cssi/SciSciGPT-SciSciNet huggingface dataset:
Rap on Trial

In criminal proceedings across the United States, rap music lyrics are being introduced as evidence of a defendant’s guilt. In this article, we draw attention to this disturbing practice, what we call “rap on trial,” and explore its context, describe its elements and contours, and consider its broader significance. We first offer historical context, demonstrating that although the widespread use of rap lyrics in criminal trials may be a relatively recent phenomenon, it resides within a long tradition of antagonism between the legal establishment and hip-hop culture, one that can be traced back to hip-hop’s earliest roots. We then offer examples of recent cases in which rap music has been used as evidence in trials against amateur rappers, almost all of whom are young men of color, in order to illustrate the specific ways that prosecutors present the music to judges and juries, as well as to highlight the devastating effects it can have on defendants. In the final section, we consider the elements of rap m...
The good, the bad, the ugly: The NAS report on strengthening forensic science in America

In the long run, the NRC report can only have a salutary effect on forensic science. Although the report is not exhaustive in its review of the relevant literature and the law, and although broad constituencies may never embrace its most radical proposals, the report exposes the soft underbelly of a range of technologies, the organizational problems with the institutions that generate forensic science evidence, and the timidity of the courts in pushing for better science. Even if the full promise of the report is not realized, its publication ultimately should strengthen the good in a system of law and science that has its fair share of the good, the bad, and the ugly.
YES, WE HAVE NO CHAFF: A REPLY TO WAGNER'S "AUSTRIAN CYCLE THEORY: SAVING THE WHEAT WHILE DISCARDING THE CHAFF"

Richard Wagner (2000) is an attack on the Austrian business cycle (ABC) theory. Although I shall be defending the latter against the former, I welcome Wagner’s contribution to the debate on the Austrian theory of the business cycle. It provides a good background review, and provides us with an opportunity to further elaborate upon and clarify the theory.
Income and Career Satisfaction in the Legal Profession: Survey Data from Indiana Law School Graduates

This article presents data on graduates of a law school located at a large, midwestern public university. It presents responses to survey questions relating to various personal and job characteristics, including income from the practice of law and career satisfaction. It compares the responses across various demographic groups, including type of practice, gender, race, and ethnicity. We find that lawyers in large private law firms make more money than lawyers in small private practices, who, in turn, make more than those in government or public interest positions. Career satisfaction is greatest for lawyers in corporate counsel, public interest, and government jobs, followed by larger firms, and then smaller private firms. We find that women earn substantially lower incomes than men, but most of the difference can be eliminated by accounting for time taken away from paid work for childcare, among other factors. Both blacks and Hispanics make significantly less money than majority lawyers 15 years after graduation. Regarding overall satisfaction with careers, women appear to be sensitive to the number of hours of work, probably because of child-care responsibilities. Our analysis suggests that blacks and Hispanics enjoy career satisfaction in the practice of law that is not significantly lower than that of majority lawyers.
Estimating the potential impact of requiring a stand-alone board-level risk committee

Abstract Motivated by the requirement under the Dodd-Frank Act that all large bank holding companies create a stand-alone, board-level risk committee, this paper investigates the association between such a committee and regulatory risk both before and during the financial crisis. I focus the analysis on the set of banks that did not have a risk committee in place prior to the Dodd-Frank Act, as these are the banks that were most affected by the regulation. I find that matched control banks with a risk committee in place had higher capital ratios during the financial crisis, but lower capital ratios during more stable economic conditions relative to the banks without a risk committee. This paper contributes to the literature by narrowly investigating the effects a board-level risk committee, by focusing on a risk measure that is of interest to the regulators who implemented the new regulation, and by documenting that this association changes over time which highlights the importance of estimating the effects of new regulations across different economic conditions.
Throwing a Curve at Socially Responsible Investing Research A New Pitch at an Old Debate

