cssi/SciSciGPT-SciSciNet huggingface dataset:
Fraudulent Income Overstatement on Mortgage Applications During the Credit Expansion of 2002 to 2005

Treating fraudulently overstated income on mortgage applications as true income can lead to incorrect conclusions on the nature of the mortgage credit supply expansion toward marginal borrowers from 2002 to 2005. A positive gap between zip-code-level income growth calculated from mortgage applications and income growth from the IRS likely reflects mortgage fraud, not an improvement in home-buyer income. In support of the credit supply view, mortgage credit for home purchase expanded significantly more in low-credit-score neighborhoods on both the extensive and intensive margins from 2002 to 2005, even though these neighborhoods deteriorated on many measures of income prospects.
Marx, Law, Ideology, Legal Positivism

This essay -- the final version of one presented at the UVA conference on "Jurisprudence and History" -- offers an account of Marx’s theory of history and his claim that law (and morality) are "ideological," and then asks what theory of law is adequate to explain the way the Marxist theory understands law in both its ideological and non-ideological senses. In Marx's theory we need to be able to say what law is in three contexts: (1) there are the laws that constitute the relations of production, i.e., the scheme of property rights in the existing forces of production; (2) there are the laws (and associated legal beliefs, e.g., "you are entitled to equal protection of the law") that are superstructural and ideological in the pejorative sense; and (3) there are the laws that are non-ideological and superstructural because they characterize the legal relations of a non-class-based, i.e., a communist, society. I explain these different senses of law in Marx's theory and then argue that legal positivism, unlike other views about the nature of law, gives us a sensible explanation of law for purposes of the Marxist theory of historical change. That fact, in turn, gives us another data point in favor of positivism as the only serious explanation of the concept of law.
“Defining What We Do—All Over Again”: Occupational Identity, Technological Change, and the Librarian/Internet-Search Relationship

Although a growing literature explores occupational identity, or the overlap between “who we are” and “what we do,” this literature has not fully considered how occupational identity may interact with technological change. In this paper, we explore this interaction, asking how an occupation’s identity shapes and is shaped by its interactions with a new technology. We focus, specifically, on the relationship between librarians and Internet search. Drawing on an analysis of 22 years of articles from library journals, we demonstrate how and why librarians initially discounted Internet search and differentiated themselves from it. We argue that these responses were associated with a “paradox of expertise,” by which librarians missed innovation opportunities around one of the most important information technologies in history precisely, and ironically, because of their deep knowledge of non-Internet searching. Later, however, we demonstrate how librarians engaged with this same technology, drawing upon it to redefine their occupational identity. Our findings demonstrate how occupational identity conditions the interpretation of a technology, while also showing how these interpretations can change with ongoing interactions. We also illustrate how occupational identity itself can change in response to new technology. Finally, we elaborate upon why expert insiders may not actually be best positioned to pursue emerging technologies
The Economic Benefits to Retailers from Customer Participation in Proprietary Web Panels

Abstract Proprietary retailer-sponsored web panels are growing in popularity. We examine specific ways in which retailers may benefit from the creation of web panels and participation of customers in them. A quasi-experiment conducted in the field with a large online retailer using eighteen months of data and a difference-in-differences estimation approach reveals significant economic benefits to the retailer from web panels beyond generation of useful customer information. Web panel participation increased number of purchases by panel customers by 17 percent, cross-buying by 14 percent, and customer profitability by 36 percent. Contrary to conventional wisdom advocating moratoriums for respondents, we find that for web panelists answering each survey (up to a maximum of 27 in nine months) led to incremental positive effects with no evidence of tapering or reversal. Our results extend prior research and managerial implications regarding the question behavior effect by showing that proprietary web panels yield a substantial positive economic impact for retailers.
The presence and effect of the winner’s curse in the market for audit services: An experimental market examination

ABSTRACT We argue that the market for audit services resembles a common value procurement auction in that there is common uncertainty regarding audit cost and auditors generate a private estimate o...
The Role and Powers of the Chinese Insurance Regulatory Commission in the Administration of Insurance Law in China

