cssi/SciSciGPT-SciSciNet huggingface dataset:
Pricing Discrete Barrier Options with an Adaptive Mesh Model

The binomial option pricing model and the trinomial model, its more versatile relative, are invaluable tools for pricing complex derivatives, especially those with American exercise. But while these models converge to the correct option values as the time and price step sizes go to zero, for certain kinds of problems getting close enough may require a very large amount of calculation. The cause is often non-linearity or discontinuity in the option payoff that occurs only in a small region. One example is a barrier option with a barrier that is only monitored at discrete intervals. This article describes how to solve the discrete barrier problem with an adaptive mesh model, a general approach to lattice building that constructs smell sections of fine high-resolution mesh in the critical areas and then grafts them onto a base lattice with coarser time and price steps elsewhere. The technique achieves an increase in accuracy that is quite remarkable.
Beyond Black–Litterman: Letting the Data Speak

The Black–Litterman model is a popular approach to asset allocation that blends an investor’s proprietary views with the views of the market. The model ignores, however, the data-generating process, whose dynamics can significantly impact future portfolio returns. In this article, Zhou extends the Black–Litterman model to allow Bayesian learning to exploit all available information—market views, proprietary investor views, and the data. The framework allows practitioners to combine insights from the Black–Litterman model with the data to generate potentially more reliable trading strategies and more robust portfolios. Further, the author demonstrates that many Bayesian learning tools can be readily applied to practical portfolio selections in conjunction with the Black–Litterman model.
A Macroprudential Approach to Financial Regulation

Many observers have argued that the regulatory framework in place prior to the global financial crisis was deficient because it was largely "microprudential" in nature. A microprudential approach is one in which regulation is partial equilibrium in its conception and aimed at preventing the costly failure of individual financial institutions. By contrast, a "macroprudential" approach recognizes the importance of general equilibrium effects, and seeks to safeguard the financial system as a whole. In the aftermath of the crisis, there seems to be agreement among both academics and policymakers that financial regulation needs to move in a macroprudential direction. In this paper, we offer a detailed vision for how a macroprudential regime might be designed. Our prescriptions follow from a specific theory of how modern financial crises unfold and why both an unregulated financial system, as well as one based on capital rules that only apply to traditional banks, is likely to be fragile. We begin by identifying the key market failures at work: why individual financial firms, acting in their own interests, deviate from what a social planner would have them do. Next, we discuss a number of concrete steps to remedy these market failures. We conclude the paper by comparing our proposals to recent regulatory reforms in the United States and to proposed global banking reforms.
The clinical use of palmtop computers in the treatment of generalized anxiety disorder

This paper describes an innovative palmtop computer program that was developed to be used in conjunction with cognitive behavioral therapy (CBT) for generalized anxiety disorder. The computer program includes a self-monitoring component, as well as three distinct therapeutic modules (i.e., relaxation, cognitive restructuring, and imaginal exposure). It is suggested that the use of such a computer program may increase the effectiveness of CBT by facilitating self-monitoring as well as the practice and application of therapeutic skills between sessions.
Confidence Schemes: Theft Loss Deductions, Restitution, and Public Policy

May courts legitimately impose their public policy views to override statutory commands? This article focuses on some of these problems in the field of federal income tax. Part I of the article focuses on theft losses suffered by confidence-scheme victims who thought they would profit from counterfeiting or other illegal activity. Courts usually disallow these deductions so as to discourage illegal activity. This article criticizes this rationale and offers a better one. It suggests that a tax deduction would be contrary to state policy in those situations where states in effect penalize victims by denying them restitution from the thieves. Part II discusses the cases that have denied deductions for fines and civil penalties and explores how these apply to the denial of restitution. Part III assesses the wisdom of disallowing deductions in these cases and suggests that it would make more sense for society to punish the wrongdoer solely in the criminal courts and to allow the would-be counterfeiter a theft loss deduction.
Structural Reforms in Latin America under Scrutiny