e agree with Entine’s (2003 [this issue]) assertion that the personalhistories of the investigators matter to academic research in general,and especially to social science. Our backgrounds influence the type of researchthat attracts our time and attention, affect the theories we draw on and the data weuse, and although we less like to admit this, inevitably shade our interpretations ofthe results. But we disagree with Entine’s assertion that this renders research oncorporate social responsibility (CSP) and its relation to financial performance, orwhat is often referred to as socially responsible investing (SRI), a worthless andeven harmful academic exercise.OfcourseSRIresearchisimperfect.Aswithallsocialscienceresearch,thesim-plifications necessary in conducting SRI research make its mapping to a complexrealityimperfect.Aswithallfinancialprojections,thepastisnotaperfectindicatorof future performance. As with all accounts of a firm’s past activities and itsintended future activities, public data may not accurately reflect reality, be it theresult of fraud or error. As with the real world in general, self-interest exists, and itinevitably if not intentionally shades our interpretations of subjective data. How -ever,theseimperfectionsdonotrenderSRIresearchuseless.Eventhoughthefind -ings of SRI research have been mixed, often incomparable, and as a result, notentirely compelling, such studies have put firms and investors in a better positionthan they would be if there were no SRI research. More important, the state of the“art” is advancing.Inthisarticle,weprimarilyfocusonEntine’s(2003)assertionthatSRIresearchis “hopelessly flawed” (p. 352).We argue that although SRI researchers have pri -marily chosen to pluck the low-hanging fruit in this line of inquiry, it is possible toobtain unbiased higher level insight. In the following, we offer what we believe tobeanagnosticapproachtoassessingSRIresearch.Wehaveobserved,throughmin -imally biased academic eyes,
Discrimination by Comparison

Contemporary discrimination law is in crisis, both methodologically and conceptually. The crisis arises in large part from the judiciary’s dependence on comparators— those who are like a discrimination claimant but for the protected characteristic—as a favored heuristic for observing discrimination. The profound mismatch of the comparator methodology with current understandings of identity discrimination and the realities of the modern workplace has nearly depleted discrimination jurisprudence and theory. Even in run-of-the-mill cases, comparators often cannot be found, particularly in today’s mobile, knowledge-based economy. This difficulty is amplified for complex claims, which rest on thicker understandings of discrimination developed in second-generation intersectionality, identity performance, and structural discrimination theories. By treating comparators as an essential element of discrimination, instead of as a heuristic device to help discern whether discrimination has occurred, courts have largely foreclosed these other theories from consideration. At the same time, courts have further shrunk the very idea of discrimination by disregarding a central lesson from harassment and stereotyping jurisprudence: discrimination can occur without a comparator present. The comparator methodology retains its appeal, despite these deficiencies, because its empirical patina permits courts to evaluate discrimination claims without appearing to engage in a subjective analysis of workplace dynamics. Given the complex nature of both identity and discrimination, however, the comparisons produce a false certainty at best. By contrast, alternate methodologies, including the contextual consideration favored in harassment and stereotyping jurisprudence as well as the hypothetical comparator embraced in European law, offer a meaningful framework for matching discrimination law and norms to workplace facts, while preserving judicial legitimacy. With comparators dislodged from their methodological pedestal, we may yet recover space for the renewed development of discrimination jurisprudence and
Another View on U.S. Treasury Term Premiums

The consensus suggests that subdued nominal U.S. Treasury yields, on balance since the onset of the global financial crisis, primarily reflect exceptionally low, if not negative at times, term premiums as opposed to low anticipated short rates. Depressed term premiums plausibly owe to unconventional Federal Reserve policy as well as net flight-to-quality flows during the period. However, two strands of evidence raise questions about this story. First, a purely survey-based expected forward term premium measure, as opposed to an approximate spot estimate, has increased rather than decreased in recent years. Second, with respect to the timeseries dynamics of common affine term structure model (ATSM) factors, simple econometrics of recent data produce not only a more persistent level of the term structure, but also a depressed long-run mean, which in turn implies an implausibly low expected short rate path. Strong caveats aside, an implication for central bankers is that unconventional monetary policy measures may have worked in more conventional ways, and an inference for investors is that longer-dated yields embed meaningful compensation for bearing duration risk.
Impossible Subjects: Illegal Aliens and Alien Citizens

