cssi/SciSciGPT-SciSciNet huggingface dataset:
The War Against Ourselves: Heien v. North Carolina , the War on Drugs, and Police Militarization

Approximately fifty years ago, America declared a war against itself—the “War on Drugs.” Since then, our local and state police, armed with military weapons and federal funding, have fought tirelessly against “public enemy number one”—drugs. Not surprisingly, this war has created an atmosphere where it is now common to see police officers equipped with a mentality and armor that had previously only been seen in the dark-trenches of an international war zone. Worse yet, this battlefield mentality has leaked into almost every area of police-civilian encounters. As a “loyal foot solider” in the Executive’s War on Drugs, however, the Supreme Court has played an important role in the current state of affairs between police officers and citizens, most recently in its decision in Heien v. North Carolina, which held that an officer’s mistake of law can provide reasonable suspicion necessary to justify police intrusion into countless more citizens’ lives. Consequently, this Note takes a closer look at the consequences of allowing police mistakes of law to give rise to reasonable suspicion in the background of the War on Drugs and police militarization. In particular, this Note explores how recent Supreme Court
Contracts Meet Henry Ford

Legal scholars and legal educators view contracts as a welfare-maximizing (or optimal risk-allocating) device for two or more parties. Because we cling to this principal-driven paradigm, we think of lawyers only as the proverbial “transaction cost engineers,” the loyal agents of parties to a transaction. And whenever we observe contracts that appear to be suboptimal, we blame agency costs. We instead should apply the literature on organizational economics to understand the production of contracts by the modern law firm. This literature better illustrates how law firms organize, why they produce the products they do, and why those products sometimes exhibit strangely inefficient features. These inefficiencies are not the consequence of agency costs or a lack of attorneys’ fidelity to their clients; they instead illustrate the limits — and, indirectly, the strengths — of large organizations. Indeed, observing that legal products do not perfectly match contemporary needs might be no less provocative than observing that Detroit is long overdue to produce high-mileage cars.
'Those Who Know Most': Insider Trading in 18th c. Amsterdam

This paper studies how private information is incorporated into prices, using a unique setting from the 18 th century that, in many dimensions, is simpler and closer to stylized models of price discovery than modern-day markets. Speci…cally, the paper looks at a number of English securities that were traded in both London and Amsterdam. Relevant information about these securities originated in London and was sent to Amsterdam on board of o¢ cial mail packet boats. Anecdotal evidence suggests that these ships carried both public news and private information. They sailed only twice a week, and in adverse weather could not sail at all. The paper exploits periods of exogenous market segmentation to identify the impact of private information. The evidence is consistent with a Kyle (1985) model in which informed agents trade strategically. Most importantly, the speed of information revelation in Amsterdam depended on how long insiders expected it would take for the private signal to become public. As a result of this strategic behavior, private information was only slowly revealed to the market as a whole. This price discovery was economically important: private signals had almost as much impact on prices as public information shocks.
Corporate Tax Avoidance and High Powered Incentives

Abstract This paper analyzes the links between corporate tax avoidance and the growth of high-powered incentives for managers. A simple model demonstrates the role of feedback effects between tax sheltering and managerial diversion in determining how high-powered incentives influence tax sheltering decisions. A novel measure of corporate tax avoidance (the component of the book-tax gap not attributable to accounting accruals) allows for an investigation of the link between tax avoidance and incentive compensation. Increases in incentive compensation tend to reduce the level of tax sheltering, in a manner consistent with a complementary relationship between diversion and sheltering. In addition, this negative effect is driven primarily by firms with relatively weak governance arrangements, confirming a central prediction of the model. These results can help explain the growing cross-sectional variation among firms in their levels of tax avoidance, the undersheltering puzzle, and why large book-tax gaps are associated with subsequent negative abnormal returns.
Summary Judgment: What We Think We Know versus What We Ought to Know

The twenty-fifth anniversary of the “trilogy” of summary judgment cases provides a perfect moment to reflect on what summary judgment means to our civil justice system. However, it goes without saying that summary judgment is not one of those procedural topics that has received little attention. Indeed, it is an area of procedure that has produced heated debates, plenty of press, and volumes of law review articles.1 So, this is not a little-studied area that only gets discussed on these landmark occasions. This leads to the following inquiry: What more can really be written about a topic that appears to be so saturated? It is a good question, but I, and many others, including the participants in this Colloquium, believe that there is much more work to be done. However, while we might agree on the need for further work, our reasons for holding this belief undoubtedly diverge. My reason flows from the observation that what has been done so far, while making an important contribution, does not begin to tell us what the true effect of summary judgment is on potential and actual litigants. Empirical work in the area of summary judgment tells us a lot about how measured filing rates and grant rates for summary judgment motions have increased or decreased over time.2 We also have a breadth of academic work that discusses the advantages of the process—namely, efficiency and the correlated cost-savings.3 There is
Applying New Rhetoric to Legal Discourse: The Ebb and Flow of Reader and Writer, Text and Context

