cssi/SciSciGPT-SciSciNet huggingface dataset:
The switching relationship between natural gas and crude oil prices

Abstract In this analysis we more accurately capture the cointegrating relationship between natural gas and crude oil prices by endogenously incorporating shifts in the cointegrating vector into the estimation of the cointegrating equation. Specifically, we allow the cointegrating equation to switch between m states, according to a first-order Markov process. First, we find evidence that regime-switching exists in the relative pricing relationship, and that two is the optimal number of states. Once we control for shifts in the cointegrating vector, we find that natural gas and crude oil prices are cointegrated, and an error correction model (ECM) of their long-term equilibrium relationship is properly specified. This finding broadens the ECM model of their relationship to longer and more varied sample periods. Also, in a direct comparison of the two and one state cointegrating equations, we found evidence of the potential superiority of the two-state equation, in that it may be robust to shifts in the cointegrating vector which are missed by standard tests for a unit root. Further, our analysis finds evidence that natural gas and crude oil prices did not permanently ‘decouple’ in the early 2000s, but rather experienced a temporary shift in regimes. We find that forecasts of the relative pricing of natural gas and crude oil should be conditioned on state probability.
Toward a Housing Imperative and Other Reflections on Balanced Growth and Development

In a series of recent cases, the New York courts have commented on the legislative acts of the state and local governments which have restricted or expanded the access to housing for limited income households or minorities. From these holdings, we can glimpse the outlines of a housing imperative: an emerging right running generally to low and moderate income households and minorities not to be excluded from living in any given community. As important, there also emerges the understanding that our legislators are empowered to act decisively to solve New York's much-lamented housing problem.
The History of Sexual Anatomy and Self-Referential Philosophy of Science

: This essay is a case study of the self-destruction that occurs in the work of a social-constructionist historian of science who embraces a radical philosophy of science. It focuses on Thomas Laqueur's Making Sex: Body and Gender from the Greeks to Freud in arguing that a history of science committed to the social construction of science and to the central theses of Kuhnian, Duhemian, and Quinean philosophy of science is incoherent through self-reference. Laqueur's text is examined in detail in order to make the main point; a similar phenomenon in the work of the feminist historian of science Evelyn Fox Keller is then briefly discussed.
The Unconvincing Case Against Private Prisons

In 2009, the Israeli High Court of Justice held that private prisons are unconstitutional. This was more than a domestic constitutional issue. The court anchored its decision in a carefully reasoned opinion arguing that the state has a monopoly on the administration of punishment, and thus private prisons violate basic principles of modern democratic governance. This position was immediately elaborated upon by a number of leading legal philosophers, and the expanded argument has reverberated among legal philosophers, global constitutionalists, and public officials around the world. Private prisons are a global phenomenon, and this argument now stands as the definitive principled statement opposing them. In this Article, I argue that the state monopoly theory against privatization is fundamentally flawed. The Article challenges the historical record and philosophy of the state on which the theory is based, and then explores two other issues the theory wholly ignores: private custodial arrangements in other settings that are widely regarded as acceptable if not exemplary and third-party state arrangements that are universally hailed as exemplary. The Article presents first-of-its-kind empirical data on private prisons in Australia, discusses the implications of readily available information on juvenile facilities, and explores interstate compacts on prisoner transfers. The Article maintains that the state monopoly theory erroneously asserts that privatization is inconsistent with the modern state, and concludes with a call for policymakers and judges to imbue their future privatization decisions with local knowledge and time-honored pragmatism.
Going Soft: How the Rise of Software-Based Innovation Led to the Decline of Japan's IT Industry and the Resurgence of Silicon Valley

Abstract This paper documents a systematic shift in the nature of innovation in information technology (IT) toward increasing dependence on software. Using a broad panel of U.S. and Japanese publicly listed IT firms in the period 1983 to 2004, we show that this change in the nature of IT innovation had differential effects on the performance of the IT industries in the United States and Japan, resulting in U.S. firms increasingly outperforming their Japanese counterparts, particularly in more software-intensive sectors. We provide suggestive evidence that human resource constraints played a role in preventing Japanese firms from adapting to the documented shift in IT innovation.
Lessons from the Subprime Debacle: Stress Testing CEO Autonomy