The Chinese insurance market has generated intense international interest. It has grown from a single company with about U.S.$200 million in revenue in 1978, to a competitive market including foreign-invested enterprises generating U.S.$19.27 billion in premium revenue in 2000. The market grew at the astonishing pace of about 37 per cent a year from 1980 to 1997. Although the pace of growth has slowed, premiums grew by 14.5 per cent in 2000, and are projected to grow by about 12 per cent per year for the next five years. Market circumstances are favorable for continued growth. China’s economy is the sixth largest in the world, and is growing rapidly, yet only about 1.79 per cent of its GDP is spent on insurance. This compares to an average of penetration rate of 9.1 per cent for developed countries, and an average of 3.2 per cent penetration in other emerging markets. Insurance density in China is also relatively low compared to other countries. Per capita spending on insurance in China was only U.S.$15.2 in 2000, compared to an average of U.S.$2,384 for developed countries and an average of U.S.$42 for emerging markets. To put it slightly
Fetal Protection Laws: Moral Panic and the New Constitutional Battlefront

This Article shines a probing light on the escalation of women's reproduction serving as a site for state regulation, monitoring, and criminal policing. Professor Goodwin exposes the ways in which women's pregnancies serve as an expedient space for "tough on crime" criminal policing and prosecutions, including targeting women for refusing c-sections, falling down steps, and attempting suicide. She queries the constitutional legitimacy of such prosecutions and reveals the myriad ways in which women's reproduction now serves as a political battleground. As such, this contemporary battleground shows a hostility toward women's historic reproductive rights by states: ensnaring doctors as modern-day police informants of their pregnant patients; overriding medical directives of pregnant patients; criminalizing miscarriages and still births; stigmatizing poor women's reproduction; and instantiating rights in embryos and fetuses that carry greater legitimacy and protection than that of pregnant women. This article argues that the platform for recognizing women's Fourteenth Amendment rights is undermined by states' disparate treatment of women's privacy, autonomy, and equality.
Governance Structures, Insider Status, and Boundary Maintenance

If legal enforcement of contracts were omnipresent, omniscient, and costless, the identity and history of one's partners would be irrelevant, since any problems caused by unreliable partners could be remedied effectively. However, when legal enforcement is localized, imperfect, and costly, different governance structures for contracts carry implications for the sets of acceptable contracting partners. When legal enforcement for contracts is based on national law, whose reach is coterminous with a state's territory, acceptable partners tend to be defined territorially. When state enforcement of contract law is weak or nonexistent or when a contract is so vulnerable to nonperformance that it requires auxiliary support, actors must devise an alternative or supplement to state enforcement. The most relevant contracting boundaries then will be ones defining groups that can efficaciously create and maintain intertemporal, inter-issue, and inter-actor linkages. We examine just three of many possibilities: family-based, function-based, and ethnicity- or religion-based groups. These different systems of governance affect which entities are recognized as members in the club of actors, as well as how actors define their contracting boundaries and distinguish between those with whom they contract relatively freely and those with whom their contracting is more circumscribed.
The Heritability of Partisan Attachment

One of the strongest regularities in the empirical political science literature is the well-known correlation in parent and child partisan behavior. Until recently, this phenomenon was thought to result solely from parental socialization, but new evidence on genetic sources of behavior suggests it might also be due to heritability. In this article, the authors hypothesize that genes contribute to variation in a general tendency toward strength of partisanship. Using data collected at the Twins Days Festival, the authors compare the similarity of partisan strength in identical twins who share all of their genes to the similarity of partisan strength in nonidentical twins who share only half of their genes. The results show that heritability accounts for almost half of the variance in strength of partisan attachment, suggesting we should pay closer attention to the role of biology in the expression of important political behaviors.
On the Dynamics of Trade Reform

Abstract Empirical studies of trade reforms suggest that these reforms have a surprisingly small impact on a country's industrial configuration. This industrial structure inertia is difficult to rationalize in standard trade models. This paper develops a two-sector industry dynamics model in which industrial composition inertia arises naturally. The model is then used to study the consequences of different types of trade reforms (e.g. permanent, temporary, gradual, pre-announced) on investment, employment composition and income distribution.
Myopia of Selection: Does Organizational Adaptation Limit the Efficacy of Population Selection?