America is a nation of immigrants, according to our national narrative. This is the America with its gates open to the world, as well as the America of the melting pot. Underpinning this national narrative is a very particular story of immigration that foregrounds the inclusion of immigrants, rather than their exclusion. In a stunning and beautifully written book, 'Impossible Subjects: Illegal Aliens and the Making of Modern America' (Princeton, 2003), historian Mae Ngai directs our attention to a history that has been occluded in this national narrative of immigration and citizenship. Impossible Subjects examines the woefully understudied period between 1924 and 1965, the tenure of the national origins quota system. This epoch, the most comprehensive immigration restriction in U.S. history, literally remapped the nation. Throughout the book, Ngai reminds us that what we experience today as "common sense" in terms of our immigration law and policy is historically contingent. What we believe to be hardened borders of citizenship and immigrant status have in actuality been enormously malleable. Both citizens and aliens have been "made" and "unmade," through both acts of the state and the individual. And the border between the "legal" and the "illegal" has been porous. At the heart of the book, are the questions of illegality in immigration and how illegal immigration came to be cast as the central problem of U.S. immigration policy in the twentieth century. This review begins by examining Ngai's analysis of the historical construction of the "illegal alien" through what may seem, at first blush, paradoxical: the regulation of legal immigration. I discuss this history in light of President George W. Bush's proposal to create a new guest-worker program, as well as Samuel Huntington's controversial new book, 'Who Are We', which calls for curbing immigration from Mexico, in light of its threat to "American national identity." I then turn to Ngai's discussion of "alien citizens," persons who enjoy the formal status of citizenship as an immigration matter, but lack citizenship as a matter of identity. Ngai analyzes a relationship between migrancy, nationalism, and war that is made visible in the renunciation by 5,500 Japanese Americans in internment camps of their U.S. citizenship during World War II, as well as the legalization of 30,000 Chinese Americans who "confessed" their illegal immigration status during the Cold War period. I consider the concept of alien citizens in light of the present "war on terror." Impossible Subjects requires that we abandon our amnesia about policies creating illegal aliens and alien citizens, forgettings that have been constituent to our national identity. This powerful book alters our vision of immigration, in showing us the constructed and contingent nature of its legal regulation.
TWAIL: A Brief History of its Origins, its Decentralized Network, and a Tentative Bibliography

This article traces the contemporary origins of Third World Approaches to International Law (TWAIL) in the late 1990’s. It argues that since then, TWAIL-ers have not sought to produce a single authoritative voice or text. Instead, they have generated vibrant ongoing debate around questions of colonial history, power, identity and difference, and what these mean for international law. TWAIL scholarship has also considered possibilities for egalitarian change in a broad variety of areas in the fields of public international law and international economic law. In doing so, TWAIL-ers have addressed multiple issues related to society, politics, identity and economic - with an underlying commitment to democratic values and concerns in relations within and between the Third World and developed countries. As a distinctive way of thinking about international law, TWAIL is a historically aware methodology - one that challenges the simplistic visions of an innocent third world and a colonizing and dominating first world. This methodology proceeds from the assumption that is not possible to isolate modern forms of domination such as governmentality, from the continuation of older modes of domination (colonial and precolonial). This article argues that TWAIL has become an expansive, heterogeneous and polycentric dispersed network and field of study. As a field, TWAIL is being continuously re-invented and shaped by new scholars infusing their passion into its central concerns. These scholars are refashioning and contesting what they take as central TWAIL tenets and inventing their own TWAILS. Thus, TWAIL is a discipline in transition, expansion, definition and internal contestation about the varied agendas of its scholars, all at the same time.
Ranking Law Schools: Using SSRN to Measure Scholarly Performance

There are several methods for ranking the scholarly performance oflawfaculties, including reputation surveys (U.S. News, Leiter); publication counts (Lindgren and Seltzer, Leiter); and citation counts (Eisenberg and Wells, Leiter). Each offers a useful but partial picture offaculty performance. We explore here whether the new "beta" SSRN-based measures (number of downloads and number ofposted papers) can offer a different, also useful, albeit also partial, picture. Our modest claim is that SSRNbased measures can address some of the deficiencies in these other measures and thus play a valuable role in the rankings tapestry. For example, SSRN offers real-time data covering most American law schools and many foreign law schools, while citation and publication counts appear sporadically and cover a limited number of U.S. schools. The SSRN measures favor work with audiences across disciplines and across countries, while other measures are more law-centric and U.S.-centric. SSRN is relatively new and thus favors younger scholars and improving schools, while other measures favor more established scholars and schools. At the same time, the SSRN measures have important field and other biases, as well as gaming risks. We assess the correlations among the different measures, both on an aggregate and on a per-facultymember basis. We find that all measures are strongly correlated; that total and per faculty measures are highly correlated; and that SSRN measures based on number of papers are highly correlated with measures based on number of downloads. Among major schools, all measures also correlate with school size. For commentary on this article and the role of SSRN in law faculty rankings, see: - Lawrence A. Cunningham, Commentary, Scholarly Profit Margins and the Legal Scholarship Network: Reflections on the Web, 81 IND. L.J. 271 (2006). - Theodore Eisenberg, Commentary, Assessing the SSRN-Based Law School Rankings, 81 IND. L.J. 285 (2006).
Private Law and Public Stakes in European Integration: the Case of Property