Corporate governance law in the United States played a central role in the subprime debacle. Specifically, CEOs exercised sufficient autonomy to garner huge compensation payments based upon illusory income. Instead of profits, firms absorbed huge risks. The economic losses arising from this misconduct total trillions of dollars. This article seeks to reconfigure CEO autonomy in the public firm based upon the best extant empirical evidence regarding the optimal contours of CEO autonomy. This vision of optimal autonomy is then viewed through the lens of the subprime catastrophe. The article articulates the political dynamics that have led to suboptimal contours for CEO autonomy. In light of this evidence, the article proposes three specific mechanisms for curtailing autonomy pursuant to federal law: a mandatory and independent risk management committee; a mandatory and independent Qualified Legal Compliance Committee, with enhanced attributes; and, a new mechanism for contested corporate board elections. These mechanisms seek to vindicate CEO autonomy over the public firm's operations while expanding the monitoring functions of the board.
Law, Land, Identity: The Case of Lady Anne Clifford

This article presents a case study from seventeenth century England to illustrate the connection between fully-vested ownership in property and full civic personhood for women. Lady Anne Clifford (1590-1676) spent most of her adult life litigating her rights to ancestral lands her father had willed to his brother rather than to her. Clifford's life and writings make clear that the property rights she fought for and won granted her an identity not fully constrained by her culture's gender norms. These rights allowed her to take her place in the web of mutual rights and obligations attendant on fully-vested property holding, and thus allowed her to take her place in civil society as a full person, a subject who acted rather than an object who was acted upon. The texts through which Clifford constructed her identity -- her diaries and autobiography, her building projects, and the art works and monuments she commissioned--show how her fully-vested property rights gave her a sense of full civic personhood, embedded as a subject in history and in the society of her day.
Tariff liberalization policy and financial restrictions

Abstract The purpose of this paper is to assess how restrictions on capital mobility affect adjustment to a tariff liberalization policy. This is done by comparing the adjustment process under free and restricted convertibility of foreign assets in a regime where the commercial exchange rate is pegged. It is shown that starting from an equilibrium characterized by significant scarcity of foreign assets, a policy of simultaneous liberalization of both current and capital account would cause a larger drop in domestic goods prices than would the short-run effects of tariff liberalization alone. In such an economy the effect of liberalization of capital controls is to generate current account surplus, whereas tariff liberalization generates current account deficit.
Law in the shadow of bargaining: the feedback effect of civil settlements

Lawmakers, courts, and legal scholars often express concern with regard to civil settlements because settlement agreements withhold important information from the public. This Essay identifies, to the contrary, problematic issues involving the availability of information on non-representative settlements. The theoretical and empirical evidence presented in this Essay, demonstrates that, despite the widespread use of non-disclosure agreements, information on settlements is distributed both inside and outside legal communities, reaching actors through various channels including the oral culture in legal communities, specialized reporters, professional interest organizations, and media coverage. Moreover, information on private settlement agreements circulates more widely if the agreed compensation in a given settlement exceeds the expected value of the claim at trial. For example, professional organizations highlight novel settlements that are strategically important to lawyers, and special interest groups bring attention to extravagant settlements that are most likely to induce legislative action. The selective availability of information on outlier settlements increases the potential costs of settlement agreements. Individual settlement concessions make it harder for similarly situated defendants to deflect forthcoming claims. Ambitious trial lawyers will use prior settlements as minimum bargaining thresholds. Plaintiffs in future cases become more demanding and are more reluctant to accept settlements below what has been agreed to in prior, analogous settlements. Moreover, due to their non-coercive nature, settlements may frame the normative outlook on particular claims or disputes. Consequently, settlement trends may become normative benchmarks to judges and juries that seek to reinforce such valuations in settlement conferences or trials. The settlement dynamics identified in this Essay provide a novel inroad for possible research on the evolution of remedies and damages in various areas of law and presents a more refined perspective on mandatory disclosure statutes and other regulatory approaches to confidential settlements.
Markets, torts, and social inefficiency

We provide a model wherein oligopolists produce differentiated products that also have a safety attribute. Consumption of these products may lead to harm (to consumers and/or third parties), lawsuits, and compensation, either via settlement or trial. Firm-level costs reflect both safety investment and production activities, as well as liability-related costs. Compensation is incomplete, both because of inefficiencies in the bargaining process and (possibly) because of statutorily established limits on awards. We compare the market equilibrium safety effort and output levels to what a planner who is able to set safety standards, but takes the market equilibrium output as given, would choose.
Online Financial Information: Law and Technological Change*

Two contrasting narratives about the impact of the Internet on investors point to different responses by regulators: a narrative of empowerment suggests that regulators should encourage investors to make investment decisions for themselves. But a narrative of vulnerability suggests that these investors may not be able to use the information that is available, and may be at increased risk of loss. Regulators should aim to promote investor empowerment while taking due account of investor vulnerabilities. Three characteristics (immediacy, interactivity, and interjurisdictionality) distinguish online investment information from offline investment information and have implications for the regulation of online information.
The Policy Trajectory of United States Asteroid Deflection Planning