El futuro de las reformas estructurales en America Latina esta en discusion. El objeto de este documento es resumir los hechos y las opiniones subyacentes de este debate. La primera parte muestra que si bien el proceso de reforma no se ha detenido del todo, si ha sido incompleto y desigual, tanto entre paises como entre las diversas areas de reforma. Los mayores avances se han registrado en la reforma de los sectores del comercio internacional y las finanzas. En terminos de reforma tributaria y privatizacion, los resultados de un pais a otro son encontrados. Los avances mas pequenos se han registrado en el area de la reforma del codigo laboral. En la segunda parte se analiza la situacion de la opinion publica sobre el proceso de reforma. La desilusion con las reformas ha venido en aumento, especialmente entre la clase media. Mas que reflejar inquietudes sobre el estado de la economia o el grado de avance de las reformas, esta critica tiene que ver con la corrupcion que ha empanado el proceso de privatizacion en algunos paises. En la tercera seccion se pasa revista a los efectos de las reformas. Sus repercusiones en el crecimiento parecen haber sido positivas, aunque pasajeras, pero sus efectos en el empleo y la distribucion del ingreso han variado en diversas areas de la reforma y segun el contexto especifico de cada pais. En particular, la eficacia de las reformas ha dependido en gran medida de la calidad de las instituciones publicas. En la cuarta parte se presenta una sintesis de las principales propuestas para ampliar o reorientar el programa de reformas en la region. Un conjunto de propuestas sugiere ampliar el Consenso de Washington con politicas mas activas, destinadas a acometer la necesidad de mayor estabilidad economica, integracion social y una distribucion equitativa del ingreso. Otro conjunto de propuestas, guiado por un punto de vista mas amplio de los objetivos del desarrollo, hace hincapie en la interaccion entre la sociedad civil, el sector privado y el gobierno. Por ultimo, una vision mas radical propone una nueva estructura nacional e internacional de las instituciones, a fin de limitar el papel de los mercados y atenuar los efectos de la globalizacion.
The Impact of Performance Management on Performance in Public Organizations: A Meta‐Analysis

Performance-based management is pervasive in public organizations; countless governments have implemented performance management systems with the hope that they will improve organizational effectiveness. However, there has been little comprehensive review of their impact. This article conducts a meta-analysis on the impact of performance management on performance in public organizations. It contributes to the current literature in three ways. First, it examines the effect of the “average” performance management system. Second, it examines the influence of management: whether beneficial performance management practices moderate the average effect. Third, it examines the effect of “time” on performance management. Using 2,188 effects from 49 studies, the analysis finds that performance management has a small average effect. However, the effect is substantially larger when indicators of best practices in high-quality studies are included, indicating that management practices have an important impact on the effectiveness of performance management systems. Evidence for the effect of time is mixed.
School Admissions Reform in Chicago and England: Comparing Mechanisms by their Vulnerability to Manipulation

In Fall 2009, ocials from Chicago Public Schools changed their assignment mechanism for coveted spots at selective college preparatory high schools midstream. After asking about 14,000 applicants to submit their preferences for schools under one mechanism, the district asked them re-submit their preferences under a new mechanism. Ocials were concerned that \high-scoring kids were being rejected simply because of the order in which they listed their college prep preferences" under the abandoned mechanism. What is somewhat puzzling is that the new mechanism is also manipulable. This paper introduces a method to compare mechanisms based on their vulnerability to manipulation. Under our notion, the old mechanism is more manipulable than the new Chicago mechanism. Indeed, the old Chicago mechanism is at least as manipulable as any other plausible mechanism. A number of similar transitions between mechanisms took place in England after the widely popular Boston mechanism was ruled illegal in 2007. Our approach provides support for these and other recent policy changes involving matching mechanisms.
On Second Thought: Post-acquisition Housing Discrimination In Light Of Bloch V. Frischholz

For almost forty years, courts nationwide extended the protections of the Fair Housing Act to homeowners and home seekers alike. However, in 2004, the Seventh Circuit pushed aside decades of precedent when it decided Halprin v. Prairie Single Family Homes of Dearborn Park Ass’n and held that discrimination occurring after the purchase or rental of a dwelling is not actionable under the Fair Housing Act. The decision opened up a circuit court split, and its aftermath dismayed fair housing advocates. Relying on Halprin, district courts and one other federal appellate court swiftly dismissed cases from homeowners and tenants claiming post-acquisition discrimination.The Seventh Circuit Court of Appeals adhered to Halprin when it decided Bloch v. Frischholz. In Bloch, the court held that harassment of a Jewish family by their condominium association did not give rise to a cause of action under the Fair Housing Act because the conflict occurred after the Blochs purchased their units. However, on rehearing en banc, the Seventh Circuit changed course, reversing the earlier decision and partially overruling Halprin. In the en banc opinion, the court declared that the Fair Housing Act can indeed reach post-acquisition discrimination. This note argues that the Fair Housing Act’s protections should cover pre- and post-acquisition discrimination alike. It provides an examination of the Fair Housing Act as it relates to post-acquisition discrimination and an analysis of case law on the issue. Part II examines the history and purpose of the Fair Housing Act. Part III sets forth the relevant Fair Housing Act provisions. Parts IV–V summarize pre-Halprin case law and the Halprin decision. Part VI explores the aftermath of Halprin. Part VII details the Bloch I–II decisions. Finally, Part VIII analyzes whether the Bloch II decision will repair the damage done by Halprin, concluding that further action from Congress or the Supreme Court is necessary to fully secure fair housing rights.
Collusion to Control a Powerful Customer: Amazon, E-Books, and Antitrust Policy