This paper develops and tests a model of the effectiveness of selection processes in eliminating less fit organizations from a population when organizations are undergoing adaptive change. Stable o...
Using adjusted performance measures for evaluating resource use

Public service organizations are looking for ways to improve the evaluation of performance and resource allocation. One of the approaches is to use adjusted performance measures, which attempt to capture factors that affect the organizational performance but are outside of the organization's control. This article illustrates the construction and use of adjusted performance measures to assess the performance of public schools, and reports findings from a study of school-based budgeting in Chicago that relates adjusted performance measures and patterns of budget allocations.
The Selective"War on Terror": Executive Detention of Foreign Nationals and the Principle of Non-Discrimination

The detention of suspected terrorists at the instance of the executive, without charge or trial, is one of the most draconian measures a state can adopt to combat terrorism. Nevertheless, the two leading forces of the "war on terror", the United States and the United Kingdom, found it necessary to resort to this particularly extreme form of deprivation of liberty after September 11. What is perhaps even more remarkable is that both these states made their respective detention powers applicable to foreign, but not to domestic, terrorist suspects. While the British government eventually saw itself forced to repeal its detention scheme to comply with a ruling by the House of Lords, the parallel U.S. system providing for asymmetric detention powers remains in force. This article assesses whether unequal treatment of non-citizens with regard to anti-terrorism detention is compatible with the international human rights principle of non-discrimination. It argues that where, as in the case of the U.S. and British detention regimes, the aim pursued by executive detention is not enforcement of the immigration laws but protection of national security, the citizenship status of the suspected terrorists is not a suitable criterion to determine the applicability of detention powers. For neither in the United States nor in the United Kingdom does the terrorist threat stem exclusively from the foreign part of the population. Moreover, the negative long-term effects of detention powers limited to foreign citizens support the conclusion that the difference in treatment they involve is disproportionate. The article concludes by demonstrating that an insistence on non-discriminatory governmental powers can pave the way for a more principled debate about the acceptability of restrictions of liberty in the fight against terrorism. Requiring political actors to articulate their claims in terms of universally applicable rules is an important instrument of restraining state power and helps protect those who are most likely to be subjected to its worst excesses.
MODELING THE NON-RECYCLED FERMI GAMMA-RAY PULSAR POPULATION

We use Fermi Gamma-ray Space Telescope detections and upper limits on non-recycled pulsars obtained from the Large Area Telescope (LAT) to constrain how the gamma-ray luminosity L{sub γ} depends on the period P and the period derivative P-dot . We use a Bayesian analysis to calculate a best-fit luminosity law, or dependence of L{sub γ} on P and P-dot , including different methods for modeling the beaming factor. An outer gap (OG) magnetosphere geometry provides the best-fit model, which is L{sub γ}∝P{sup -a} P-dot {sup b} where a = 1.36 ± 0.03 and b = 0.44 ± 0.02, similar to but not identical to the commonly assumed L{sub γ}∝√( E-dot )∝P{sup -1.5} P-dot {sup 0.5}. Given upper limits on gamma-ray fluxes of currently known radio pulsars and using the OG model, we find that about 92% of the radio-detected pulsars have gamma-ray beams that intersect our line of sight. By modeling the misalignment of radio and gamma-ray beams of these pulsars, we find an average gamma-ray beaming solid angle of about 3.7π for the OG model, assuming a uniform beam. Using LAT-measured diffuse fluxes, we place a 2σ upper limit on the average braking index and a 2σ lower limit more » on the average surface magnetic field strength of the pulsar population of 3.8 and 3.2 × 10{sup 10} G, respectively. We then predict the number of non-recycled pulsars detectable by the LAT based on our population model. Using the 2 yr sensitivity, we find that the LAT is capable of detecting emission from about 380 non-recycled pulsars, including 150 currently identified radio pulsars. Using the expected 5 yr sensitivity, about 620 non-recycled pulsars are detectable, including about 220 currently identified radio pulsars. We note that these predictions significantly depend on our model assumptions. « less
Measuring Operations: An Analysis of US Private Colleges and Universities’ Financial Statements

As events in the business sector have highlighted, companies can play by the rules and yet produce misleading financial statements. This study examines non-governmental organizations that provide a substantial portion of higher education in the United States. We seek to determine whether private colleges and universities take advantage of the discretion available to them under accounting and auditing standards to present an operating measure in their statement of activities. We find that nearly 60% of schools report an operating measure but the items included or excluded from operations vary widely.
Fiscal discipline and the cost of public debt service: some estimates for OECD countries

We use a panel of 16 OECD countries over several decades to investigate the effects of government debts and deficits on long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates is non-linear: only for countries with above-average levels of debt does an increase in debt affect the interest rate. World fiscal policy is also important: an increase in total OECD-government borrowing increases each country's interest rates. However, domestic fiscal policy continues to affect domestic interest rates even after controlling for worldwide debts and deficits.
Correlation and common priors in games with incomplete information