Applying New Rhetoric to law school pedagogy, this article suggests an ebb and flow of reader and writer, text and context drawn from New Rhetoric theory, research, and teaching practices. Almost all legal writing scholarship now focuses on some aspect of New Rhetoric. Yet it is likely that the product approach still prevails in the places where the papers are graded, in part because it is the more familiar and straightforward way that papers have always been graded. What follows is an initial attempt to more fully apply New Rhetoric theory and research to the teaching of legal reading and legal writing. The overall goal of the teaching practices described in the article is to encourage students to view their early readings and writings as tentative drafts that are open to change; to build in pauses when the student-as-reader or the student-as-writer can reflect on current meanings, goals, and plans; and to give students contextually based rhetorical choices to move forward. The article includes advice on reading reflectively, as expert readers do; on writing reflectively, by keeping a reflective journal; on planning in writing, through the zero draft; and on the many phases of revision, including the use of peer writing and reading groups.
An Empirical Inquiry into the Relation of Corrective Justice to Distributive Justice

We report the results of three experiments examining the long-standing debate within tort theory over whether corrective justice is independent of, or parasitic on, distributive justice. Using a “hypothetical societies” paradigm that serves as an impartial reasoning device and permits experimental manipulation of societal conditions, we first tested support for corrective justice in a society where individual merit played no role in determining economic standing. Participants expressed strong support for a norm of corrective justice in response to intentional and unintentional torts in both just and unjust societies. The second experiment tested support for corrective justice in a society where race, rather than individual merit, determined economic standing. The distributive justice manipulation exerted greater effect here, particularly on liberal participants, but support for corrective justice remained strong among nonliberal participants, even against a background of racially unjust distributive conditions. The third experiment partially replicated the first experiment and found that the availability of government-funded insurance had little effect on demands for corrective justice. Overall, the results suggest that while extreme distributive injustice can moderate support for corrective justice, the norm of corrective justice often dominates judgments about compensatory duties associated with tortious harms.
Regional income redistribution and risk sharing: how does Italy compare in Europe?

Abstract This paper investigates income redistribution and risk sharing and the underlying public policy in Italy, a country marked by stark regional economic contrasts. Unlike previous works, this study also assesses the roles of public consumption, investment, and welfare assistance in kind. The findings suggest that Italy’s fiscal system provides redistribution at 25–35% and risk sharing at 10–15% of GDP, with public consumption playing a large role. Compared with results in the literature for other countries, there appears to be less redistribution and risk sharing through Italy’s welfare and tax systems because of their different structures.
Protective plant immune responses are elicited by bacterial outer membrane vesicles.

Summary Bacterial outer membrane vesicles (OMVs) perform a variety of functions in bacterial survival and virulence. In mammalian systems, OMVs activate immune responses and are exploited as vaccines. However, little work has focused on the interactions of OMVs with plant hosts. Here, we report that OMVs from Pseudomonas syringae and P. fluorescens activate plant immune responses that protect against bacterial and oomycete pathogens. OMV-mediated immunomodulatory activity from these species displayed different sensitivity to biochemical stressors, reflecting differences in OMV content. Importantly, OMV-mediated plant responses are distinct from those triggered by conserved bacterial epitopes or effector molecules alone. Our study shows that OMV-induced protective immune responses are independent of the T3SS and protein, but that OMV-mediated seedling growth inhibition largely depends on proteinaceous components. OMVs provide a unique opportunity to understand the interplay between virulence and host response strategies and add a new dimension to consider in host-microbe interactions.
Inverting the viability test for abortion law.

The abortion controversy is likely to become even more pressing with the development of technological advancements that enhance the chances for fetal survival of the abortion procedure. This essay explores the consequences of recognizing that keeping the fetus alive does not depend on keeping the fetus in utero.
The Myth of a Color-Blind Constitution