A federal judge recently held that Apple violated antitrust law by conspiring with leading publishers to raise e-book prices. While the Justice Department characterized the case as routine, many commenters argued it should not have been brought. In their view, the real villain was Amazon, whose power and aggressive behavior threatened to create a monopoly, reduce consumer choice, and diminish the vitality of book publishing. In the face of such a powerful customer, the publishers should have been allowed to collude. This article addresses that issue, in the e-books case and in general. In the e-books case, collusion was almost certainly unwarranted. Amazon appeared to be engaged in loss leading, not predatory pricing, and fears of an eventual Amazon monopoly were largely unfounded. Amazon’s buyer power, moreover, was not monopsony power, which is frequently harmful, but countervailing power, which can lead to lower consumer prices. There was no evidence it had caused a reduction in the variety of new books.In some circumstances, however, collusion to control a powerful customer would be justified. This article identifies the most important situations and develops a defense to the per se rule to protect them. While the defense would rarely be satisfied, when it is, it would provide a remedy for anticompetitive buyer power that would otherwise persist.
Topics In Finance Part V - Capital Structure

Continuing this series on the theory of financial management, the current article investigates capital structure, offering insight into the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts. Much literature addresses this topic, and some of the most recent literature challenges certain theoretical cornerstones touted in the textbooks, as revealed in this work.
Iredell Reclaimed: Farewell to Snowiss's History of Judicial Review

Even after the publication of Larry Kramer's The People Themselves, the early history of judicial review suffers from the unfortunate influence of Sylvia Snowiss's Judicial Review and the Law of the Constitution. Snowiss misread, among other things, James Iredell's foundational argument in 1786 for the inevitability and necessity of judicial review. Snowiss claimed that early understandings of judicial review conceptualized it not as a legal doctrine but as a doctrine of political and revolutionary resistance. In fact, however, Iredell argued for judicial review as a straightforward, legalistic consequence of popular sovereignty. In Iredell's influential account, the transition from the British theory of legislative sovereignty to the American theory of popular sovereignty also brought a shift in the relations between legislative and judicial power (the separation of powers). The central implication for the courts was that they could no longer hide behind legislative authority. The judges now had to ensure their own authority to act by reference to the people's constitutions, lest they themselves illegally coerce the citizenry. Moreover, there was nothing in such a theory to suggest deference to the legislature when doing constitutional interpretation (Snowiss's doubtful case rule). When such a rule was embraced by Iredell and others, it seems not to have been a corollary of Snowiss's theory of early judicial review at all. Rather, it appears to have been a pragmatic concession to those who continued to resist Iredell's lawyerly logic.
A new era of voluntary disclosure? Empirical evidence on how employee postings on social media relate to future corporate disclosures

Abstract With the advent of social media, individual public opinions about firms can be more easily accessed and aggregated, and recent research suggests that various platforms, such as Twitter, Seeking Alpha, and Estimize, provide information relevant in predicting future corporate disclosures. Rather than focusing on the general public's opinion, we examine a public platform designed to convey insider information - Glassdoor.com, where employees voluntarily share their opinions on a number of issues, including the company's near-term business outlook. Using a sample of approximately 150,000 employee reviews, we extract both employees' explicit assessments of outlook and a measure of their latent outlook derived from factor analysis. We then examine whether the opinions employees share on social media relate to future corporate disclosures. In particular, we find evidence that employee opinions are useful in predicting growth in key income statement information, transitory reporting items (e.g., restructuring charges), earnings surprises, and management forecast news. While voluntary disclosures about firm performance have traditionally come from executives, our evidence suggests that rank-and-file employees are chipping away at upper-level management's exclusive control over that channel.
A Third Liberal Theory of Secession

While I agree with Birch that the four cases he cites are cases that justify secession, I disagree that these are the only cases. In fact, I disagree with his approach that there can ever be a case where secession is not justified. If a group of individuals would rather be a part of a different political entity than the one to which they are currently a part, they have an inalienable right to form a political entity that is more to their liking, or to join with an already existing political entity. It is not a matter of permission. It is a matter of right. And there is no theoretical reason why the size of the seceding group cannot be as small as a single individual, although there may be some technical difficulties involved when the entity seceding is this small.
Visitor classification, vehicle breakdowns, and the provision of transport for tourism

