and in what amounts—to award damages for market value losses. To that end, the article analyzes the normative rationales for generally awarding damages, adapting those rationales to derive a theory of damages that not only covers market value losses of financial securities (like bonds and stock) but also of ordinary products (like automobiles and lightbulbs). INTRODUCTION 2 I. JUDICIAL PRECEDENTS 5 A. Financial-Market Securities 5 B. Ordinary Products 8 II. TOWARDS A NORMATIVE THEORY OF DAMAGES FOR MARKET VALUE LOSS........ 9 1 Copyright © 2011 by Steven L. Schwarcz. 2 Stanley A. Star Professor of Law & Business, Duke University School of Law; Founding/Co-Academic Director, Duke Global Capital Markets Center; Leverhulme Visiting Professor of Law, University of Oxford. E-mail: schwarcz@law.duke.edu. I thank Andrew Burrows, George Christie, James Edelman, Mark Grady, participants in a law and finance workshop at the University of Oxford Faculty of Law, and especially Francis McGovern for valuable comments, and Arman Tasheneff, Taylor Warner, Samuel de Villiers, and Matthias Mueller for excellent research assistance.
The Social Construction of the Market

Although Berger and Luckmann do not specifically discuss the market, they would undoubtedly agree that the market is socially constructed. Indeed, the market is a product of social action that has an objective and subjective reality. Inspired by Berger and Luckmann’s work, this paper will describe the social construction of the market. Specifically, it will focus on the Austrian understanding of the market. It is my contention that the Austrians have articulated a “sociology of the market” that is consistent with Berger and Luckmann’s approach.
U.S. monetary policy in disarray

Abstract Monetary policy became more difficult to characterize during and after the mortgage foreclose and financial crises because of a shift to a new credit policy focused on private sector credit and that relies on traditional commercial banking strategies. The new credit policy broke the tight link that had existed between Fed credit and its effective monetary base, the monetary base that affects monetary aggregates. The Fed has adopted an exit strategy, but the discretionary powers that it followed remain in place as does a mistaken policy on the payment of interest on excess reserves.
Learning to Learn: Undoing the Gordian Knot of Development Today

The authors, specialists in development, argue that what they call dirigisme—an a priori set of requirements for economic development—has led to the preeminence of the strong and the exclusion of the weak. They advocate a learning-centered approach to development, which in turn emphasizes the contributions of both demand and supply to economic development.
Bringing ethics into focus: How regulatory focus and risk preferences influence (Un)ethical behavior

Abstract In four laboratory studies, we find that regulatory focus induced by situational cues (such as the framing of an unrelated task) or primed influences people’s likelihood to cross ethical boundaries. A promotion focus leads individuals to be more likely to act unethically than a prevention focus (Studies 1, 2, and 3). These higher levels of dishonesty are explained by the influence of a person’s induced regulatory focus on his or her behavior toward risk. A promotion focus leads to risk-seeking behaviors, while a prevention focus leads to risk avoidance (Study 3). Through higher levels of dishonesty, promotion focus also results in higher levels of virtuous behavior (Studies 2 and 3), thus providing evidence for compensatory ethics. Our results also demonstrate that the framing of ethics (e.g., through an organization’s ethics code) influences individuals’ ethical behavior and does so differently depending on an individual’s induced regulatory focus (Study 4).