cssi/SciSciGPT-SciSciNet huggingface dataset:
The merits and feasibility of returning to a commodity standard

Abstract Although few academic economists today endorse a gold standard, historical data show that actual gold standards have outperformed actual fiat standards in at least five respects. Gold standards have exhibited: (1) lower mean inflation rate, hence lower deadweight cost of economizing on money balances; (2) lower price level uncertainty, hence deeper long-term bond markets; (3) greater international trade and capital flows, due to network benefits of a common currency area; (4) lower resource costs of gold mining for monetary purposes with a lower real price of gold, due to the absence of private demand to hold gold as an inflation hedge; and (5) greater fiscal discipline. Returning to a gold standard would be immediately feasible for the US, the Eurozone, and Switzerland, where official gold stocks are large enough at the current price of gold to provide historically reasonable reserve ratios behind broader monetary aggregates. Other major nations (Japan, UK, China) would have to purchase gold.
A General Method for Detecting Interference Between Units in Randomized Experiments

Interference between units may pose a threat to unbiased causal inference in randomized controlled experiments. Although the assumption of no interference is often necessary for causal inference, few options are available for testing this assumption. This article presents an ex post method for detecting interference between units in randomized experiments. With a test statistic of the analyst’s choice, a conditional randomization test allows for the calculation of the exact significance level of the causal dependence of outcomes on the treatment status of other units. The robustness of the method is demonstrated through simulation studies. Moreover, using this method, interference between units is detected in a field experiment designed to assess the effect of mailings on voter turnout in a U.S. primary election.
Is Self‐Regulated Peer Review Effective at Signaling Audit Quality?

ABSTRACT: This study examines whether peer reviews conducted under the AICPA's self‐regulatory model have been effective at signaling audit quality. Prior research has examined whether peer‐review reports are associated with perceived audit quality. We examine whether peer‐review reports are associated with actual audit quality. Using a unique data set obtained from the files of an insurance company, we find that peer‐review findings are indeed useful in predicting audit failure (i.e., malpractice claims alleging auditor negligence), and that certain types of findings are particularly useful in this regard. We also find that peer‐review findings are associated with other firm‐specific indicators of potentially weak quality control or risky practices within accounting firms. Taken together, we interpret our findings to indicate that self‐regulated peer review as mandated by the AICPA does provide effective signals regarding audit‐firm quality.
The structure of sustainability research in marketing, 1958–2008: a basis for future research opportunities

Recent changes in the business environment have prompted marketing scholars to pay particular attention to sustainability as a topic of inquiry. Despite the progress made in the study of sustainability, there is a paucity of research on the topic in premier marketing journals. To address this issue, we focus on marketing-related journals and assess the intellectual structure of sustainability research in detail. Drawing on social network theory, we perform an extensive co-citation analysis using multidimensional scaling to examine 76,342 citations made in 1,320 sustainability-focused articles from 36 journals over 51 years (1958–2008). This study specifies that the topics of citizenship behavior, stakeholder theory, corporate performance, and the triple bottom line are integral sustainability research areas. In addition, the results indicate five required topics for examining sustainability in the marketing context: external-internal focus, social-environmental emphasis, legal-ethical-discretionary intent, marketing assets, and financial performance. Supported by the capabilities-based resource perspective, the sustainability-focused typology and framework advanced provide directed structure for future research.
The Correlation between Shocks to Output and the Price Level: Evidence from a Multivariate GARCH Model

Previous research indicates that the price-output correlation is time varying. This paper therefore estimates a vector autoregression (VAR) model with a bivariate generalized autoregressive conditional heteroskedasticity (GARCH) error process to obtain quarterly estimates of the price-output correlation for the United States for the period 1876:IV-1999:IV. The estimated correlation is usually positive before 1945 and zero during 1945-1963. Negative correlations become important only after 1963 but do not become obviously more important than zero correlations. Prior to 1945, the estimated correlation typically is positive during both recessions and expansions. After 1945, the estimated correlation remains largely positive during recessions but becomes mainly negative during expansions, suggesting that changes in the sign of the price-output correlation are the result primarily of changes in its sign during expansions.
Legal Doctrine on Collegial Courts