In European legal discourse, the old public/private divide is experiencing a revival and a transformation. Member States used to claim autonomy in private law matters. Now private law is subsumed into a functionalist logic and can presumptively be harmonised if so demanded by the goal of market integration. States or local constituencies can only resist harmonisation by highlighting the connection between their private laws and those ‘public’ matters still immune from Europeanisation. Property law can effectively illustrate this phenomenon. The written pledge of non‐interference with States’ property systems, restated both in the TEC and in the draft Constitution, cannot be taken at face value, given the plethora of supra‐national inroads into this field. But it performs the essential rhetorical function of reassuring national law makers that Europe will pay special attention to sovereign choices when harmonising those areas of private law which, like property, harbour an obvious core of constitutional values.
Property Metaphors and Kelo v. New London: Two Views of the Castle

Much of the popular outcry against the Supreme Court's decision in Kelo v. New London can be understood in terms of the public's commitment to the conception of the home as a castle. This familiar metaphor is typically viewed as aligned with libertarian conceptions of property and of the right to exclude. Taken to its logical conclusion, the metaphor's connotation of an owner's "absolute dominion" would seem to rule out the exercise of eminent domain altogether. A different understanding of the castle metaphor is possible, however, one rooted in notions of the dignity of home ownership. While such a dignitary understanding of the home as the castle remains true to the intuitions underlying the metaphor, it yields a far more flexible stance towards eminent domain.
Modeling Dyadic Interactions and Networks in Marketing

Many substantive areas in marketing share a basic concern with relationships. Social network and dyadic interaction methods are techniques that can enrich a researcher's understanding of the struct...
Is Tax Volatility Priced by Lenders in the Syndicated Loan Market

In this study, I consider the effects of tax risk from tax volatility on the pricing of syndicated debt. Tax volatility is an interesting feature in that managers have some discretion over the risks they take with their tax strategies, which, however, are often harder to monitor for outsiders than risks related to other business activities. Framing my predictions based on the theoretical model developed by Merton [1974], I hypothesize and find that tax volatility is incrementally informative to other priced risks suggesting that tax risks per se are relevant to lenders. Moreover, I find that the results are stronger when the loan contract does not include performance pricing provisions or other restrictions, such as capital expenditure covenants, that protect lenders. This evidence adds to knowledge about the real effects of tax risk.
Domestic airline alliances and consumer welfare

This article investigates the consumer welfare consequences of the recent code-share agreement between Continental Airlines and Northwest Airlines. We develop a discrete choice model based on individual flight characteristics. This structural model recognizes that consumers (i) may have heterogeneous preferences for flight attributes, and (ii) may face different prices for the same flight. The empirical methodology also deals with the measurement error problem stemming from the absence of consumer-level data on prices. The estimation results suggest that, whereas the code-share agreement did not impact consumers significantly on average, it increased the average surplus of connecting passengers but decreased the average surplus of nonstop passengers. Interestingly, the magnitude of our welfare results may be attributed in large part to changes in product characteristics other than prices.
THE STATUS OF NEUTRINO MASS

New experimental results, if correct, require at least one light sterile neutrino, in addition to the three active ones, to accommodate the mass differences required to explain the solar νe deficit, the anomalous μ/e ratio produced by atmospheric neutrinos, and either the candidate events for νμ→ νe (or ) from the LSND experiment, or the possible need for a hot component of dark matter. This neutrino mass pattern can not only accommodate all these four requirements, but also provide a robust solution to a problem presently making heavy-element synthesis by supernovae impossible and resolve a possible discrepancy between big bang nucleosynthesis theory and observations.
Toward an International Law of Piracy Sui Generis: How the Dual Nature of Maritime Piracy Law Enables Piracy to Flourish

This article explores the divergence between international and national legal responses to maritime piracy, and it addresses the benefits of a unified international legal framework. Current domestic, regional and international legal frameworks fail to adequately combat the nature and scale of maritime piracy, which increasingly impacts the shipping, global manufacturing and tourism industries and which governments now consider to be a serious problem. As of yet, no unified legal approach exists to address the problem of modern piracy. The crux of the argument advanced in this article is that an inadvertent – yet dangerous – bifurcation of legal developments has unfolded within the field of maritime piracy, consequently creating a body of law that lacks harmony.
Time-dependent Turbulence in Stars

Steward Observatory, University of Arizona,Tucson AZ 85721, USAemail: wdarnett@gmail.comAbstract.Three-dimensional (3D) hydrodynamicsimulations ofshell oxygen burningby Meakin & Arnett(2007b)exhibit bursty, recurrent ﬂuctuations in turbulent kinetic energy. These are shown to be due toa global instability in the convective region, which has been suppressed in simulations of stellarevolution which use mixing-length theory (MLT). Quantitatively similar behavior occurs in themodel of a convective roll (cell) of Lorenz(1963), which is known to have a strange attractorthat gives rise to random ﬂuctuations in time. An extension of the Lorenz model, which includesKolmogorov damping and nuclear burning, is shown to exhibit bursty, recurrent ﬂuctuations likethose seen in the 3D simulations. A simple model of a convective layer (composed of multipleLorenz cells) gives luminosity ﬂuctuations which are suggestive of irregular variables (red giantsand supergiants, see Schwarzschild(1975). Details and additional discussion may be found inArnett & Meakin(2011).Apparentinconsistencies between Arnett, Meakin, & Young(2009) and Nordlund, Stein, & Asplund(2009)on the nature of convective driving have been resolved, and are discussed.Keywords.turbulence, irregular variables, convection
Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries.
A simple indicator of systemic risk