In the frenzied rush to stamp out affirmative action in all of its manifestations, courts and legislatures are losing sight of fundamental realities. A key weapon in the destruction of affirmative action is the myth that the Constitution requires a color-blind approach to all but a very narrowly excepted class of race-based problems. Indeed, if the trend in recent state referenda cases continues, we soon will have the mythical color-blind Constitution that Justice Harlan first described in his dissenting opinion in Plessy v. Ferguson. In Plessy, Justice Harlan stated that "[o]ur Constitution is color-blind, and neither knows nor tolerates classes among citizens." The adoption of Harlan's color-blind interpretation of the Constitution would almost certainly eliminate race-based protections and benign racial preferences as unconstitutional. This Article advocates that courts and legislatures should not read the Constitution as a color-blind document. The Framers never intended to create a color-blind Constitution, nor would such a Constitution accurately reflect the social norms and mores of contemporary American society. Accordingly, this author believes that government institutions should not use the myth of a color-blind Constitution to perpetuate the racial problems of a society that itself has failed to reach color-blind status. Part II of this Article examines the United States Constitution, as drafted and amended by the Bill of Rights, to show that the Framers never intended the Constitution to be a color-blind document. Additionally, Part II discusses the Reconstruction Amendments in an effort to demonstrate that Congress passed on the opportunity to render the Constitution truly color-blind and instead adopted the lesser standard of equal protection, which explicitly rejects non-discrimination. Part III examines the modern cases in which the Supreme Court often failed to develop a majority opinion, but delineated the level of scrutiny appropriate to race-based remedial measures. Part IV examines Adarand Constructors, Inc. v. Pena, in which the Court depended in part on the color-blindness theory for dismantling an affirmative action program. Part V argues that some form of race-based affirmative action is still needed and is constitutionally defensible. It also argues that, in today's society, race is an appropriate proxy both for diversity and for the status of a "victim of discrimination." This Article concludes that there are compelling state interests in maintaining affirmative action programs in academia, that affirmative action programs can be narrowly tailored, and that race-neutral alternatives are not practicable.
Credit lines and leverage adjustments

Abstract Adjustment costs play a prominent role in explanations of capital structure, but the extent of their economic importance is unknown. A credit line has institutional features important for this analysis, notably its sunk costs of access to the debt market, its revolving nature, and its covenant-sourced contingent nature. I find that the credit line is associated with cross-sectional variation in estimated speeds of adjustment to target leverage in patterns consistent with the importance of adjustment costs, and with the importance of maintaining financial flexibility for liquidity and investment needs.
DYNAMICS OF RETAIL ADVERTISING: EVIDENCE FROM A FIELD EXPERIMENT

We use a controlled field experiment to investigate the dynamic effects of retail advertising. The experimental design overcomes limitations hindering previous investigations of this issue. Our study uncovers dynamic advertising effects that have not been considered in previous literature. We find that current advertising does affect future sales, but surprisingly, the effect is not always positive; for the firm’s best customers, the long-run outcome may be negative. This finding reflects two competing effects: brand switching and intertemporal substitution. We also find evidence of cross-channel substitution, with the firm’s best customers switching demand to the ordering channel that corresponds to the advertising. (JEL L2, L81, M3) A firm’s current advertising is generally associated with an increase in its sales, but this effect is generally short-lived.
Does Insider Trading Impair Market Liquidity? Evidence from IPO Lockup Expirations

We test the hypothesis that insider trading impairs market liquidity by analyzing intraday trades and quotes around 1,497 IPO lockup expirations in the period 1995-1999. We find that, while lockup expirations are associated with considerable insider trading for some IPO firms, they have little effect on effective spreads. By contrast, two other liquidity measures, quote depth and trading activity, improve substantially. In the 23% of lockup expirations where insiders disclose share sales, spreads actually decline. These findings indicate that a large body of well-informed, blockholding insider traders can enter a market from which they had previously been absent, and substantially change trading volume and share price without impairing market liquidity.
African Women and Power: Reflections on the Perils of Unwarranted Cosmopolitanism

As we embark on the journey of stimulating the flows of new and different, critical and timely intellectual ideas in this maiden issue of Jenda, I suggest that we look both to the past and future. From the past, we consider the record of victories won, gains made, and challenges that continue to move us to action. In the future lies the possibility of making change through the inspirational force of ideas, the mobilizational impetus of action that points out the shortcomings of the past and present, and provides worthwhile alternatives. It is an exciting new day. Given the optimism that I have for the future, the perilous and unwarranted cosmopolitanism of African women scholars and activists is uppermost in my mind. I bring up this issue as opposed to any other because of the changes and developments that are afoot in this new, global world. As with any new phenomenon, globalization presents numerous possibilities of benefits to humanity. It also challenges us in a myriad of ways.
New evidence on the incremental information content of earnings reported using the LIFO inventory method

Abstract This study extends prior research by comparing the relative information quality of LIFO earnings and non-LIFO earnings using updated data and methodology. Results suggest LIFO earnings are incrementally informative independent of tax reporting implications. In addition to shedding light on why the results of prior studies present conflicting evidence about the relative information content of LIFO, these findings are important in light of international accounting standards convergence efforts, under which LIFO is currently prohibited.
From K Street to Wall Street: Political Connections and Stock Recommendations