Abstract This paper provides an explicit characterization of correlations that are implicitly captured by partition models for incomplete information games. The main result of this paper shows that every partition model for incomplete information can be decomposed into the conjunctions of a unique non-redundant model and a unique “individually uninformative” correlating device. The separation of the correlating device from the underlying non-redundant model allows us to separate their strategic implications. As an application, we use this correlation device to define correlated equilibria. Separating the common-prior property of the correlating devices from the underlying state space sheds light on the difference between interim independent and correlated rationalizability.
Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

The paper examines the cyclical properties of food aid with respect to food availability in recipient countries, with a view to assessing its impact on consumption in some 150 developing countries and transition economies, covering 1970 to 2000. The results show that global food aid has been allocated to countries most in need. Food aid has also been countercyclical within countries with the greatest need. However, for most countries, food aid is not countercyclical. The amount of food aid provided is also insufficient to mitigate contemporaneous shortfalls in consumption.
The Framing Years: Policy Fundamentals in the Internet Design Process, 1969-1979

Those responsible for the technical decision making that created the Internet found they had to think through a number of social policy issues, from privacy and intellectual property rights through the definition of common carriage and environmental problems, along the way. Such issues were framed by conceptualizations of the nature of the network, goals to be served by the network, users and uses of the network, and the design criteria that served as policy principles developed during the early years of the design process. This article examines such policy fundamentals as they developed through the technical document series that records the Internet design process, the Internet Requests for Comments (RFCs) during the first decade of that process, 1969-1979.
The Local Spillover Effect of Corporate Accounting Misconduct: Evidence from City Crime Rates*

This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible accounting frauds (e.g., greater media attention and larger stock price declines) are more strongly associated with a future increase in financially motivated neighborhood crime. Our findings are consistent with the general strain theory put forth by Agnew (1992), where individuals facing strain are more likely to commit financially motivated crime. In our setting, we predict that adverse shocks stemming from the fraud, strains local communities leading to the increase in the rate of financially motivated crime. Consistent with our predictions we find that the association between fraud revelation and increased future financially motivated crime is strongest when local city-wide unemployment increases, where local job markets are shallower, and where local income inequality is high.
Domestic Violence as a Crime of Pattern and Intent: An Alternative Reconceptualization

Social scientists almost universally describe domestic violence as an ongoing pattern of conduct motivated by the batterer's desire for power and control over the victim. The criminal statutes used to prosecute domestic violence, however, almost universally describe discrete acts of conduct, without reference to the actor's motivation or other acts of conduct. Although some scholars have questioned the fit between domestic violence and the criminal statutes used to prosecute it, previously only Professor Deborah Tuerkheimer has called for a reconceptualization of the crime of domestic violence to fill the gap. This Article seeks to build on Professor Tuerkheimer's work by exploring further the arguments supporting a reconceptualization of the crime of domestic violence and by proposing an alternative reconceptualization. Specifically, this Article proposes a Coercive Domestic Violence statute that requires proof not that the defendant's conduct was likely to result in substantial power or control over the victim, as Tuerkheimer's proposal requires, but instead that the defendant engaged in a pattern of domestic violence with the intent to gain power or control over the victim. By grounding a specialized domestic violence statute in the requirement of intent to gain power or control, this Article's proposal would bring an important discursive shift in the criminal law's treatment of domestic violence by turning the focus away from the claimed effects of domestic violence on a victim's autonomy and instead toward the coercive motivations of the batterer.
Characterizing and Improving the Reliability of Broadband Internet Access

In this paper, we empirically demonstrate the growing importance of reliability by measuring its effect on user behavior. We present an approach for broadband reliability characterization using data collected by many emerging national initiatives to study broadband and apply it to the data gathered by the Federal Communications Commission’s Measuring Broadband America project. Motivated by our findings, we present the design, implementation, and evaluation of a practical approach for improving the reliability of broadband Internet access with multihoming.
Polyphonic Stare Decisis: Listening to non-Article III Actors

This article explores the input that non-Article III actors can and should have in the Supreme Court's decision to reconsider a prior constitutional decision. It employs a model of constitutional decision-making that distinguishes between the articulation of constitutional meaning and the construction of constitutional doctrine to identify several different stages at which a court can adhere to or depart from precedent and examines the persuasive power of non-Article III input at each stage.
STANDARD-SETTING, INNOVATION SPECIALISTS AND COMPETITION POLICY