Recent scientific studies document how potential dangers posed by asteroid collisions with Earth have been previously underestimated. These findings are alarming given the prevailing trajectory of US asteroid deflection policy, characterized by uncritical reliance on scientifically questionable deflection methods, such as nuclear interception. Numerous intercollegiate policy debate contests provided the authors with opportunities to survey the relevant policy literature and test alternative proposals for asteroid deflection planning. This article translates the results of the interactive research, reflecting on the historical backdrop of the threat posed to the planet by near-Earth Objects (NEOs), considering the relative merits of proposed deflection policies, exploring the issue’s connection with ballistic missile defense debates, and finally offering a call to action.
Is Tax Avoidance Related to Firm Risk

ABSTRACT: We test whether tax avoidance strategies are associated with greater firm risk. We find that low tax rates tend to be more persistent than high tax rates and that measures of tax avoidanc...
Equity Portfolio Diversification

This study shows that U.S. individual investors hold under-diversified portfolios, where the level of under-diversification is greater among younger, low-income, less-educated, and less-sophisticated investors. The level of under-diversification is also correlated with investment choices that are consistent with over-confidence, trend-following behavior, and local bias. Furthermore, investors who over-weight stocks with higher volatility and higher skewness are less diversified. In contrast, there is little evidence that portfolio size or transaction costs constrains diversification. Under-diversification is costly to most investors, but a small subset of investors under-diversify because of superior information. Copyright 2008, Oxford University Press.
Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India ∗

Under the TRIPS agreement, WTO members are required to enforce product patents for pharmaceuticals. The debate about the merits of this requirement has been extremely contentious. Many low-income economies claim that patent protection for pharmaceuticals will result in substantially higher prices for medicines, with adverse consequences for the health and well-being of their citizens. On the other hand, research-based global pharmaceutical companies argue that prices are unlikely to rise significantly because most patented products have therapeutic substitutes. In this paper we empirically investigate the basis of these claims. Central to the ongoing debate is the structure of demand for pharmaceuticals in poor economies where, because health insurance coverage is so rare, almost all medical expense are met out-of-pocket. Using a detailed product-level data set from India, we estimate key price and expenditure elasticities and supply-side parameters for the fluoroquinolones sub-segment of the systemic anti-bacterials (i.e., antibiotics) segment of the Indian pharmaceuticals market. We then use these estimates to carry out counterfactual simulations of what prices, profits and consumer welfare would have been, had the fluoroquinolone molecules we study been under patent in India as they were in the U.S. at the time. Our results suggest that concerns about the potential adverse welfare effects of TRIPS may have some basis. We estimate that in the absence of any price regulation or compulsory licensing, the total annual welfare losses to the Indian economy from the withdrawal of the four domestic product groups in the fluoroquinolone sub-segment would be on the order of U.S. $450 million, or about 73% of the sales of the entire systemic anti-bacterials segment in 2000. Of this amount, foregone profits of domestic producers constitute roughly $50 million (or 11%). The overwhelming portion of the total welfare loss therefore derives from the loss of consumer welfare. In contrast, the profit gains to foreign producers in the absence of any price regulation are estimated to be only around $53 million per year.
Valuation and treatment of depletable resources in the national accounts

From the earliest times, as the bronze and iron ages testify, the extraction of natural resources for human use has been an important part of man’s relation to nature. At the very beginnings of American history, English explorers searched the New England coast for what Richard Haklyut, in his classic Discourse Concerning Western Planting of 1584, had called “merchantable commodities,” goods that were scarce in Europe and would pay the cost of transporting them across the ocean. 2/ In our own day, as a growing awareness of the human interaction with nature draws greater attention to its economic measurement, appropriate characterization of this relationship poses a significant challenge. As Carl Sauer wrote of soil and species destruction in 1938, “We have not yet learned the difference between yield and loot. We do not like to be economic realists.”3/
A Theory of WTO Adjudication: From Empirical Analysis to Biased Rule Development