For a firm that provides transport to tourists/visitors and operates in a probabilistic environment, the twin issues of visitor classification and vehicle breakdowns have received scant attention in the extant literature. Therefore, we conduct a stochastic analysis of these two issues in this paper. We first describe a general model that accounts for the common features of sightseeing trips to city attractions and to locations such as lakes and parks. Second, for a given time interval, we provide a way of classifying the randomly arriving tourists and hence we shed light on the demand for our firm’s offered tours. Finally, for the above time interval, we ascertain the mean and the variance of the number of vehicles that are not in service due to breakdowns and thus we shed light on the ability of our firm to supply transport to tourists for the various tours being offered.
CONSUMERS AND THEIR BRANDS : DEVELOPING RELATIONSHIP THEORY IN CONSUMER RESEARCH

Although the relationship metaphor dominates contemporary marketing thought and practice, surprisingly little empirical work has been conducted on relational phenomena in the consumer products domain, particularly at the level of the brand. In this article, the author: (1) argues for the validity of the relationship proposition in the consumer-brand context, including a debate as to the legitimacy of the brand as an active relationship partner and empirical support for the phenomenological significance of consumer-brand bonds; (2) provides a framework for characterizing and better understanding the types of relationships consumers form with brands; and (3) inducts from the data the concept of brand relationship quality, a diagnostic tool for conceptualizing and evaluating relationship strength. Three in-depth case studies inform this agenda, their interpretation guided by an integrative review of the literature on person-to-person relationships. Insights offered through application of inducted concepts to two relevant research domains—brand loyalty and brand personality—are advanced in closing. The exercise is intended to urge fellow researchers to refine, test, and augment the working hypotheses suggested herein and to progress toward these goals with confidence in the validity of the relationship premise at the level of consumers' lived experiences with their brands.
Trade and… Problems, Cost-Benefit Analysis and Subsidiarity

This article analyses the conflict between trade values and other values ('trade and ... problems'), such as environmental protection, labour rights or free competition, as It Is addressed by the principal legal devices available to address such conflicts ('trade-off devices') In the dispute resolution context In the European Union, the GATT/World Trade Organization system and In the United States federal system. These trade-off devices Include anti-discrimination rules, simple means-ends rationality tests, least trade restrictive alternative tests, proportionality tests, balancing tests and cost-benefit analysis. A separate cost-benefit analysis methodology Is developed to choose among these devices In particular circumstances. From the simple standpoint of maximization of the sum of benefits of trade and of regulation, cost-benefit analysis would, tautologically, be selected. However, full cost-benefit analysis is nowhere In use as a trade-off device. This paper begins to explain this apparent paradox by suggesting reasons, including administrative, distributive, moral and theoretical concerns, why this approach Is not applied. It then explores these reasons In order to evaluate retreats from full cost-benefit analysis to the trade-off devices actually in use. Finally, the author seeks to comprehend these trade-off devices as determinants of the allocation of regulatory jurisdiction between central and component governments: of
Counterclaims, the Well-Pleaded Complaint, and Federal Jurisdiction

The United States Supreme Court recently decided, in Holmes Group, Inc. v. Vornado Circulation Systems, Inc., that the United States Court of Appeals for the Federal Circuit’s exclusive appellate jurisdiction over a case could not rest solely on a counterclaim for patent infringement. This decision represented a significant departure from over ten years of established Federal Circuit patent law jurisprudence confirming that even if the only patent claim present in a case was a counterclaim, the Federal Circuit still had appellate jurisdiction. Federal Circuit jurisdiction over such cases made sense, considering that the Federal Circuit was created by Congress to be the exclusive venue for patent appeals. In reaction to the Supreme Court’s decision in Holmes,
The reliability and validity of the panic disorder self-report: A new diagnostic screening measure of panic disorder

This study examined the Panic Disorder Self-Report (PDSR), a new self-report diagnostic measure of panic disorder based on the 4th edition of the Diagnostic and Statistical Manual of Mental Disorders (American Psychiatric Association, 1994). PDSR diagnoses were compared with structured interview diagnoses of individuals with generalized anxiety disorder, social phobia, and panic disorder and nonanxious controls. Receiver operating characteristic analyses revealed that the PDSR showed 100% specificity and 89% sensitivity. The PDSR also demonstrated retest reliability, convergent and discriminant validity, and kappa agreement of .93 with a structured interview. Finally, the PDSR demonstrated clinical validity. Students who were identified as having panic disorder using the PDSR did not have significantly different scores on the Panic Disorder Severity Scale--Self-Report form (P. R. Houck, D. A. Speigel, M. K. Shear, & P. Rucci, 2002) than a panic disordered community sample. However, both groups had significantly higher scores than students identified as not meeting criteria for panic disorder.
On Optimal Instrumental Variables Estimation of Stationary Time Series Models