We examine the relevance and effectiveness of stock return correlations among financial institutions as an indicator of systemic risk. By analyzing the trends and fluctuations of daily stock return correlations and default correlations among the 22 largest bank holding companies and investment banks from 1988 to 2008, we find that daily stock return correlation is a simple, robust, forward-looking, and timely systemic risk indicator. There is an increasing trend in stock return correlation among banks, whereas there is no obvious correlation trend among non-banks. We also disaggregate the stock returns into systematic and idiosyncratic components and find that the correlation increases are largely driven by the increases in correlations between banks’ idiosyncratic risks, which give rise to increasing systemic risk. Correlation spikes tend to predict or coincide with significant economic or market events, especially during the 2007–2008 financial crisis. Furthermore, we show that stock return correlations offer a perspective on the level of systemic risk in the financial sector that is not already captured by default correlations. Stock return correlations are not subject to data limitations or model specification errors that other potential systemic risk measures may face. Therefore, we recommend that regulators and businesses monitor daily stock return correlations among those large and highly leveraged financial institutions to track the level of systemic risk.
The Law and Economics of Costly Contracting

In most of the contract theory literature, contracting costs are assumed either to be high enough to preclude certain forms of contracting, or low enough to permit any contract to be written. Similarly, researchers usually treat renegotiation as either costless or prohibitively costly. This paper addresses the middle ground between these extremes, in which the costs of contracting and renegotiation can take intermediate values and the contracting parties can themselves influence these costs. The context for our analysis is the canonical problem of inducing efficient relation-specific investment and efficient ex post trade. Among our principle results are: (i) The efficiency and complexity of the initial contract are decreasing in the cost to create a contract. Hence, the best mechanism design contracts can be too costly to write. (ii) When parties use the simpler contract forms, they require renegotiation to capture ex post surplus and to create efficient investment incentives. In some cases, parties want low renegotiation costs. More interesting is that, in other cases, parties have a strict preference for moderate renegotiation costs. (iii) The effect of Contract Law on contract form is significant but has been overlooked. In particular, the law's interpretive rules raise the cost of enforcing complex contracts, and thus induce parties to use simple contracts. Worse, the law also lowers renegotiation costs, which further undermines complex contracts and is also inappropriate for some of the simpler contracts.
A Sampling-Based System of Civil Liability

To achieve more cost-effective deterrence of unreasonable risk-taking through civil liability, I propose and demonstrate previously unrecognized benefits of using simple random sampling to resolve multiple claims against a business or government defendant in the aggregate. I show that counter to intuition and prevailing assumptions and practice, simple sampling will enhance, not compromise, deterrent results regardless of the number of claims and the variety and significance of differences among them. Indeed, it can be used to resolve multiple claims that bear no resemblance to one another except for targeting the same defendant. The proposal can thus be employed to increase the efficiency of resolving relatively similar claims in class and consolidated actions and, by extending the application of such collectivizing processes, lower the cost of resolving all other claims that would be adjudicated as separate actions. I close by sketching a design for a reformed civil liability system that fully integrates and exploits the law enforcement benefits of sampling to better achieve the primary social objectives of accident risk deterrence and insurance.
"Sweet Childish Days": Using Developmental Psychology Research in Evaluating the Admissibility of Out-of-Court Statements by Young Children