The positive theory of litigation predicts that, under certain conditions, plaintiffs and defendants achieve an unremarkable and roughly equivalent share of litigation success. This Article, grounded in an empirical analysis of WTO adjudication from 1995 through 2007, reveals a high disparity between Complainant and Respondent success rates: Complainants win roughly ninety percent of the disputes. This disparity transcends Case Type, Party Identity, Income Level, and other litigant-specific characteristics. After analyzing and discarding standard empirical and theoretical alternative explanations for the systematic disparity in success rates, this study demonstrates, through an examination of patterns in WTO * Associate Professor of Law, Syracuse University College of Law; colares@law.syr.edu. During the 2008–09 academic year, Professor Colares is the inaugural Cornell Fellow on American and Comparative Law at the Conseil Constitutionnel, France’s Constitutional Court. He is working as a judicial clerk at the Conseil and is a Visiting Professor at the Ecole Normale Superieure in Paris. The author is grateful to Kevin Clermont and Ted Eisenberg for interviews and suggestions that greatly assisted the author’s research. The author bears sole responsibility for any remaining errors. Sarah Benczik, Paul Devendorf, and Carrie Lonsinger provided excellent research assistance. The Author also thanks participants at the July 2008 inaugural Society of International Economic Law Conference in Geneva, Switzerland, for helpful comments on an earlier draft of this article.
Excessive(?) entry of national telecom networks, 1990-2001

This paper documents entry and capacity expansion in US long-distance fiber-optic networks before and during the ''telecom boom.'' It disentangles the many swaps and leases between networks in order to measure owned route miles versus route miles shared with other carriers. Entry is still extensive, but more moderate when these shared miles are not counted. It concludes that entry was excessive primarily with regard to swaps and leases, but less so with regard to the physical building of the networks.
Foreign and Other Economic Rights Upon Conquest and Under Occupation: Iraq in Comparative and Historical Context

Even in cases of conquest, it is very unusual for the conquerer [sic] to do more than to displace the sovereign and assume dominion over the country. The modem usage of nations, which has become law, would be violated; that sense of justice and of right which is acknowledged and felt by the whole civilized world, would be outraged if private property should be generally confiscated, and private rights annulled .... 1
Diversifying State Supreme Courts

Why do some states diversify their supreme courts sooner than others? Using original data on the first black and female state supreme court justices, I contend that political and institutional pressures influence when states diversify their high courts. The results suggest that selection systems, institutions affecting turnover, and the appointment of political minorities to the United States Supreme Court are associated with states seating their first black and female justices. The findings have implications for our understanding of the political and institutional circumstances that promote judicial diversity.
Monetary Policy Does Matter: Control Causality and Superexogeneity

In this paper, the sufficiency of superexogeneity for control causality is exploited in the case of monetary policy and real output. The superexogeneity of the formulation of monetary policy for the real output gap is tested and found to be true implying a causal link from monetary policy to the real output gap. Given the empirical evidence, the Lucas Critique appears to be a theoretical possibility but not empirically relevant in this case. Copyright 2002 by Blackwell Publishing Ltd
Conditional Risk Mappings

We introduce an axiomatic definition of a conditional convex risk mapping and we derive its properties. In particular, we prove a representation theorem for conditional risk mappings in terms of conditional expectations. We also develop dynamic programming relations for multistage optimization problems involving conditional risk mappings.
Switching to bonds when loans are scarce: Evidence from four U.S. crises

Abstract To what extent do public firms switch to bonds when bank credit supply falls, and how do their real outcomes compare to those of other firms? Examining four U.S. crises during 1988–2011 shows that only 8.4% of debt-receiving firms broke their reliance on loans and switched to bonds. These were high quality firms that, despite incurring large costs, did not suffer significantly more in output, investment, and employment than predominantly bond-issuing firms. Most firms either received loans, or no debt, and fared significantly worse. Thus, public firms do not widely substitute bonds for loans, remaining vulnerable to bank health fluctuations.
Law School Education and Liberal CLE

By “liberal CLE” one means continuing legal education directed toward personal and intellectual broadening. Liberal CLE can compensate for the specialized character of law school education. It can also: (a) support important roles of lawyers not fully served through law school education; (b) support professional work of lawyers based in training received in law school; and (c) promote important professional values or support important non-professional activities. Liberal CLE, so designed, would advance the purposes of continuing legal education and help it contribute more effectively to a full and integrated system of lifelong education for lawyers. Continuing legal education, so broadened, would more fully and effectively support the professional work of lawyers and law school graduates, promote competence, and facilitate professional mobility.
Do International Trade Institutions Contribute to Economic Growth and Development