In many time series models, an infinite number of moments can be used for estimation in a large sample. I supply a technically undemanding proof of a condition for optimal instrumental variables use of such moments in a parametric model. I also illustrate application of the condition in estimation of a linear model with a disturbance that is serially uncorrelated and conditionally heteroskedastic.
Revealing the rapist next door: Property impacts of a sex offender registry

Abstract How do homebuyers respond to perceived crime risks about sex offenders in the neighborhood? I evaluate local property and crime responses to Internet sex offender registry listings. Among more permanent listings, a nearby offender depresses house prices by up to 4 percentage points. I document that the majority of registered sex offenders are transient, with durations of less than 6 months at an address. While a growing literature suggests that housing stability is important in reducing criminal behavior, the market perceives heightened crime risks to be attached to the listings of registered offenders with more stable housing, but not to those who are transient or who have moved away. Prices correspond more strongly to long-term offender locations than to locations of actual sex crimes. I find small, localized reductions in rapes involving weapons within 0.1 mi of offender addresses and increases in sex crimes farther away.
The meaning of success: network position and the social construction of project outcomes in an R&D lab

Abstract We analyze the social networks of project managers in an R&D lab of a Fortune 500 company to investigate how the extent and type of centrality shapes managers’ perceptions of the success or failure of six technologically innovative projects. Managers asymmetrically discuss success more than failure, and the type of centrality they have influences how they talk about success. Interpretive flexibility in the meaning of success occurs among more central managers who have access to more information through their network ties. Not only do social ties affect information access, but also shape managers’ perspectives on the outcomes of innovative projects.
Rethinking International Insolvency: The Neglected Role of Choice-of-Law Rules and Theory

Solutions to the problem of international bankruptcy are generally framed as either universalist (arguing that international bankruptcies should be administered in a single forum) or territorialist (arguing in favor of multiple local bankruptcies). This article seeks to expand this debate by using traditional conflicts theory to examine the problem of cross-border bankruptcy. It analyzes the current regime under which cross-border bankruptcies are administered in U.S. courts, concluding that this regime operates as a multilateralist (jurisdiction-selecting) regime. Concluding that multilateralism is an appropriate method for resolving choice-of-law issues in international insolvency, the article analyzes some possible refinements to the current system. It argues that a more pointedly multilateralist approach would better serve the goals of the international bankruptcy regime.
Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge

AbstractWe use the Business Roundtable’s challenge to the Securities and Exchange Commission’s (SEC’s) 2010 proxy access rule as a natural experiment to measure the value of shareholder proxy access. We find that firms that would have been most vulnerable to proxy access, as measured by institutional ownership and activist institutional ownership, lost value on October 4, 2010, when the SEC unexpectedly announced that it would delay implementation of the rule in response to the Business Roundtable’s challenge. We examine intraday returns and find that the loss of value occurred just after the SEC’s announcement on October 4. We find similar results for July 22, 2011, when the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of the Business Roundtable. These findings are consistent with the view that financial markets placed a positive value on shareholder access, as implemented in the SEC’s 2010 rule.
Orphan Works As Grist for the Data Mill

The phenomenon of library digitization in general, and the digitization of so-called “orphan works” in particular, raises many important copyright law questions. However, as this Article explains, correctly understood, there is no orphan works problem for certain kinds of library digitization. The distinction between expressive and non-expressive works is already well recognized in copyright law as the gatekeeper to copyright protection—novels are protected by copyright, while telephone books and other uncreative compilations of data are not. The same distinction should generally be made in relation to potential acts of infringement. Preserving the functional force of the idea-expression distinction in the digital context requires that copying for purely non-expressive purposes (also referred to as nonconsumptive use), such as the automated extraction of data, should not be regarded as infringing. The non-expressive use of copyrighted works has tremendous potential social value by making search engines possible, and by providing an important data source for research in computational linguistics, automated translation, and natural language processing. Furthermore, the macro-analysis of text is being increasingly used in fields such as the study of literature itself. So long as digitization is confined to data processing applications that do not result in infringing expressive or consumptive uses of individual works, there is no orphan works problem because the exclusive rights of the copyright owner are limited to the expressive elements of their works and the expressive uses of their works. © 2012 Matthew Sag. † Associate Professor of Law at Loyola University Chicago. Thanks to Pamela Samuelson for encouraging me to pursue this line of inquiry. Thanks also to Jerome Reichman, Matthew Jockers, and the participants at the 2012 Orphan Works and Mass Digitization conference at U.C. Berkeley School of Law. Please address comments to Matthewsag@gmail.com. 1503-1550_SAG_031013_WEB_WORD2003 (DO NOT DELETE) 3/10/2013 10:53:32 PM 1504 BERKELEY TECHNOLOGY LAW JOURNAL [Vol. 27:1503
Beyond Surveillance: Data Control and Body Cameras