Appellate courts, which have the most control over legal doctrine, tend to operate through collegial (multimember) decision making. How does this collegiality affect their choice of legal doctrine? Can decisions by appellate courts be expected to result in a meaningful collegial rule? How do such collegial rules differ from the rules of individual judges? We explore these questions and show that collegiality has important implications for the structure and content of legal rules, as well as for the coherence, determinacy, and complexity of legal doctrine. We provide conditions for the occurrence of these doctrinal attributes in the output of collegial courts. Finally, we consider the connection between the problems that arise in the collegial aggregation of a set of legal rules and those previously noted in the collegial application of a single, fixed legal rule.
Villainy and Felony: A Problem Concerning Criminalization

Paul Johnson, the conservative British columnist and author of several best-selling works of popular history (The Birth of the Modern, A History of the Jewish People) wields a famously ferocious pen. His voluptuously angry style is on consummate display in a short volume of biographical essays titled simply Intellectuals, covering the lives of thirteen leading left-wing intellectuals: Rousseau, Shelley, Marx, Ibsen, Tolstoy, Hemingway, Brecht, Bertrand Russell, Sartre, Edmund Wilson, Victor Gollancz
What can new survey data tell us about recent changes in distribution and poverty

It has been claimed that in recent times the poor have lost ground, both relatively and absolutely, even when average levels of living have risen. This article tests that claim using household surveys for 67 developing and transitional economies over 1981-94. It finds that changes in inequality and polarization were uncorrelated with changes in average living standards. Distribution improved as often as it worsened in growing economies, and negative growth was often more detrimental to distribution than positive growth. Overall, there was a small decrease in absolute poverty, although with diverse experiences across regions and countries. Almost always, poverty fell with growth in average living standards and rose with contraction.
The 2008 Food Crisis as a Critical Event for the Food Sovereignty and Food Justice Movements

As a reaction to the 2008 food crisis, a diverse group of US-based organizations formed a multi-sectoral coalition to promote food sovereignty. How did the 2008 food crisis unify these diverse groups? How did different groups with different agendas find a common cause in food sovereignty? I draw on social movement theory to explain the formation of the coalition and show how its member groups have sought to strengthen its capacity, formulate a coherent message, and jointly campaign for change in food and agriculture policy. I find that a number of variables explain these processes: heightened threats and expanding opportunities encourage initial joint mobilization, while pre-existing ties and trust, organizational flexibility, and frame alignment help expand the membership and capacity of the coalition.
Ex Ante Versus Ex Post Deliberations: Two Models of Judicial Deliberations in Courts of Last Resort

This Article discusses supreme and constitutional courts' internal organizational cultures, that is, the way in which justices organize their work and establish informal decision-making norms. Courts of last resort are often presented as exemplary deliberative institutions. The conference meeting, which convenes judges in quiet seclusion to debate, has been glorified as the most significant step in a court's decision-making process. Based in part on qualitative empirical research, I argue, however, that French, American, and European justices may not deliberate in the full sense that deliberative democrats have theorized. The Article distinguishes two types of high court deliberations, which I call the "ex ante" and the "ex post" models. In the first model, prevalent in the French and European courts, judges draft and deliberate the court's merits opinion before the case is orally argued and scheduled for the conference meeting. In other words, cases are decided before being decided. The second model is typical of AngloAmerican supreme courts, in particular the United States Supreme Court; in this model, justices do most of the deliberative work after the case has been orally argued and a vote on the merits has taken place at the conference. In other words, cases are decided after being decided. Despite different judicial cultures, one common theme is that in both ex ante and ex post courts, judges tend to decide cases through a succession of multiple small group interactions involving non-judicial personnel rather than a single prolonged face-to-face deliberation. The upshot of the Article is the formulation of a dual-influence hypothesis: a court's style of judicial opinions may form deliberations as much as deliberations shape opinions.
Local banking panics of the 1920s: Identification and determinants

Abstract Using a newly discovered dataset of U.S. bank suspensions from 1921 to 1929, we discovered that banking panics were more common in the 1920s than had been believed. Besides identifying panics, we investigate their determinants, finding that local banking panics were more likely when fundamental economic conditions were generally weak and more likely in “overbanked” states; they were less likely in states with deposit insurance or states where a relatively large share of banks belonged to chain banking organizations.
Rational Coercion: Citizens United and a Modern Day Prisoner's Dilemma

This paper proposes neither a critique nor a review of the 2010 Supreme Court decision in Citizens United v. Federal Election Commission. Rather, this paper acknowledges that the Supreme Court has spoken on the issue of corporate First Amendment rights in the context of independent expenditures and asks the question: What happens next? While there are undoubtedly First Amendment and election law implications from the case, there are also important consequences for corporate law and for citizen shareholders. Instead of debating the merits of the case, this article asks if a corporation spends to influence political messages, what is the effect on shareholders? In answering that question, this article describes the “rational coercion” created in the prisoner’s dilemma and applies it to the issue of corporate political expenditures in an attempt to identify the effects of the Citizens United decision.
An empirical analysis of teacher spillover effects in secondary school