Proponents of trade liberalization routinely defend international trade institutions as engines of economic growth that benefit everyone. How trade proponents justify trade institutions matters because their justificatory rhetoric leads to certain policy conclusions about whether it is appropriate to link trade to environmental, labor, or human rights policies. This paper examines the theory and operation of international trade law and institutions and questions whether these institutions in fact promote economic growth as proponents claim. Neither neo-liberal economic theory nor empirical studies support the claim that international trade institutions promote economic growth. To the contrary, international trade institutions are internally inconsistent and may distort economic efficiency and result in negative growth under some circumstances. To the extent that international trade institutions have promoted economic growth, they have often contributed to a growing disparity of wealth within and between the industrialized and developing countries. Trade institutions like the WTO have succeeded in coordinating policies and resolving conflict through dispute-settlement, even if they do not necessarily promote significant economic growth. For this reason, it is entirely consistent with their policy-coordination function for these institutions to promote labor, human rights, and environmental standards.
Decoding and recoding natural monopoly, deregulation, and intellectual property

The paper examines a parallel between arguments in the deregulation movement to limit the scope of natural monopolies and arguments for limiting the scope of exclusivity for intellectual property. The first part of the paper examines natural monopoly regulation as a metaphor for understanding intellectual property drawing on arguments based on declining average costs of production and negligible marginal costs of distribution. The author concludes that while the cost arguments often surface as a justification for intellectual property, cost-based justifications do not offer a satisfactory basis for determining the scope of intellectual property rights. The second part of the paper turns to critiques of natural monopoly regulation and develops arguments from these critiques for limiting intellectual property rights. The paper concludes with three principles to guide intellectual property reform: (1) recognizing the role of the user in properly determining the value of intellectual property; (2) identifying the role of potential competition in determining the scope of intellectual property rights; and (3) recognizing the role of political economy in shaping the regulatory role of intellectual property.
On the Surprising Sufficiency of Linear Models for Dynamic Pricing with Demand Learning

We consider a multiperiod single product pricing problem with an unknown demand curve. The seller's objective is to adjust prices in each period so as to maximize cumulative expected revenues over a given finite time horizon; in doing so, the seller needs to resolve the tension between learning the unknown demand curve and maximizing earned revenues. The main question that we investigate is the following: How large of a revenue loss is incurred if the seller uses a simple parametric model that differs significantly i.e., is misspecified relative to the underlying demand curve? We measure performance by analyzing the price trajectory induced by this misspecified model and quantifying the magnitude of revenue losses as a function of the time horizon relative to an oracle that knows the true underlying demand curve. The "price of misspecification" is expected to be significant if the parametric model is overly restrictive. Somewhat surprisingly, we show under reasonably general conditions that this need not be the case. This paper was accepted by Gerard Cachon, stochastic models and simulation.
The Entrenched Kurtosis in Current Portfolio Returns

Abstract Responses of asset returns to indices introduce kurtosis in portfolio returns. Preoccupation with ‘tail-risk’ entails modeling portfolio exposure to second and fourth moment deviations around the mean return. For quadratic utility optimizers, kurtosis aversion could be viewed as either platykurtosis-seeking or leptokurtosis-aversion. The investor observes kurtosis and operates at a ‘prudent’ trade-off between it and variance, leading to abrupt adjustments. Combined risk tolerance mitigates his response, as weights are adjusted in comparison to rolling deviations of mean-variance portfolio returns from normality. Maintaining value through the crisis is achieved by abrupt changes in consistent kurtosis, and moderation once the latter become entrenched.
Picking Up the Gauntlet: How Individuals Respond to Status Challenges

How do people respond to status challenges? We suggest that responses depend on the relative status and genders of challenger and target. These variables affect appraisals about the status challenge (operationally defined as an act of incivility) and likely outcomes of various responses, and those appraisals proximately determine responses. Studies 1 and 2 show that male gender and high status were associated with more aggressive responses, whereas female gender and low status were associated with more avoidant responses. Study 3 shows that men's and women's responses were not perfectly antithetical: Men showed the greatest resistance toward peers, which may reflect greater sensitivity to status contests among men. Perceived legitimacy of challengers' actions and consequences affect the status–gender–response relationships.
From Eugenics to the “New” Genetics: “The Play's The Thing”

Genetics occupies a place in the public imagination with which few areas of science can compete. It is popularly understood to be the "science of life," concerned with the essence of humanity: a subject that generates both awe and fear. These divergent emotions are encapsulated in the "promise versus peril" debate: the promise of an end to human disease is countered by the peril embodied in the discriminatory capacity of genetic essentialism. This debate has become ingrained in popular culture, and its dramatic potential has been effectively realized in theatre. Plays have always been written and performed as expressions of social and cultural concerns. Drama is uniquely able to address salient issues and to manipulate the way they are perceived through characters with whom the audience identifies and sympathizes. In this way, theatre engages in a dialogue with public opinion and social policy. Plays are vehicles for exploring connections and parallels between eugenics and the "new" genetics, especially with respect to the role of women and their accountability for future generations.To illustrate this view, this article is structured in the format of a play. Act I explores how eugenic ideals influenced women protagonists within early twentieth century dramas. The intermission sets the stage for the convergence of the promise of emerging genetic technologies and the proliferation of civil rights movements. Act II then examines society’s embrace of the "new genetics" and how the promise and perils of this science have influenced society, especially the role of women. In analyzing these plays, this article aims to highlight the power of theatre to enhance our understanding of the complexities of the ethical, legal, and social implications of genetics.
Overreaction to Intra-industry Information Transfers?