Using a simple model of patent licensing followed by product-market competition, this paper investigates several competition policy questions related to standard-setting organizations (SSO's). It concludes that competition policy should not favor patent-holders who practice their patents against innovation specialists who do not, that SSO's should not be required to conduct auctions among patent-holders before standards are set in order to determine post-standard royalty rates (though less formal ex ante competition should be encouraged), and that antitrust policy should not allow or encourage collective negotiation of patent royalty rates. Some recent policy developments in this area are discussed.
The Effectiveness of Alternative Training Techniques on Analytical Procedures Performance

This study examines the effectiveness of alternative training techniques on improving analytical procedures performance. To account for the sequential and iterative nature of complex analytical procedures, we used two different knowledge acquisition mechanisms (worked-out example and problem solving training) to develop specific training tools that have not been used in prior audit research. In addition, we combined these mechanisms with different levels of self-explanation (with self-explanation or without self-explanation). Participants were provided with no training (baseline group) or six training techniques that included outcome feedback, worked-out example, problem solving, self-explanation, worked-out example with self-explanation and problem solving with self-explanation. Thereafter, participants completed a final analytical procedures case that had an error seeded in the financial statements. Results indicate that "worked-out example" or "problem solving training" combined with self-explanation outperformed all other groups. Additional analyses provide insight on the performance gains of the various training techniques in the initial hypothesis generation and subsequent information search and evaluation phases during analytical procedures. Our findings contribute to the training literature in auditing and psychology by showing that combinations of techniques are required for designing effective training for complex diagnostic decision making like analytical procedures.
The Endemic Reality of Media Ethics and Self-Restraint

In contemporary society, media ideally facilitates democracy through its continual scrutiny of governmental operations. The essentiality of this function leads to the industry's designation as the fourth estate. The true effectiveness of the fourth estate remains largely dependent on the adherence to ethical norms that ensure responsible, journalistic behavior. Most media sources have voluntarily adopted ethical standards. Despite such responsible action on the industry's part, an ominous issue remains: Does the media truly embrace ethical codes of conduct? The invitation to participate in a symposium that is devoted to media ethics provides the opportunity to explore the reality of ethical behavior by sources that report the news. Contrary to stereotypical perceptions, this article theorizes that a motivational triad consisting of credibility, audience, and profit prompts the news media's compliance with journalistic codes of ethics. Credibility, which is a foundational element of the motivational triad and leads to audience and profit, remains a dominant force, despite an ever-increasing focus on entertainment. This article also proffers several practical measures that the news media should adopt to ensure the effectiveness of ethical codes.
The MOOC syllabus blues: Strategies for MOOCs and syllabus materials

For this article I focus on strategies to deal with the copyright and access problems associated with Massive Open Online Courses (MOOCs) syllabus materials, and the opportunities they create for faculty, students, and staff to learn about copyright, open access (OA), and publication.
Betting on a Princeling

While previous studies on political connections have empirically estimated the effects of connections on firm value, we still know relatively little about how political connections are formed, or about how the formation of political connections affects the way politicians influence firms. I address these two questions by examining recent cases in China in which two powerful politicians—Bo Xilai and Chen Liangyu—were removed from office. I show that Bo’s removal only affected nationally connected firms, while Chen’s fall only affected locally connected firms. I argue that this difference should be explained by their different career paths: Bo was a national politician, whereas Chen spent his whole career in local government. There is strong evidence that firms were betting on Bo and hence lost market value after his fall. These findings have important implications for our understanding of state-business relations in developing countries.
Ownership Types and Strategic Groups in an Emerging Economy

ABSTRACT Existing strategic group studies have rarely examined ownership type as a variable to classify firms in an industry. Using Chinese firms of different ownership types, we suggest that ownership type can be a parsimonious and important variable that managers use to cognitively classify firms into different strategic groups. While ownership itself is an objective variable, we contend that different ownership types lead to different managerial outlook and mentality due to a number of macro and micro foundations giving rise to various managerial cognitions. Employing the Miles and Snow typology, we find that state-owned enterprises (SOEs) and privately-owned enterprises (POEs) tend to adopt defender and prospector strategies, respectively, while collectively-owned enterprises (COEs) and foreign-invested enterprises (FIEs) exhibit an analyser orientation that falls between defenders and prospectors on the strategy continuum. Three statistical tests suggest that ownership types can be used to successfully predict strategic group memberships in China's emerging economy.
GRAS-Fed Americans: Sick of Lax Regulation of Food Additives