Body cameras collect video data - lots of it - and thus many have raised questions about increased government surveillance. But if understood primarily as data collection, surveillance represents only one concern. In our big data age, “seeing, monitoring, and recording the digital footprints is quite different from sharing, releasing, revealing or publicizing the data.” Body camera policies must address not only concerns about surveillance, but also data control.
The Security Constitution

Homeland security is a critical component of the War on Terrorism. In our federal system of government, who is responsible for securing the homeland? The U.S. Congress has made available to states and cities some funding for overtime and equipment, but it has not assumed responsibility for covering all of the security costs incurred locally. While deploying some federal personnel for domestic security, the Executive branch relies largely on state and local officials for the necessary manpower. Meanwhile, governors and mayors complain about the unfairness of asking them to shoulder the burden of preventing terrorist attacks that would affect the entire nation, pointing to the risks of refusing states and cities the resources they need. Yet residents of states and cities less vulnerable to attack are reluctant to contribute to the high costs of security efforts necessary in places like New York City and Washington, D.C. Ratified in an age of insecurity, the U.S. Constitution provides clear guidance on the issue of responsibility for homeland security. The Protection Clause of Article IV requires the national government to safeguard states and their cities from attack, either by providing the necessary security or by paying the costs of security measures implemented locally. Although today largely forgotten, the Clause once maintained a prominent role in guiding federal efforts in fortifying coastal towns, securing the frontiers, and responding to foreign invasions and domestic insurrections. Examining how the Protection Clause governed early conceptions of national security - as well as early implementation of security efforts - unlocks a security constitution designed expressly to address many of the logistical concerns now raised by the War on Terrorism. Finally, the U.S. Supreme Court's anticommandeering doctrine, based on the Tenth Amendment, should not limit the national government's ability to deploy modern state and local security personnel, like law enforcement, for counterterrorism work. Historically, the Protection Clause has allowed and even compelled the federal deployment of state militia - who, under the Constitution's several Militia Clauses, could be (and often were) deployed by the federal government for security purposes. Indeed, the Constitution specifically provides for and encourages this type of commandeering as a way to protect citizens from the national military taking over towns and cities.
Toward a Constitutionalized Theory of Immigration Detention

The statutory framework governing the nation’s vast immigration detention system is based on a set of constitutional assumptions that have led the federal courts to restrict the level of judicial review available to immigration detainees. This student Note analyzes relevant Founding-era legal practices to show that the Constitution’s dual guarantees of due process and habeas review should apply to modern-day immigration detention, and that consequently immigration detainees should have more access to the courts than current doctrine permits. Read alongside this history, contemporary national practices surrounding judicial review of non-criminal detention suggest a robust set of procedural safeguards that should be applied in the immigration detention context.
Simple Pigovian Taxes vs. Emission Fees to Control Negative Externalities: A Pedagogical Note

Many economics texts introduce their analysis of negative externalities by examining a tax on the output of polluting firms, sometimes called a “simple Pigovian tax,” often pointing out that taxing...
The Sutherland Report and Dispute Settlement

This essay evaluates the treatment of dispute settlement in the recently issued Sutherland Report on the future of the WTO. While the Report is moderate in language and scope, several important elements tend in the direction of strengthening the WTO as an institution. I argue that these elements may be counterproductive. Increasing the demands of WTO membership - for example, by enlarging the organization's scope and making its rulings more binding - seems more likely at this point to result in greater suspicion and resistance. Empowering the WTO in some of the ways that the Report suggests could actually retard, rather than advance, the cause of freer global trade.
Taxation and Risk-Taking with Multiple Tax Rates

This paper extends the literature on the effect of an in- come tax on risk taking to the case where different tax rates apply to different types of assets. It shows that an income tax that nominally imposes different rates on the full return to investments can be re- characterized as a uniform tax on the risk-free rate of return to all investments plus a fixed subsidy or penalty. The subsidy or penalty depends only on the risk-free rate of return and the relative tax rates. Therefore, differential taxation does not affect risk. Moreover, for a reasonable range of parameters, the subsidy or penalty is small. The implication is that measurements of the deadweight loss from differential taxation may be too high by an order of magnitude. In addition, expenditures on reducing differential taxation, such as to make the income tax more accurate, may not be worthwhile.
Symmetric links and conway sums. Volume and jones polynomial

We obtain bounds on hyperbolic volume for periodic links and Conway sums of alternating tangles. For links that are Conway sums we also bound the hyperbolic volume in terms of the coefficients of the Jones polynomial.
Pathwise Optimization for Merchant Energy Production