A three-year-old child, while being bathed by her babysitter, innocently mentions that her “pee-pee” hurts. When the babysitter asks the child how she hurt it, she says, “Uncle Ernie (her mother’s boyfriend) told me not to tell.” A subsequent medical examination reveals that the child has gonorrhea, a sexually transmitted disease.By the time of trial, the child is four and-a-half-years old. When questioned by the trial judge, she cannot explain to the judge’s satisfaction, “the difference between the truth and a lie.” Moreover, she has no long term memory of the incident. The judge rules the child incompetent to testify.Can the child have made a reliable statement a year and a half before? Should the babysitter’s testimony be admitted, if it otherwise falls within a hearsay exception? If the statement is nontestimonial under Crawford v. Washington and its progeny the due process clause governs, rather than the confirmation clause.The author’s thesis is that ruling on the admissibility of the child’s out-of-court statement should be informed by social science research in the field of developmental psychology. That research has shown that young children’s statements regarding recent events may be just as, or even more, reliable than adult’s observations and recollections. She proposes that if a child of the declarant’s age could have made a reliable statement of the type offered it ought to be admitted, and attacks on the child’s credibility should go to the weight of the evidence.Even if the child is found competent and permitted to testify at trial, a young child’s testimony may be either not forthcoming (like that of an adult domestic violence victim) or simply ineffective due to the child’s being confused by complex questions inappropriate to her age.The confrontation clause will not bar even testimonial hearsay statements when a child testifies at trial. The author argues that, in this situation, too, hearsay that passes the due process test should be admitted. Additionally, she argues that the judge ought to employ Evidence Rule 611(a) to preclude developmentally inappropriate questioning of young witnesses.
Inferring U.S. Tax Liability from Financial Statement Information

Abstract: Using a multi‐year matched tax return‐financial statement data set, this study builds empirical models that infer U.S. tax liability on the corporate tax return from publicly available financial statement disclosures, including those of Statement on Financial Accounting Standards No. 109, Accounting for Income Taxes. Results show that current U.S. tax expense, the tax benefit from stock options, current‐year tax cushion accrual, consolidation book‐tax differences, and R&D are informative in inferring actual tax, while intraperiod tax allocation is not. Additionally, the sign of pretax book income and the existence of net operating loss carryforwards are useful partitioning variables in estimating actual tax. In general, for every dollar of current U.S. tax expense reported on the financial statements, approximately $0.70 is reported in U.S. tax liability on the tax return. The models are validated using a holdout sample, providing support for the notion that public parties can reliably use these...
The Transformation of European Community Competition Law

In a 1991 article entitled The Transformation of Europe, Joseph Weiler analyzed the profound changes that have occurred in the institutional structure of the European Community during the past two decades. The cumulative effect of these changes has been, he claimed, to "transform" the Community, to alter its basic characteristics. In this Article, I focus on the competition law system of the Community — one of its central pillars — and ask whether it also has changed in fundamental ways. I conclude that it has and that it is in the process of changing even more fundamentally, with potentially profound, and as yet largely unrecognized, implications for the future of Europe — and beyond.Conventional descriptions of Community competition law project a different image; intimations of fundamental change rarely surface and then only at the margins of discourse. The dominant theme is the "maturation" of Community competition law, and the focus is on whether conceptual and doctrinal questions have been "answered" or "clarified" and on whether competition law procedures have been made fairer or more efficient. These are important issues, but they are not the focus of my inquiry. I seek instead to apply a different conceptual lens — a lens designed to detect changes in the operation of the competition law system and in the forces affecting it.
Equity‐Based Compensation of Outside Directors and Corporate Disclosure Quality

We examine the relationship between a firm's disclosure quality and equity-based compensation of independent members of the board of directors. The dimensions of disclosure quality we focus on are management's earnings guidance and information flowthrough financial analysts. Using both levels and changes specifications, we find the average ratio of equity-based pay to total pay of independent board members to be positively related to a firm's disclosure quality. Our findings are robust to the inclusion of management's equity-based compensation, other governance measures, and financial controls, and robust to instrumental variable tests of endogeneity. Furthermore, we find directors’ equity-based compensation to be negatively associated with the firm's cost of equity capital. Our results are consistent with equity-based compensation providing incentives to independent directors to push for better disclosure quality
Critical Race Theory and International Law: The View of an Insider-Outsider

This article contends that international law, like national law, is captive to the racial biases and hierarchies that hide injustice under the pretext of legal neutrality and universality. It argues that international law is tormented by racist and hegemonic asymmetries that govern the international order. The piece posits that international law could benefit greatly from the method of critical race theory in unpacking the pathologies of power and race that define it. It focuses on the use of international law to conceive and buttress the exploitation and marginalization of the North by the South. It calls for a reconstruction of international law to serve the ends of justice and equality.
Regional Integration Mechanisms in the Law of the United States: Starting Over

The theme of this conference is the globalization of world markets and the ramifications of this trend for national legal and political systems. One of the principal factors which has accelerated the globalization or transnational extension of markets has been the formation of regional trading arrangements (RTAs). The archetypal RTA is of course the European Community. There has perhaps been no, more compelling example of the harmonization and integration of national legal systems undertaken on a voluntary basis than the harmonization or approximation undertaken by the Member States of the EC over the past thirty-five years, and particularly over the past several years in consequence of the implementation of the 1992 Program.1 The United States is a party to RTAs both with Israel and Canada, and is negotiating the formation of a third, the North American Free Trade Agreement (NAFTA).2 RTAs are a prominent feature of the Latin American legal landscape, with reference for example to the new Southern Cone arrangement involving Argentina, Brazil, Paraguay, and Uruguay,3
Aristotle on the Philosophical Nature of Poetry