Americans are “GRAS-fed” because of a “loophole” in the strict regime Congress provided for the regulation of food additives. Additives - and food products containing them - are exempt from this strict regime if they are accorded GRAS (Generally Recognized as Safe) status. The guidelines Congress provided for achieving that status by scientific evidence of safety are no longer observed. Most additives are determined by the producer alone to be GRAS. At the same time, Americans’ consumption of highly processed foods continues to rise, giving rise to long-term health problems that are increasingly tied to diet. The average American’s diet includes many additives, most of whose safety has never been reviewed by the Food & Drug Administration. Our GRAS-laden diet may be making us sick. This Article reexamines the GRAS exception and proposes modest changes to restore some of the rigor Congress provided.
Growth through Rigidity: An Explanation for the Rise in CEO Pay

Abstract The dramatic rise in CEO compensation during the 1990s and early 2000s is a longstanding puzzle. In this paper, we show that much of the rise can be explained by a tendency of firms to grant the same number of options each year. Number-rigidity implies that the grant-date value of option awards will grow with firm equity returns, which were very high on average during the tech boom. Further, other forms of CEO compensation did not adjust to offset the dramatic growth in the value of option pay. Number-rigidity in options can also explain the increased dispersion in pay, the difference in growth between the US and other countries, and the increased correlation between pay and firm-specific equity returns. We present evidence that number-rigidity arose from a lack of sophistication about option valuation that is akin to money illusion. We show that regulatory changes requiring transparent expensing of the grant-date value of options led to a decline in number-rigidity and helps explain why executive pay increased less with equity returns during the housing boom in the mid-2000s.
The Curious Beginnings of the Capital Gains Tax Preference

Despite the importance of the capital gains tax preference, and the controversy it often evokes, there has been relatively little serious scholarly attention paid to the historical development of this highly significant tax provision. This Article seeks to move beyond the normative and presentist concerns for or against the tax preference to recount the empirical beginnings and early twentieth-century development of this important tax law. In exploring the curious beginnings of the capital gains tax preference, this brief Article has several aims. First, its main goal is to show that the preference is not a timeless or transhistorical concept, but rather a historically contingent one—a concept that has been shaped not purely by economic logic, but rather by political compromise and social experience. Second, it uses the capital gains tax preference to shed light on broader historiographical questions about the rise and fall of different guiding principles of American political economy. Third, by examining the shifting political coalitions and constituencies behind the tax preference, it intends to show that it is not simply wealthy and elite American taxpayers and their representatives who have supported this tax law. Rather, over time, the law has had a variety of proponents, suggesting that the provision’s persistence can be explained as much by political forces and institutional inertia as by seemingly inexorable economic reasoning. Ultimately, an exploration of the beginnings and early twentieth-century development of the capital gains tax preference provides an opportunity to think about how “we are what we tax” -- the theme of this law review symposium.
The Dynamics of Relief Spending and the Private Urban Labor Market During the New Deal

We examine the dynamic relationships between relief spending and local private labor markets using a panel data set of relief, private employment, and private earnings. Positive shocks to relief during the First New Deal were followed by increased private employment and earnings, consistent with demand stimulus in that period. On the other hand, increases in work relief spending during the Second New Deal were followed by decreased employment and increased earnings, consistent with crowding out. The timing of spending is consistent with claims that the Roosevelt administration used relief spending to sway elections.
The Information Content of Nonfinancial Performance Measures in the Airline Industry

This research extends the literature on nonfinancial performance measures (NFPMs) by assessing (1) the information content of a broader set of NFPMs and (2) whether NFPMs provide information not provided by financial performance measures (FPMs) from all previously identified FPM categories, rather than just earnings and book value. Specifically, exploratory and confirmatory factor analysis results presented in this paper demonstrate that nineteen NFPMs of major airlines capture seven underlying constructs not captured by eighteen common FPMs. Additionally, this research develops reliable composite measures of the identified performance measure constructs, which prior research argues are superior to individual performance measures.
Implicit incentives and reputational herding by hedge fund managers

Abstract Several theories of reputation suggest that managers' incentives affect their propensity to engage in herding behavior. This paper investigates these theories by tracking hedge fund managers' herding behavior over their careers. I first examine managerial incentives for herding, and show that more senior managers that deviate from the herd have a significantly higher probability of failure and do not experience higher fund inflows than their less-senior counterparts. These implicit incentives should encourage managers to herd more as their careers progress. I find strong support for this hypothesis: using a number of proxies for herding, I show that more experienced managers herd more than less-experienced managers. Finally, I examine performance differences between more and less-experienced managers, and find that while more experienced managers underperform less-experienced managers, this underperformance does not appear to be caused by differences in herding. Overall, these results are in direct contrast with studies of mutual fund managers, reflecting important difference in implicit incentives between the two industries.
Spreads, Depths, and Quote Clustering on the NYSE and Nasdaq: Evidence after the 1997 Securities and Exchange Commission Rule Changes