Prior research has documented that earnings announcements provide information not only about the announcing firm but also about other firms in the same industry. We document a stock market anomaly associated with this phenomenon of intra-industry information transfers by showing that the stock price movements of late announcers in response to earnings reported by early announcers are negatively related to subsequent price responses of late announcers to their own earnings reports. Apparently, the stock market overestimates the intra-industry implications of early announcers' earnings for late announcers' earnings, and that overestimation is corrected when late announcers disclose their earnings.
How to sustain the Chinese economic miracle? The risk of unraveling the global rebalancing

This article investigates China's role in creating global imbalances and argues that the call for a massive renminbi revaluation as a (supposed) panacea is misguided. Apart from acting as a growth leader in the global recovery by boosting domestic demand to offset the slump in exports, China has successfully completed the first stage of rebalancing its economy. The second stage will consist of further strengthening private consumption. This will be best supported by continued reliance on renminbi stability and capital account management.
Information and Wasted Votes: A Study of U.S. Primary Elections

We study whether information leads voters and donors to "waste" fewer votes and donations on candidates who do not finish in first or second place. Examining U.S. primary elections featuring more than two candidates, we compare voting and contribution behavior across offices with varying levels of information. We find that voters and donors are more likely to support the top two candidates, and less likely to waste votes or donations on lesser candidates, when information levels are higher. In addition, we find that donors consistently act more "strategically" — i.e., waste fewer donations on lesser candidates — than voters. To supplement these analyses, we isolate the causal effect of information by leveraging adjacent U.S. counties that differ in their access to politically relevant information from the media. We again find that information helps voters avoid wasting votes on candidates who are unlikely to win. The results are relevant for understanding the behavior of voters and contributors, for understanding the role of information in elections, and for the evaluation of policies like runoff primaries designed to facilitate strategic voting outcomes.
The Concept of National Law and the Rule of Recognition

It is a commonly held position that a rule cannot be a legal rule unless it is binding; or to put it differently, that one element that distinguishes legal rules from other kinds of rules is that legal rules are regarded as binding by duly constituted officials - typically, courts - who are called upon to apply them. Similarly, it is an often-held position that the law consists of the rules of a jurisdiction that are duly enacted or adopted by officials who have the power to make rules that are binding in the jurisdiction. The thesis of this article is that both positions are incorrect. I begin by developing a concept that I call national law. The concept of national law is that there is a body of law in the United States that is made by officials across jurisdictions, legal scholars, and scholarly institutions, which constitutes law despite the fact that it is not binding in, and is not necessarily made by, officials of a deciding jurisdiction. Examples of national law are the rules that a donative promise is enforceable if relied upon, that an acceptance is effective on dispatch, and that the remedy for breach of a bargain contract is expectation damages. National law is law because, as I show, under the practice of the legal profession, particularly the courts, the rules of national law (and not simply the reasons for those rules) are invoked as legal rules of decision. Next, I take the concept of a rule of recognition as a postulate, and develop the following four principles concerning the meaning, application, and scope of that concept, which are independent of, but exemplified by, the concept of national law: (1) The social group that must accept a secondary rule for the rule to constitute a rule of recognition is the legal profession, rather than simply judges and other officials. (2) Whether the legal profession accepts a secondary rule as a rule of recognition can be determined by examining the kinds of primary rules that are invoked by the profession as legal rules in resolving legal issues in general, and deciding cases in particular. (3) A rule can be a legal rule even though it is not binding. (4) In the United States, law is made not only by judges and other officials of the deciding jurisdiction, but also by the national judiciary, legal scholars, and professional institutions (in particular, the American Law Institute).
Banking deregulation and credit supply: Distinguishing the balance sheet and the competition channels

Abstract This paper studies how interstate banking deregulation affects credit supply, focusing on distinguishing the balance sheet and bank competition channels. Using a regression discontinuity design, I find that interstate banking deregulation affects credit supply, not only by legally impacted commercial banks, but also by non-legally impacted non-bank lenders. Controlling for lender-year fixed effects to isolate the balance sheet effect, I find that credit supply by the same lender varies with interstate banking restrictions in different states. Overall, the results suggest that the impact of interstate banking deregulation is mostly driven by the bank competition channel.
Prioritization and Mutualization: Clearinghouses and the Redundancy of the Bankruptcy Safe Harbors