In Poetics chapter 9, Aristotle claims that the poet's function differs from the historian's. The historian should describe what has happened, but the poet should say ‘what sorts of thing might happen, that is, the things possible according to likelihood or necessity’ (1451a36–8). The difference is not between fiction and non-fiction. Some past events happened according to likelihood and are thereby candidates for poetic representation (1451b29–32). Rather, the poet differs from the historian with respect to the level of abstraction at which he considers the actions and experiences of agents. The historian should engage in accurate and thorough ἱστορ⋯α—‘research’ or ‘fact-gathering’—by carefully recording his or others' observations of particular events. The poet, on the other hand, looks for causal relations among fictional or non-fictional events, for he cares whether his composition has a plot with events that happen because of other events and not merely after them (cf. 1452a20–l). The poet may discern in the historian's materials some causally related events fit for dramatic or epic representation, but that is not the historian's concern. As Aristotle says in chapter 23, the historian should report ‘whatever befell one or more people during a particular period of time, each of the events relating to the others by chance’ (1459a23–4). The last clause is an overstatement; we have just noticed Aristotle's admission that some past events were likely to happen. Also, he elsewhere says that ‘future events will for the most part be like past events’, presumably because they share a similar causal structure ( Rh . 1394a8). The remark's point is clear enough, though: the historian should report what happened whether or not the events exhibit explanatory coherence.
Broadcasting Opinions with an Overconfident Sender

We analyze a model where an altruistic, but possibly overconfident sender broadcasts one of a finite set of messages to rational receivers. If broadcasting is costless and the sender is rational, there is an informationally efficient equilibrium, but multiple equilibria may arise, and asymmetric equilibria might be more informative than the symmetric equilibrium even if the prior is symmetric. Although overconfidence on the part of the sender reduces informativeness in some cases, it may also eliminate less informative equilibria and lead to better information transmission. Overconfidence can also improve the informativeness of the message when broadcasting is costly.
3D­Mapping Optimization of Embodied Energy of Transportation

The recent development of Google Earth, an information service that provides imagery and three-dimensional data depicting the entire Earth, provides an opportunity to use a new method of navigating information to save energy in the real world. Google Earth uses Keyhole Markup Language (KML) for modeling and storing geographic features and information for display in the Google Earth Client. This paper will analyze the potential of this novel and free geographic mapping service to reduce embodied energy of transportation in two ways. First, at the consumer level, Google Earth will be studied to map the automobile route that uses the least fuel and maintains vehicle velocities at their individual maximum fuel efficiency. The same analysis for single destination trips could be used to optimize fleet vehicle routes such as garbage or recycling collection trucks. The secondary benefit of ecological education will also be explored. Fuel used could be converted into monetary units based on the current price of gas, pollution/greenhouse gas emissions, or ecological footprints to improve driving habits. Secondly, KML overlays will be analyzed for use of determining: (i) raw material and products availability as a function of location, and (ii) modes of transportation as a function of emissions. These overlays would enable manufacturers access to an easily navigable method to optimize the life cycle of their products by minimizing embodied energy of transportation. The most efficient transportation methods and travel routes could be calculated. This same tool would be useful for architects to obtain Leadership in Energy and Environmental Design rating points for the green design of buildings. Overall, the analysis completed finds that the flexibility and visual display of quantitative information made available by Google Earth could have a significant impact at conserving fuel resources by reducing the embodied energy of transportation on a global scale.
Short sales, stealth trading, and the suspension of the uptick rule

Abstract Prior work contends that informed short sellers do not stealth trade because the uptick rule produces “execution uncertainty” and does not afford short sellers the opportunity to spread their trades across time. Contrary to this idea, our results show that informed short sellers tend to use larger trade sizes, instead smaller trade sizes, after the suspension of the uptick rule. Further, we find that the use of smaller short sales during the post-suspension period, which is documented in prior studies, is not a result of greater stealth-trading activity and is instead explained by a reduction in liquidity that occurs when the uptick rule is suspended.
The Impact of Homeowners' Housing Wealth Misestimation on Consumption and Saving Decisions