This paper examines liquidity and quote clustering on the NYSE and Nasdaq using data after the two market reforms—the 1997 order-handling rule and minimum tick size changes. We find that Nasdaq-listed stocks exhibit wider spreads and smaller depths than NYSE-listed stocks and stocks with higher proportions of even-eighth and even-sixteenth quotes have wider quoted, effective, and realized spreads on both the NYSE and Nasdaq. This result differs from the findings by Bessembinder (1999, p. 404) that “trade execution costs on Nasdaq in late 1997 are no longer significantly explained by a tendency for liquidity providers to avoid
PROPERTY RIGHTS AND THE EFFICIENT EXPLOITATION OF COPYRIGHTED WORKS: AN EMPIRICAL ANALYSIS OF PUBLIC DOMAIN AND COPYRIGHTED FICTION BEST SELLERS

Economists and policymakers have recently defended the extension of copyright protection to assure the efficient exploitation of existing works. They assert that works in the public domain may be under-exploited due to the lack of property rights or over-exploited due to congestion externalities. This study compares the availability, number of editions, and prices of 166 public domain bestsellers published from 1913-1922 with 168 copyrighted bestsellers from 1923-1932. It also compares the 20 most durable public domain works from 1913-1922 with the 20 most durable protected works from 1923-1932. A significantly higher percentage of the public domain books are still in print, with significantly more editions available per book, and for the sub-set of especially durable works, the public domain works are significantly less expensive. Although the data show that rates of availability for both kinds of books are likely sensitive to reductions in the cost of duplication and distribution, the study concludes that protection of fiction beyond the period necessary to ensure its creation is not justified by concerns about under-exploitation. The possibility of congestion presented by the data is also considered.
Composition Rules for Building Linear Programming Models from Component Models

This paper describes some rules for combining component models into complete linear programs. The objective is to lay the foundations for systems that give users flexibility in designing new models and reusing old ones, while, at the same time, providing better documentation and better diagnostics than is provided by current systems. The results presented here rely on two different sets of properties of LP models: first, the syntactic relationships among indices that define the rows and columns of the LP, and second, the meanings attached to these indices. These two kinds of information allow us to build a complete algebraic statement of a model from a collection of components provided by the model builder.
Patents for Environmentalists

This essay, written for the National Association of Environmental Law Societies' (NAELS) annual meeting, explains how patent law operates generally with an emphasis on how it may impact the environment in particular. In so doing, the essay addresses from a patent perspective some representative concerns relating to patents that appear to be prevalent in the environmental literature and shows how the patent system may provide substantial benefit for those favoring the environment.
Prima Paint Pushed Compulsory Arbitration Under the Erie Train

As the face of commerce changes, the law usually follows, albeit at some distance. The United States Supreme Court has recently stepped up the pace. In a line of cases, some old, some recent, but all feeding off of one another, the Court has held that challenges to agreements which contain arbitration provisions must go to the arbitrator first. Courts may hear formational challenges only where they challenge the arbitration provision alone. In the Supreme Court, arbitration, with its vast potential for abuse as well as for good, has found a friend. The Court’s doctrine of choice, “severability,” raises serious concerns for the hallmark decision, Erie Railroad Co. v. Tompkins. Erie’s firm principle that federal courts may not (constitutionally) create a general federal common law is imperiled by the Court’s use of severability. A recent en banc decision from the Ninth Circuit, offered in the form of an engaging dialogue between a majority judge and a dissenting judge, demonstrates where the Supreme Court has gone awry and offers a fix. The solution offered is an Erie-based zone of deference for state contract law that both, is constitutional and respects the dictates of the Federal Arbitration Act.
FOREIGN INVESTORS REAL PROPERTY TAX ACT: HISTORICAL PERSPECTIVE AND CRITICAL EVALUATION

This Article first discusses the United States tax treatment of foreigners generally and the pre-Foreign Investors Real Property Tax Act withholding and taxation scheme with respect to foreign investment in United States real estate. Then follows a discussion of the several ways in which foreign investors were, before the Act, able to avoid tax on the disposition of United States real estate and a critical evaluation of the Act's response to those avoidance methods. Finally, a discussion of the Act's enforcement provisions and a general discussion of withholding of tax on nonresidents is provided.
The Essence of Antitrust: Protecting Consumers and Small Suppliers from Anticompetitive Conduct