ABSTRACT: In this study, we examine whether sell-side security analysts gain access to value-relevant information through political connections. We measure analysts' political connections based on political contributions at the brokerage-house level. We argue that if brokerages are able to obtain private information through their political connections, then analysts at politically connected brokerages should issue more profitable stock recommendations, and this increased profitability should be more pronounced for politically sensitive stocks. Our evidence is consistent with these predictions. Analyses of recommendations issued surrounding the Affordable Care Act further support our main inferences. Moreover, our findings hold after we employ numerous tests to address correlated omitted variables and endogeneity. Collectively, these results suggest that brokerages obtain value-relevant, nonpublic information from their political connections. JEL Classifications: G24; G38; G14.
Learning to sample: counting with complex queries

We study the problem of efficiently estimating counts for queries involving complex filters, such as user-defined functions, or predicates involving self-joins and correlated subqueries. For such queries, traditional sampling techniques may not be applicable due to the complexity of the filter preventing sampling over joins, and sampling after the join may not be feasible due to the cost of computing the full join. The other natural approach of training and using an inexpensive classifier to estimate the count instead of the expensive predicate suffers from the difficulties in training a good classifier and giving meaningful confidence intervals. In this paper we propose a new method of learning to sample where we combine the best of both worlds by using sampling in two phases. First, we use samples to learn a probabilistic classifier, and then use the classifier to design a stratified sampling method to obtain the final estimates. We theoretically analyze algorithms for obtaining an optimal stratification, and compare our approach with a suite of natural alternatives like quantification learning, weighted and stratified sampling, and other techniques from the literature. We also provide extensive experiments in diverse use cases using multiple real and synthetic datasets to evaluate the quality, efficiency, and robustness of our approach.
Is Corporate Social Responsibility (CSR) Associated with Tax Avoidance? Evidence from Irresponsible CSR Activities

ABSTRACT: We examine the empirical association between corporate social responsibility (CSR) and tax avoidance. Our findings suggest that firms with excessive irresponsible CSR activities have a higher likelihood of engaging in tax-sheltering activities and greater discretionary/permanent book-tax differences. Moreover, at the onset of FASB Interpretation No. 48, these firms have more uncertain tax positions; also, these firms' initial tax positions are likely supported by weaker facts and circumstances as indicated by their larger post-FIN 48 settlements with tax authorities and their higher likelihood of a net decrease in the overall level of uncertain tax positions after FIN 48. Collectively, these results suggest that firms with excessive irresponsible CSR activities are more aggressive in avoiding taxes, lending credence to the idea that corporate culture affects tax avoidance. Data Availability: Data are available from public sources identified in the study.
On dynamic measures of risk

In the context of complete financial markets, we study dynamic measures of the form \[ \rho(x;C):=\sup_{\nu\in\D} \inf_{\pi(\cdot)\in\A(x)}{\bf E}_\nu\left(\frac{C-X^{x, \pi}(T)}{S_0(T)}\right)^+, \] for the risk associated with hedging a given liability C at time t = T. Here x is the initial capital available at time t = 0, ${\cal A}(x)$ the class of admissible portfolio strategies, $S_0(\cdot)$ the price of the risk-free instrument in the market, ${\cal P}=\{{\bf P}_\nu\}_{\nu\in{\cal D}}$ a suitable family of probability measures, and [0,T] the temporal horizon during which all economic activity takes place. The classes ${\cal A}(x)$ and ${\cal D}$ are general enough to incorporate capital requirements, and uncertainty about the actual values of stock-appreciation rates, respectively. For this latter purpose we discuss, in addition to the above “max-min” approach, a related measure of risk in a “Bayesian” framework. Risk-measures of this type were introduced by Artzner, Delbaen, Eber and Heath in a static setting, and were shown to possess certain desirable “coherence” properties.
Can Contractualism Save Us from Aggregation

This paper examines the efforts of contractualists to develop an alternative to aggregation to govern our duty not to harm (duty to rescue) others. I conclude that many of the moral principles articulated in the literature seem to reduce to aggregation by a different name. Those that do not are viable only as long as they are limited to a handful of oddball cases at the margins of social life. If extended to run-of-the-mill conduct that accounts for virtually all unintended (in the sense of undesired) harm to others—noncriminal activities that impose some risk of harm on others—they would rule out all action. Moreover, because such conduct poses an irreducible conflict between freedom of action and freedom from expected harm, it can be regulated only by principles that accept the necessity of making precisely the sorts of interpersonal trade-offs that contractualism is foundationally committed to reject: trade-offs in which the numbers count, such that a risk of serious harm to one person can be justified by small benefits to the many.
The Impact of "Going Private" on Corporate Stakeholders