Using a unique data set of 81,943 house value estimates by the homeowners and their financial institution, I find that homeowners overestimate their house value by 3.1%. After controlling for homeowners' socioeconomic characteristics, I find that ex ante homeowners who rate (cash-out) refinance an existing loan to increase savings (consumption) are significantly more likely to underestimate (overestimate) their house value. Moreover, overestimators (underestimators) are more likely to increase (reduce) their spending ex post. Finally, I also find that underestimators are more likely to prepay their loans and overestimators are more likely to default on their loans.
Pricing Mortgage-Backed Securities in a Multifactor Interest Rate Environment: A Multivariate Density Estimation Approach

Multivariate density estimation (MDE) suggests that mortgage-backed security (MBS) prices can be well described as a function of the level and slope of the term structure. We analyze bow this function varies across MBSs with different coupons. An important finding is that the interest rate level proxies for the moneyness of the option, the expected level of prepayments, and the average life of the cash flows, while the term structure slope controls for the average rate at which these cash flows should be discounted. Though the origination and prepayment behavior of mortgages differ substantially across coupons, there remains an unexplained common factor in MBS prices. This factor does not seem to be related to the usual suspects and therefore presents a puzzle to financial economists. Coauthors are Robert F. Whitelaw, Matthew Richardson, and Richard Stanton. Article published by Oxford University Press on behalf of the Society for Financial Studies in its journal, The Review of Financial Studies.
Audit Quality and Specialist Tenure

ABSTRACT We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. We measure audit quality using absolute discr...
Probability Neglect: Emotions, Worst Cases, and Law

When strong emotions are triggered by a risk, people show a remarkable tendency to neglect a small probability that the risk will actually come to fruition. Experimental evidence, involving electric shocks and arsenic, supports this claim, as does real-world evidence, involving responses to abandoned hazardous waste dumps, the pesticide Alar, and anthrax. The resulting “probability neglect” has many implications for law and policy. It suggests the need for institutional constraints on policies based on ungrounded fears; it also shows how government might effectively draw attention to risks that warrant special concern. Probability neglect helps to explain the enactment of certain legislation, in which government, no less than ordinary people, suffers from that form of neglect. When people are neglecting the fact that the probability of harm is small, government should generally attempt to inform people, rather than cater to their excessive fear. But when information will not help, government should respond, at least if analysis suggest that the benefits outweigh the costs. The reason is that fear, even if it is excessive, is itself a significant problem, and can create additional significant problems. “If someone is predisposed to be worried, degrees of unlikeliness seem to provide no comfort, unless one can prove that harm is absolutely impossible, which itself is not possible.”1 “[A]ffect-rich outcomes yield pronounced overweighting of small probabilities . . . .”2 “On Sept. 11, Americans entered a new and frightening geography, where the continents of safety and danger seemed forever shifted. Is it safe to fly? Will terrorists wage germ warfare? Where is the line between reasonable precaution and panic? Jittery, uncertain and assuming the worst, many people have answered these questions by forswearing air travel, purchasing gas masks and radiation detectors, placing frantic calls to pediatricians demanding vaccinations against exotic diseases or rushing out to fill prescriptions for Cipro, an antibiotic most experts consider an unnecessary defense against anthrax.”3 *Karl N. Llewellyn Distinguished Service Professor, University of Chicago, Law School and Department of Political Science. I am grateful to Christine Jolls, Eric Posner, Richard Posner, and Adrian Vermeule for helpful comments on a previous draft, and to Martha Nussbaum for valuable discussion. 1See John Weingart, Waste Is A Terrible Thing To Mind 362 (2001). 2Yuval Rottenstreich and Christopher Hsee, Money, Kisses, and Electric Shocks: On the Affective Psychology of Risk, 12 Psych Rev. 185, 188 (2001). 3Erica Goode, Rational and Irrational Fears Combine in Terrorism's Wake, The New York Times, Oct. 2, 2001.
How Encouraging Niceness Can Incentivize Nastiness: An Unintended Consequence of Advertising Reform

AbstractEnacted in an effort to discourage negative political advertising, American regulations mandate that candidates endorse their ads (“My name is _____, and I approve this message.”). Four studies suggest that mandatory endorsements enhance the perceived credibility of some ads these regulations were designed to discourage. This research tests for what types of messages mandatory endorsements have this effect, and why. Mandatory endorsements boosted evaluations of policy-focused attack ads—those typically plagued by overcomeable skepticism—but had no consistent effect on positive or character-focused ads. Mandatory endorsements boost ad believability—largely outside of participants’ awareness—for two reasons: (1) the tagline offers a legitimizing association with regulation and (2) the candidates’ own personally delivered endorsement language offers an implicit promise of the ads’ truth value. The authors discuss how these findings bring order to and extend previous work on mandatory endorsements and...