We study merchant energy production modeled as a compound switching and timing option. The resulting Markov decision process is intractable. State-of-the-art approximate dynamic programming methods applied to realistic instances of this model yield policies with large optimality gaps that are attributed to a weak upper (dual) bound on the optimal policy value. We extend path-wise optimization from stopping models to merchant energy production to investigate this issue. We apply principal component analysis and block coordinate descent in novel ways to respectively precondition and solve the ensuing ill conditioned and large scale linear program, which even a cutting-edge commercial solver is unable to handle directly. Compared to standard methods, our approach leads to substantially tighter dual bounds and smaller optimality gaps at the expense of considerably larger computational effort. Specifically, we provide numerical evidence for the near optimality of the operating policies based on least squares Monte Carlo and compute slightly better ones using our approach on a set of existing benchmark ethanol production instances. These findings suggest that both these policies are effective for the class of models we investigate. Our research has potential relevance for other commodity merchant operations settings.
Performance Budgeting and Performance Funding in the States: A States Assessment

For a variety of reasons, performance budgeting has gained new life in the 1990s. Initially introduced in the 1950s by the Hoover Commission and others, performance budgeting efforts, in the 1990s, go beyond the workload productivity and efficiency focus of earlier phases and place greater emphasis on outcomes and accountability. This study reports on a survey of state executive-branch budget officers designed to determine the current status of state performance budgeting efforts including performance budgeting processes used by the states, their perceived impacts on budget decision making, and their probable future use. In addition, the study assessed the emerging role of performance funding as a further extension of performance budgeting processes. The linking of performance to the allocation or distribution of appropriated funds may be emerging as the next iteration of performance budgeting in the states. In addition to reporting on the survey, relationships between performance budgeting and various aspects of state budgeting practices are analyzed through crosstabulations, and regression analysis is employed to examine the states' organization, fiscal, and political capacity to implement performance budgeting and funding.
Did you hear? Consumers tune in to multimedia marketing.

Many people who would benefit from wearing hearing aids don't use them, largely because they're put off by the negative images associated with these products. No matter what their age, many potential users avoid purchasing a hearing aid because they believe that wearing one would make them appear old, feeble, and incompetent. A July 1997 article in the American Psychological Association's Monitor, a publication for practitioners and clinicians, described the denial and depression people associate with hearing loss. It reported that people don't want to admit their hearing loss to themselves because it connotes aging. Nor do they want to admit it to others, for fear of being viewed as incompetent. In addition, hearing loss, if not assisted with hearing aids, can lead to greater dependence upon a spouse and/or withdrawal from social events. Many times family members, co-workers, or anyone secondarily affected by the focal person's hearing loss may first diagnose the problem and recommend the impaired individual seek help.
The Theory of Child Support

What is the appropriate amount of child support to require in particular cases? How should we take account, if at all, of subsequent events such as either parent's remarriage? It seems obvious that the answers to such questions ought to turn on our purpose in requiring support payments in the first place. But while fixing the amount of child support can be politically contentious, and has attracted the attention of partisans on both sides of the gender gap, the literature contains no systematic examination of support rules in light of their underlying policy purpose. This article identifies the three fundamental policy purpose that explain why we require child support, shows that the federally-required guidelines that determine most support orders are not usually designed to further those policies, and shows why this design failure is the unintended but inevitable consequence of the economic anaysis most states rely upon for constructing their guidelines. The Article offers a new method for setting support guidelines that would ensure they reflect the policymakers' purpose. It draws on work in law and economics, and psychology, in analyzing current practice and in formulating its suggested alternative.
Complexity and Loan Performance: Evidence from the Securitization of Commercial Mortgages

Between 2001 and 2007, the complexity of commercial mortgage-backed securities (CMBS) increased substantially. The median size of commercial mortgage loan pools tripled and the median number of AAA-rated tranches doubled. I examine whether deal complexity is related to loan performance by analyzing a sample of approximately 40,000 commercial mortgage loans from 334 CMBS deals. I find that loan performance is worse for loans in more complex securitizations. However, neither the price of a deal’s securities nor a deal’s risk retention reflected that complexity correlates with lower loan quality. These findings present a challenge for theories of optimal security design.
Playing in the Sandbox: Moral Development and the Duty of Care in Collaborations between For-Profit and Nonprofit Corporate Persons

Over the history of the corporate entity, U.S. law has evolved to treat the corporate entity as a legal person under the U.S. Constitution. Despite the increased rights granted to the corporation as a legal person, both For-profit and Nonprofit corporations have come under considerable scrutiny for misconduct and issues related to corporate governance. When For-profit and Nonprofit organizations collaborate together, however, both organizations generally seek to achieve philanthropic good. On the other hand, both organizations and their management are bound by law to fulfill specific duties to their individual constituents. In the 1930s, psychologist Jean Piaget noted that “The good, in short, is not, like duty, the result of a constraint exercised by society upon the individual. The aspiration to the good is of different stuff from the obedience given to an imperative rule.” Guided by the basis for Piaget’s above assertion related to the natural person, this article begins an analysis of the relationship between legal persons: collaborating For-profit and Nonprofit organizations in light of duty, arguing that there is a balance between too much constraint and none that leads to sustainability of the cooperative venture.
Valuing (and Teaching) the Past