Some scholars and public policy experts believe that concern for such stakeholders should not hold any relevance in the discussion of corporate law in general, and thus may be presumed to believe the same about a conversation about privatization. As capital markets in the United States increasingly “go private,” there are a number of implications of this trend that have yet to be decisively analyzed. It is unclear how the retreat of companies from public capital markets will affect corporate governance, business competitiveness, and public oversight. It is also unclear how the privatization of corporate finance will affect non-shareholder stakeholders of firms, most centrally employees, communities, and the environment.
The Business and Ethics of Laying Hens: California's Groundbreaking Law Goes into Effect on Animal Confinement

In the United States, most laying hens are routinely subjected to cruel treatment and forced to live in such extreme confinement that they are unable to fully extend their limbs or turn around. In 2008, California took a stand against these inhumane practices by enacting the Prevention of Farm Animal Cruelty Act, also known as Proposition 2, which banned the use of inordinately small “battery cages” to house laying hens. In 2010, California passed an amendment to Proposition 2, requiring all eggs sold within California, regardless of where they are produced, to comply with the new law. Other states have followed California’s lead, passing and implementing state laws that begin to offer some minimal protection to laying hens and other farm animals. The vast majority of states, however, have not followed suit and federal legislation provides abysmally little protection for these animals. This Article argues that there is an ethical obligation—and there should be a legal obligation—to ensure the humane treatment of farm animals. This Article goes on to suggest a framework for new federal legislation to govern the confinement and humane treatment of farm animals.
Proto-property in literary and artistic works: Sixteenth century papal printing privileges

This Study endeavors to reconstruct the Vatican’s precursor system of copyright, and the author’s place in it, inferred from examination of over five hundred privileges and petitions and related documents—almost all unpublished—in the Vatican Secret Archives.
The Shadow of the Rational Polluter: Rethinking the Role of Rational Actor Models in Environmental Law

Many of the central doctrinal and policy debates in American environmental law rest, fundamentally, on disagreements over a single empirical question: what motivates firms in their interactions with the environmental regulatory system? The traditional view sees firms as "rational polluters" - self-interested economic and political actors, whose rational pursuit of their self-interest guides both their compliance decisions and their attempts to influence policy. To induce compliance, then, environmental enforcement must aim to deter violations through the imposition of penalties; likewise, to prevent firms from capturing the regulatory process, regulation must rely on prescriptive rules and must eschew informal or ad hoc policymaking methods. Reformers, on the other hand, challenge the traditional view. They look at that same deterrence- and rule-based environmental regime and see a complex, "ossified" system that often makes compliance difficult and impractical, and conclude that much noncompliance with environmental regulation is inadvertent. For these reasons, reformers advocate a more cooperative and collaborative, and less adversarial and punitive, regulatory process. The conflict between these two views casts a long shadow over American environmental regulation. This article has three objectives. First, it traces the numerous and sometimes elusive connections between current doctrinal and policy debates in environmental law (debates over civil and criminal enforcement as well as regulatory reform) and their common root, this question of the accuracy and validity of the rational polluter model. Second, it examines the latest thinking and evidence on this question from legal and social science scholarship, and concludes that the traditional view fails to explain the behavior of many regulated firms. Finally, it argues (using evidence from behavioral psychology and elsewhere) that over-reliance on the rational polluter model may pose a long-term risk to the legitimacy of the American regulatory system, particularly if it fails to meet the expectations of the political moderates.
Pay Now, Execute Later: Why Counties Should Be Required to Post a Bond to Seek the Death Penalty

When death sentences are reversed - and many of them are reversed for prosecutorial misconduct, ineffective assistance of counsel, and other reasons - local prosecutors are not forced to fully internalize the costs of their failed prosecutions. While counties make the decision to seek the death penalty, they do not have to fund the very expensive appellate and post-conviction stages of capital cases that are typically handled by state attorneys general's offices. This paper proposes that state legislatures could improve the functioning of the death-penalty system, while simultaneously acting out of financial self-interest, by requiring counties to post (and possibly forfeit) a bond to seek the death penalty. Faced with the prospect of losing a bond if the capital prosecution fails at trial or on appeal, local prosecutors would have an incentive to choose their capital cases more carefully and to avoid any type of misconduct that might lead to reversal on appeal. The prospect of forfeiting a bond also would create secondary benefits, such as encouraging prosecutors to protest the appointment of unqualified defense lawyers in order to stave off ineffective assistance of counsel claims. As a financial matter, the bond proposal should be appealing to state legislators because it would shift the exorbitant costs of failed capital prosecutions away from state budgets and into the hands of the county actors who instigated the failed prosecutions.
Psychology Models of Management Accounting