The goals of antitrust law continue to be debated because there is no single goal that is unambiguously correct. There is one goal, however, that now commands wider support than any other: protecting consumers and small suppliers from anticompetitive conduct—conduct that creates market power, transfers wealth from consumers or small suppliers, and fails to provide them with compensating benefits. This goal is the predominant objective in the legislative histories, it is broadly supported by the American people, it is easier to administer than a total welfare standard, and it is now espoused by the majority of courts. Proponents of total welfare advance two principal arguments, but neither warrants elevating it over consumer and small supplier protection. First, from a normative perspective, total welfare is arguably the superior goal because it considers the welfare of all participants in the economy, including producers and consumers outside the relevant market. It ignores, however, the transfer of wealth that anticompetitive conduct causes, a transfer that many people regard as exploitative and unfair. Second, from a legal perspective, total welfare is arguably the goal of section 2 of the Sherman Act, because it allows a firm to gain monopoly power through superior efficiency. But this safe harbor is equally consistent with a consumer protection goal, since it encourages firms to succeed in the marketplace by providing customers with better products, lower prices, and more choices.
What Makes Wealth Grow? A Wealth Sensitive Financial Statement Analysis

Wealth growth opportunities are difficult to observe using traditional financial statements. In this case study, an analysis using a wealth-sensitive balance sheet and income-expense statement is presented to help identify corrective adjustments that promote wealth growth. Adjustments involve the application of straightforward financial practices such as paying off debt, living within means, saving and investing 10% of earned income, re-investing all investment income, and converting excessive depreciating assets into wealth producing assets. The analysis also includes an estimate of the direction and magnitude of wealth growth change that is likely to occur from taking a set of proposed corrective adjustments.
Materiality Guidance of the Major Public Accounting Firms

SUMMARY: This paper examines the materiality guidance for eight of the largest U.S. public accounting firms. Knowledge of how materiality guidance is integrated into a firm's methodology is import...
Identifying Behavioral Explanations for a Subset of the Real Estate Shadow Market

This study examines both financial and behavioral explanations for the existence of a residential real estate shadow market for underwater investment properties. The findings reveal that the afford...
Low Stakes and Constitutional Interpretation

Many of us engage in debates, sometimes intense debates, over the proper method of constitutional interpretation for judges. This paper offers six reasons to believe that these debates involve low stakes, in the sense that the choice among competing methods will not determine outcomes in a significant number of important cases. These reasons involve mainstream constraints, overlapping results, indeterminate results, intolerable results, interpretation without decision, and unimportant constitutional decisions. After a suitably brief investigation of theoretical and experimental resources on low-stakes decision making, the paper suggests how debates over constitutional interpretation by judges might proceed if more people become convinced that the stakes are indeed low. Three venues of debate are considered - academia, the judicial appointments process, and judiciaries - along with stakes beyond case outcomes.
Dealing with Hate in the Feminist Classroom: Re-Thinking the Balance

This article addresses the conflict between free speech and educational rights through the lens of the author's experience dealing with intentionally disruptive hate speech in a seminar entitled Law and Feminism. The paper begins by describing the hate speech that occurred in Law and Feminism and its impact upon the students in the class. The description is meant to show concretely and specifically the harms of student hate speech in the classroom, especially in a seminar class devoted to feminist theory. The paper then critiques the refusal of many legal educators to interfere with student hate speech in the classroom. Although interference with student speech is a well-settled part of legal education, and it is a widely accepted principle that free speech can be regulated in an academic environment when it interferes with the educational purpose of the class or equality principles, the legal academy generally responds to hate speech by ignoring it. With hate speech, biases in the legal academy tilt the balance unfairly toward a policy of non-interference - the academic equivalent of sticking one's head in the sand. This paper takes issue with that approach. The paper argues that, despite its claims to neutrality, the non-interference approach to student hate speech is neither neutral nor absolute. Instead, the political context of law school inflates the free speech harm of professorial regulation of student hate speech while simultaneously deflating the importance of more widely accepted law school practices that control the content of student classroom dialogue. The non-interference approach also misunderstands and de-values the educational goals of seminars devoted to critical legal thought. The paper challenges law schools to renounce the superficially neutral "non-interference" approach and devise a more thoughtful, nuanced approach to the balance of free speech and education rights in the legal academy.