This Article argues for the repeal of the bankruptcy safe harbors for financial contracts because they are redundant systemic risk safeguards. Most systemically important types of financial contracts now clear through clearinghouses. Clearinghouses are a superior method to the safe harbors for protecting the liquidity of systemically important money substitutes and do not subordinate bankruptcy policy concerns to systemic risk concerns. Clearinghouses are a better guaranty against systemic disruption than the safe harbors because they can absorb the losses caused by insolvencies and fire sales due to their deep capital and lack of leverage. Moreover, clearinghouses reduce systemic risk by forcing internalization of systemic externalities on the finance industry through loss mutualization. This reduces the industrh4* incentive to engage in excessively risky transactions. And, in the event that losses overwhelm clearinghouses, they are technically and politically easier to bail out than individual firms when the safe harbors prove inadequate. Accordingly, this Article argues for the safe harbors to be replaced with a clearing mandate only for those types of highly liquid financial contracts that serve as money substitutes.
Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility

Using data from the National Longitudinal Survey of Youth 1979, this study examines the pattern of early career job mobility and migration in a sample of young male workers. Primary interest lies in the between-job wage change accompany- ing job transitions as well as the extended time-profile of migrant earnings. When the sample of job transitions is partitioned by education level, contemporaneous returns are found only for workers with twelve or less years of completed schooling. In contrast, highly educated workers demonstrate significant extended returns to migration with the bulk of pecuniary rewards accruing with a lag of nearly two years.
Undue Process: Congressional Referral and Judicial Resistance in the Schiavo Controversy

The congressional response to the Schiavo controversy was both extraordinary and feeble. It surely was exceptional in its speed and specificity. An Act for the Relief of the Parents of Theresa Marie Schiavd was introduced and approved within a weekend-just days after the feeding tube was removed from Schiavo's body, and only a month after her husband obtained a state court order for that purpose. The legislation, moreover, could not have been more targeted. The statute's content followed its title, granting certain litigation privileges to the parents and Schiavo alone. Congress had legislated in a one-case-only fashion before, of course. But private bills tend to resolve controversies. The Schiavo Act, even on its broadest conceivable reading, could do nothing to settle the dispute it addressed. It was meant to unsettle the situation, which the federal courts promptly refused to do. This kind of congressional action-dealing with a single private dispute and disrupting prior judicial conclusions without implementing new substantive law-is unlikely to recur with any frequency. The Act was more high drama than emerging model. And it is surprisingly difficult to tell whether the federal courts legitimately avoided a more thorough evaluation of the parents' claims. The constitutionality of the Act is open to good-faith dis-
Household Asset Allocation, Offspring Education, and the Sandwich Generation †

Abstract This paper finds households with children and elderly dependents, the “Sandwich Generation,” significantly reduce both college savings and stockholding. Having any elderly dependents decreases the probability of both stockholding and college savings by twice as much as poor personal health. Hence, these results have critical implications as they demonstrate the importance and magnitude of links between the pension system, college financial aid, and wealth accumulation. Elderly dependents limiting parental funds for offspring education can decrease offspring long-term earnings potential via decreased human capital accumulation. Furthermore, decreased stock holdings can decrease long-term wealth accumulation and thus intergenerational wealth transfers.
Why do some outside successions fare better than others? The role of outside CEOs' prior experience with board diversity

Research summary: We develop a theory to explain why new outside CEOs can better manage their relationship with the board if they previously served on boards that were more diverse than the focal board. We predict that a new outside CEO's prior experience with more diverse boards not only reduces the likelihood of post-succession CEO turnover and director turnover, but also improves firm performance. Results from an analysis of 188 outside CEOs in a sample of Fortune 500 companies provide support for our theory. This study contributes to upper echelon theory and research by identifying outside CEOs' prior experience with board diversity as an important aspect of their background that influences a range of major organizational outcomes, including CEO turnover, director turnover, and firm performance. Managerial summary: It is challenging to be a new CEO who comes from outside of the organization. Our study examines why some new outside CEOs fare better than others. We suggest that a positive relationship with the board of directors is a key factor in a new outside CEO's success. A new outside CEO can better manage the relationship with the board if he or she has prior experience working with other demographically diverse boards. In contrast, when the focal board is more diverse than the other boards on which the new CEO previously served, the new CEO tends to struggle in managing his or her relationship with the board, experiencing a higher likelihood of turnover and delivering worse financial performance. Copyright © 2015 John Wiley & Sons, Ltd.
The impacts of the “right to know”: Information disclosure and the violation of drinking water standards