1. Introduction. 2. Organizing Framework. 3. Valuation of Monetary Payoffs. 4. Valuation of Non-Monetary Payoffs. 5. Models of Decision Structure, Variable and Relation-Form Choice. 6. Models of Parameter and Variable Acquisition and Subjective Estimation. 7. Conclusions. References.
System Dynamics: Toward a Language of Comparative Law

Goals and methods define intellectual disciplines and the communities associated with those disciplines. "Where are we going?" and "How can we get there?" are central questions that structure such communities and their activities.1 The two questions are, or should be, related. Presumably at least, those within the community assume that what they are doing will actually lead to where they want to go. Yet what happens when there is a disjuncture between goals and methods when there are incentives to achieve new objectives, but the tools that have been fashioned to achieve existing objectives have little relevance to the new goals? I suggest in this essay that this is what has happened in comparative law a developmental disjuncture has occurred in the relationship between objectives and methods.2 Certain "traditional" objectives of those thinking about and using comparative law have shaped its current methods, but new objectives have emerged and others have become more pressing, and current methods often have limited value for achieving them. Focusing on the analytical and cognitive aspects of this disjuncture may, therefore, lead us to more effective strategies for responding to it. The lack of a language of comparative law symbolizes and thematizes the situation of comparative law. Comparative law has no language! It can point to a small set of specialized nouns as its own, but nouns do not make a language. A language develops where members of a community seek to explain aspects of the data or reality with which they deal.3 Physics has a language; sociology has perhaps
Is Sound Just Noise

We analyze the information content of the ambient noise level in the Chicago Board of Trade’s 30-year Treasury Bond futures trading pit. Controlling for a variety of other variables, including lagged price changes, trading volumes, and news announcements, we find that the sound level conveys information which is highly economically and statistically significant. Specifically, changes in the sound level forecast changes in the cost of transacting. Following a rise in the sound level, prices become more volatile, depth declines, and information asymmetry increases. Our results offer important implications for the future of open outcry and f loorbased trading mechanisms. FOR MOST OF HISTORY, MANKIND HAS RELIED on face-to-face interaction to convey information between individuals. The past two thousand years have witnessed a secular trend away from this face-to-face interaction. This trend has been aided by a variety of technological advances which help relax the constraints of geography, including the development of smoke signals, paper, moveable type, the telephone, and, of course, the modern computer. The evolution of financial market operation has mirrored the overall trend away from face-to-face human interaction. For instance, during the past two hundred years, the New York Stock Exchange ~NYSE! has introduced a steady stream of technological advances that allow traders to participate in its market from greater distances, including the telegraph ~1840s!, the stock ticker ~1867!, the telephone ~1878!, the pneumatic tube system ~1918!, radio paging ~1966!, designated order turnaround system ~DOT !~ 1976!, and wireless devices ~1996!. In this paper, we use the financial market setting to address a question confronted by sociologists and exchange presidents alike: How important is face-to-face human interaction? We ask whether the face-to-face interaction characteristic of floor-based and open outcry trading systems plays a vital and irreplicable role in the price-setting process, or whether it is merely an anachronism in the modern financial landscape.
The Legal World Is Flat: Globalization and Its Effect on Lawyers Practicing in Non-Global Law Firms

Pulitzer Prize winning journalist Thomas Friedman has stimulated and changed the popular dialogue in the United States about globalization. His best-selling books The Lexus and the Olive Tree and The World is Flat have added new vocabulary to the U.S. lexicon, with phrases such as the “flattening” of the globe and Globalization 1.0, 2.0 and 3.0 now being used regularly. Numerous examples illustrate the terms’ widespread use in legal scholarship and practice. To illustrate the impact of Friedman’s work, Mary Daly and Carole Silver recently wrote an article about the offshore outsourcing of legal services (primarily to India) in which they explained that the purpose of their article was to “ask whether the market for these [legal] services is ‘flattened’ by globalization in the same ways described
Strategic Communication for Capacity Alignment with Pricing in a Supply Chain

We study a supply chain comprised of a retailer who sources a product from a manufacturer. The retailer has superior forecast information about market demand, and the manufacturer builds the capacity and sets the wholesale price prior to demand realization. We explore forecast information sharing between the retailer and the manufacturer by means of cheap talk. We show that meaningful forecast information can be shared truthfully only before the manufacturer sets both the capacity and the wholesale price. By sharing the demand forecast with the manufacturer, the retailer faces the trade-offs between inflating the forecast to convince the manufacturer to increase capacity and deflating the forecast to persuade the manufacturer to offer a lower wholesale price. When the value of forecast information sharing is high, the trade-offs are balanced, and incentives are aligned, leading to truthful information sharing. Moreover, we find that larger demand uncertainty can promote credible information sharing and, s...
Why It Is Essential to Teach About Mental Health Issues in Criminal Law (And a Primer on How To Do It)