There is a difference between the private and social cost of preserving the past. Although it may be privately rational to forget the past, the social cost is significant: We fail to see that classical political economy is analytically egalitarian. The past is a rich source of surprises and debates, and resources on the Web are uniquely suited to teaching such wide-ranging debates. Our Secret History of the Dismal Science, at www.econlib.org, provides a series of windows on the literary and analytical texts and the artwork that figured in the debates. Students who read Smith juxtaposed with Whitman, who read the Carlyle-Mill exchange, and who see these images, understand the debate in a way that students who read only the Wealth of Nations, Ricardo's Principles, or John Stuart Mill cannot.
Who Is Afraid of Perpetual Trusts

Throw a stone into a room full of law professors, and it is virtually impossible to hit someone who will defend perpetual trusts. This essay takes up the most recent objections lodged by Lawrence Waggoner, Professor Emeritus at the University of Michigan School of Law, and Reporter for the Restatement (Third) of Property: Wills and Other Donative Transfers. He laments a bygone era when a wise pater familias maintained a personal relationship with the local banker, and genteel lawyers took their leads from uniform law commissioners. Perpetual trusts raise important policy concerns, to be sure, but they are far from "folly," as Professor Waggoner calls them. The legal system does not yet have enough experience with perpetual trusts to understand their full implications. A more prudent approach would be to embrace a variation on the long-standing approach to perpetuities problems: let’s wait and see.
Moral Intuitions about Fault, Parenting, and Child Custody after Divorce

Allocations of child custody post-divorce are currently determined according to the Best Interest Standard, i.e. on what is best for the child, as compared to standards of the recent past which weighed fairness to the parents or parental fault (or marital misconduct). Since any such evolving standards rest so fully on changing cultural norms, an important question is how these standards correspond to the moral intuitions of lay citizens asked to take the role of judge in hypothetical cases. Do factors such as whether one parent had an extramarital affair influence their custody decision-making? In the current studies, a representative sample of citizens awaiting jury service were first given a neutral scenario portraying an “average” family. Almost 80% favored dividing custodial time equally between the two parents, replicating our earlier finding. Then, in Study 1, they were given a second, Test case, vignette in which either the mother or the father was said to have carried on an extramarital affair that “essentially ruined the marriage”. In Study 2, either the mother or the father was said to have sought the divorce, opposed by the other, simply because he or she “grew tired” of the marriage. For both Test cases, more than half the respondents made little or no adjustment to their parenting time allocation, but a substantial minority did, awarding the offending parent significantly less parenting time. While one might guess some respondents would be motivated to punish the adulterous parent, we believe it less likely they would believe it appropriate to punish a spouse who sought to end marriages they no longer found satisfying. Given that there was relatively little difference in our respondents' reactions to the two test cases, we therefore considered explanations, for the responses of those who did reduce parenting time, that could apply equally to both test cases. We suggest two possibilities: 1) they find the behavior in both test cases evidence that the offending parents' commitment to parenting is deficient, since they were willing to risk imposing divorce on their children by their behavior, or 2) a spouse who imposes the burden of parental separation on the children by causing divorce should be penalized, not for the offensiveness of their conduct, but for the harm they caused their children by bringing about the divorce.
Economic Uncertainty and Interest Rates

Asset pricing models predict a strong connection between the real risk-freeinterest rate and the macroeconomy, but prior research finds little empiricalsupport for the connection when examining expected growth. This paper documentsa robust relation between the interest rate and macroeconomic uncertainty (i.e.,conditional variance). Consistent with precautionary savings, high uncertaintyis associated with a low interest rate using numerous data sources, timeperiods, and measures. A relation between habit and the interest rate disappearsafter including uncertainty, and the relation is stronger using long-rununcertainty. The results imply that analyses of the interest rate withoutuncertainty are seriously incomplete.
Adolescent Risk-Taking and Social Meaning: A Commentary

Abstract Adolescent risk-taking can be illuminated through an understanding of the development of the brain, of dual-processing theories, and of social norms and meanings. When adolescents take unjustified risks, it is often because of the weakness of their analytic systems, which provide an inadequate check on impulsive or ill-considered decisions. Social meaning plays a large role in increasing or decreasing adolescent risk-taking. For purposes of policy, one implication is that “meaning entrepreneurs,” in the private and public sectors, should be able to move behavior in better directions.