Abstract Information disclosure regulations are increasingly common, but their effects on the behavior of regulated firms are unclear. The 1996 Amendments to the Safe Drinking Water Act mandated that community drinking water suppliers issue to customers annual consumer confidence reports (CCRs), containing information on violations of drinking water regulations and on observed contaminant levels. We examine the impact of mandatory information provision on drinking water violations by 517 community water systems in the Commonwealth of Massachusetts from 1990 to 2003. Results suggest that larger utilities required to mail CCRs directly to customers reduced total violations by between 30% and 44% as a result of this policy, and reduced the more severe health violations by 40–57%.
Sharpening the triangle inequality: envelopes between $L^{2}$ and $L^{p}$ spaces

Motivated by the inequality ∥f+g∥22≤∥f∥22+2∥fg∥1+∥g∥22, Carbery (2009) raised the question of what is the “right” analogue of this estimate in Lp for p≠2. Carlen, Frank, Ivanisvili and Lieb (2018) recently obtained an Lp version of this inequality by providing upper bounds for ∥f+g∥pp in terms of the quantities ∥f∥pp, ∥g∥pp and ∥fg∥p∕2p∕2 when p∈(0,1]∪[2,∞), and lower bounds when p∈(−∞,0)∪(1,2), thereby proving (and improving) the suggested possible inequalities of Carbery. We continue investigation in this direction by refining the estimates of Carlen, Frank, Ivanisvili and Lieb. We obtain upper bounds for ∥f+g∥pp also when p∈(−∞,0)∪(1,2) and lower bounds when p∈(0,1]∪[2,∞). For p∈[1,2] we extend our upper bounds to any finite number of functions. In addition, we show that all our upper and lower bounds of ∥f+g∥pp for p∈ℝ, p≠0, are the best possible in terms of the quantities ∥f∥pp, ∥g∥pp and ∥fg∥p∕2p∕2, and we characterize the equality cases.
Large-dimensional factor modeling based on high-frequency observations

Abstract This paper develops a statistical theory to estimate an unknown factor structure based on financial high-frequency data. We derive an estimator for the number of factors and consistent and asymptotically mixed-normal estimators of the loadings and factors under the assumption of a large number of cross-sectional and high-frequency observations. The estimation approach can separate factors for continuous and rare jump risk. The estimators for the loadings and factors are based on the principal component analysis of the quadratic covariation matrix. The estimator for the number of factors uses a perturbed eigenvalue ratio statistic. In an empirical analysis of the S&P 500 firms we estimate four stable continuous systematic factors, which can be approximated very well by a market and industry portfolios. Jump factors are different from the continuous factors.
When New Technologies Are Still New: Windows of Opportunity for Privacy Protection

Early intervention in the regulation of new technologies is highly controversial. In this Article, I seek to depolarize the early intervention debate and examine where timing becomes of the essence in the shaping of new technologies. At the outset, I reframe the debate in terms of social shaping in lieu of intervention. I focus the social shaping inquiry on the development of non-privacy norms among the Internet's commercial users in order to shed light on the timing quandary. Currently, over a decade after commercial entities started collecting personal information on the Internet, the law has not restricted these collection practices. Efforts at self-regulation have failed and Internet users overall have not adopted technological measures to protect their privacy. Empirical data shows an increase in the use of privacy threatening devices, such as cookies and spyware. The data shows that commercial non-privacy norms on the Internet have become entrenched among the Internet's commercial users. Three technological characteristics of the Internet appear to be at the crux of the fast diffusion of commercial non-privacy norms. These characteristics are: the Internet's critical mass point quality (and related network effects); its decentralized diffusion process; and the enablement of con-
Chandler and the Sociology of Organizations

I remember the first time I read Alfred Chandler's Strategy and Structure as a graduate student in the mid-1970s. I was taking a class on the sociology of organizations and finding that many of the assigned books and articles did not interest me. Corporations are clearly one of the dominant forces in our society, yet none of what I read seemed to capture what they do and how they do it. Reading the first eighteen pages of Strategy and Structure was like having the scales fall from my eyes. Here was a historical view of the largest corporations that placed them in their context and, most important, showed that real people with real purposes undertook to make these organizations work. Chandler's book opened the black box of the large modern corporation for me. Chandler realized that what was interesting about corporations was not that they made profits, but how they did so. In a single chapter, Chandler articulated much that I had found lacking in organizational theory.