Studies consistently show a high prevalence of mental disorders among criminal defendants. Forensic mental health issues thus arise frequently in the criminal justice system and are commonly encountered by prosecutors, defense attorneys, and judges—much more so than some criminal law doctrines (e.g., necessity, duress, impossibility) routinely taught in criminal law courses. Yet rarely are students taught about mental illness, how to represent mentally ill clients, adjudicative competence, the mental health needs of various offender groups and how these unmet needs may contribute to criminal behavior, or the use of mental health mitigation evidence at sentencing. If taught at all, such topics are only part of a survey course in mental health law. Forensic mental health issues should be an integral part of the criminal law curriculum, beginning with the first-year criminal law course. This Article presents recommendations for teaching mental health issues in first-year criminal law, presents empirical data indicating that first-year students have mixed, though generally positive, reactions to incorporating such non-traditional content into the course, and provides a syllabus for an upper-level course in criminal law and psychology. Incorporating mental health topics into the traditional criminal law curriculum is part of the ongoing trend in legal education towards expanding pedagogy beyond legal doctrine into relevant social science disciplines that can inform legal policy and students’ understanding of the criminal justice system, perhaps more so than many of the doctrinal lessons we now teach.
Criminal Corruption: Why Broad Definitions of Bribery Make Things Worse

Although the law of bribery may look profoundly under-inclusive, the push to expand it usually should be resisted. This article traces the history of two competing concepts of bribery—the “intent to influence” concept (a concept initially applied only to gifts given to judges) and the “illegal contract” concept. It argues that, if taken literally and applied to officials other than judges, “intent to influence” is now an unthinkable standard. The article defends the Supreme Court’s refusal to treat campaign contributions as bribes in the absence of an “explicit” quid pro quo and its refusal to read a statute criminalizing deprivations of “the intangible right of honest services” as scuttling the quid pro quo requirement. While recognizing that the “stream of benefits” metaphor can be compatible with this requirement, it cautions against allowing the requirement to degenerate into a “one hand washes the other” or “favoritism” standard. The article maintains that specific, ex ante regulations of the sort commonly found in ethical codes and campaign finance regulations provide a better way to limit corruption than bribery laws, but it warns that even these regulations should not prohibit all practices that may be the functional equivalent of bribery. The article concludes by speculating about whether the efforts of federal prosecutors to reduce corruption over the past 60 years have given us better government. I. THE CORRUPTION DILEMMA The scholarship of Zephyr Teachout and Lawrence Lessig has reminded us of the classic definition of corruption. Corruption in its classic sense describes something that has become impure or perverted. In Aristotle’s words, “The true forms of government . . . are those in which [rulers] * Julius Kreeger Professor of Criminal Law and Criminology, Emeritus, the University of Chicago. 1 See ZEPHYR TEACHOUT, CORRUPTION IN AMERICA: FROM BENJAMIN FRANKLIN’S SNUFF BOX TO CITIZENS UNITED 9, 38, 39, 41 (2014); Zephyr Teachout, The AntiCorruption Principle, 94 CORNELL L. REV. 341 (2009); LAWRENCE LESSIG, REPUBLIC, LOST: HOW MONEY CORRUPTS CONGRESS—AND A PLAN TO STOP IT 15-20, 230-47 (2011); Lawrence Lessig, What an Originalist Would Understand “Corruption” to Mean, 102 CAL. L. REV. 1 (2014); “Corruption,” originally, http://ocorruption.tumblr.com (undated: “a blog collecting every use of the term ‘corruption’ among the records of the Framers. Submitted to the Supreme Court as an appendix to an amicus brief by Lawrence Lessig for the Constitutional Accountability Center”). 2 See Richard Mulgan, Aristotle on Legality and Corruption, in CORRUPTION: EXPANDING THE FOCUS 25 (Manuhuia Barcham, Barry Hindess, and Peter Lamour, eds.,
Well, Should They? A Response to If People Would be Outraged by Their Rulings, Should Judges Care?

In at least some hard cases, the Justices of the United States Supreme Court almost certainly moderate their decisions or avoid deciding altogether so as not to provoke the public. Cass Sunstein's characteristically insightful and engaging article is an attempt to justify this practice, and in the process, to define its proper limits. In this, Sunstein follows in the footsteps of Alexander Bickel, whose pathbreaking The Least Dangerous Branch1 was devoted to the
Preference Monotonicity and Information Aggregation in Elections

I analyse informational e¢ ciency of two-alternative elections where the utility of the voters depends on the realisation of an uncertain, binary state variable about which voters receive an independent, noisy signal. I show that large elections aggregate information e¢ ciently for any voting rule in the unique equilibrium if and only if the set of voters who favour an alternative in one state includes the set which favours the same alternative in the other state. I call this the preference monotonicity condition. If preference monotonicity fails, we have two groups of voters such that a change in state induces their rankings to change in opposite ways; and I term this phenomenon as preference reversal. Under preference reversal, for large classes of voting rules we have equilibria (
Customer-Base Concentration, Profitability, and the Relationship Life Cycle

ABSTRACT: Using a recently expanded dataset on supplier-customer links, we introduce a dynamic relationship life-cycle hypothesis. We hypothesize that the relation between customer-base concentration and profitability is significantly negative in the early years of the relationship, but becomes positive as the relationship matures. The key driver of this dynamic is the customer-specific investments that the relationship entails. These investments result in larger fixed costs, greater operating leverage, and a higher probability of losses early in the relationship, but can significantly benefit the firm as the relationship matures. Although many of these money-losing firms in early-stage relationships were not studied in Patatoukas (2012), we find a market reaction to increases in customer concentration similar to that in his paper. This result provides powerful confirmatory evidence of the value of customer concentration. We document one of the intangible benefits of customer concentration, technology sha...
Information Technology and Patient Health: Analyzing Outcomes, Populations, and Mechanisms

We study the effect of hospital adoption of electronic medical records (EMRs) on health outcomes, focusing on patient safety indicators. We link data on hospital-level EMR adoption from the Healthc...
SPECIFICATION TEST FOR MISSING FUNCTIONAL DATA

Economic data are frequently generated by stochastic processes that can be modeled as realizations of random functions (functional data). This paper adapts the specification test for functional data developed by Bugni, Hall, Horowitz, and Neumann (2009, Econometrics Journal12, S1–S18) to the presence of missing observations. By using a worst case scenario approach, our method is able to extract the information available in the observed portion of the data while being agnostic about the nature of the missing observations. The presence of missing data implies that our test will not only result in the rejection or lack of rejection of the null hypothesis, but it may also be inconclusive.Under the null hypothesis, our specification test will reject the null hypothesis with a probability that, in the limit, does not exceed the significance level of the test. Moreover, the power of the test converges to one whenever the distribution of the observations conveys that the null hypothesis is false.Monte Carlo evidence shows that the test may produce informative results (either rejection or lack of rejection of the null hypothesis) even under the presence of significant amounts of missing data. The procedure is illustrated by testing whether the Burdett–Mortensen labor market model is the correct framework for wage paths constructed from the National Longitudinal Survery of Youth, 1979 survey.
Cooperation with Securities Fraud

Secondary actors, such as lawyers, accountants, and bankers, are oftentimes critical players in securities fraud. The important question of their liability to private plaintiffs has been, and remains, one of considerable confusion. In Stoneridge Inv. Partners LLC v. Scientific-Atlanta, Inc., the U.S. Supreme Court could have, but failed to, dispel some of this confusion. Contrary to the common understanding, Stoneridge did not foreclose liability on the part of secondary actors who manage to remain anonymous participants in securities fraud. Read carefully, Stoneridge instead held that proximity to fraud should drive the liability determination. Although "proximity" is itself an indefinite concept, we are not without tools in deciphering it. For we have at our disposal a well-developed, longtested method of analyzing proximity with an eye toward the just imposition of culpability: moral theology's "principles of cooperation." By turning to these principles, we have at our fingertips a ready-made set of factors to consider in assessing whether one's conduct should be deemed proximate versus remote to another's fraud. The principles of cooperation also provide a framework around which we can organize securities fraud jurisprudence in general. For the insights gleaned from the principles regarding moral culpability in many respects parallel the conclusions reached by courts and commentators construing liability under the securities laws. Perhaps, in addition to the assistance it provides us in resolving the difficult issue of proximity, this framework could serve as a useful aid in resolving other, and future, securities fraud questions.
WHAT IS FREEDOM OF ASSOCIATION, AND WHAT IS ITS DENIAL?

Freedom of association, as I understand it, refers to the liberty a person possesses to enter into relationships with others—for any and all purposes, for a momentary or long-term duration, by contract, consent, or acquiescence. It likewise refers to the liberty to refuse to enter into such relationships or to terminate them when not otherwise compelled by one's voluntary assumption of an obligation to maintain the relationship. Freedom of association thus is a quite capacious liberty.I am going to approach the topic of freedom of association by attempting to illustrate what its denial would look like in each of several domains. I shall then ask why a government might seek to deny it and then, in the article's final section, on what grounds such a denial would violate the rights with respect to freedom of association of those affected.