Abstract This paper examines whether educational production in secondary school involves joint production among teachers across subjects. In doing so, it also provides insights into the reliability of value-added modeling. Teacher value-added to reading test scores is estimated for four different teacher types: English, math, science and social-studies. The initial results indicate that reading output is jointly produced by math and English teachers. However, while falsification tests confirm the English-teacher effects, they cast some doubt about whether the math-teacher effects are free from sorting bias. The results offer a mixed review of the value-added methodology, suggesting that it can be useful but should be implemented cautiously.
The effects of government capital and liquidity support programs on bank lending: Evidence from the syndicated corporate credit market

This study jointly evaluates the effects of the U.S. Treasury's Troubled Asset Relief Program (TARP), the Federal Reserve's Discount Window (DW), and Term Auction Facility (TAF) on bank syndicated lending during the 2007–2009 financial crisis, using a unique data set that tracks the exposure of each lender in each syndicated credit facility in each year. By comparing lending changes within a group of banks that lend to the same facility of the same firm in the same year, it eliminates the impacts of demand-side factors that often bias the results of empirical studies on bank credit supply. Overall, I find that TARP, DW, and TAF played only a marginal role in increasing bank syndicated lending. By examining lending changes at the facility-lender and firm-lender levels, this study is less prone to the reverse causality problem that is inherent in studies using bank-level data. Therefore, this study complements studies using bank-level data and provides policymakers with a balanced view on the effects of these programs.
Changes in the representation of women and minorities in biomedical careers.

PURPOSE To examine how efforts and policies to increase diversity affect the relative representation of women and of minority groups within medicine and related science fields. METHOD The authors of this report used data from the Current Population Survey March Supplement (a product of the U.S. Census Bureau and the Bureau of Labor Statistics that tracks race, ethnicity, and employment) to compute the representation ratios of persons employed in biology, chemistry, and medicine from 1968 to 2009 (inclusive). They derived the representation ratios by computing the ratio of the conditional probability that a member of a given group is employed in a specific skilled science field to the overall probability of employment in that field. Their analysis tested for differences in representation ratios among racial, gender, and ethnic groups and across time among those employed as biologists, chemists, and medical doctors. RESULTS Representation ratios rose for white females, whose percentage increase in medicine was larger than for any other racial/ethnic group. The representation ratios fell for Hispanics in biology, chemistry, and medicine. The representation ratio rose for African Americans, whose highest percentage increase occurred in biology. Asian Americans, who had the highest representation ratios in all three disciplines, saw a decline in their relative representation in medicine. CONCLUSIONS The authors have demonstrated that all groups do not benefit equally from diversity initiatives and that competition across related fields can confound efforts to increase diversity in medicine.
Molly and the Crack House Statute: Vulnerabilities of a Recuperating Music Industry

As the music industry continues to derive more profits from its live music sector, the threat of problematic, dangerous “club drug” use at concerts remains prevalent. In addition to obvious health and safety threats, the normalcy of these drugs in today’s live music culture makes concert promoters and venue managers vulnerable to prosecution under the “crack-house statute,” 21 U.S.C. § 856. Section 856(a)(2) makes it illegal for a promoter or venue manager to “manage any place . . . and knowingly and intentionally . . . profit from, or make available for use . . . the place for the purpose of unlawfully manufacturing, storing, distributing, or using a controlled substance.” In Tebeau v. United States, the Eighth Circuit Court of Appeals held that third parties could satisfy the statute’s “intent” requirement, which would allow the government to hold a promoter or venue manager liable for any of the aforementioned activities taking place at a particular event. This article details the rapid growth of the club-drug culture in genres like electronic dance music, which as live music’s most profitable genre, is particularly noteworthy because of the rampant use of the club drug, “Molly,” among its fan-base. The broadened scope of liability created by the Eighth Circuit may reasonably lead to a decrease in corporate sponsorships and to potential economic downturns for the many cities around the country that have grown accustomed to the revenue brought by the live music sector. The Eighth Circuit’s interpretation and the uncertainty that it has created may lead to a situation where any promoter involved in any event where illegal drugs are consumed may be held liable under Section 856, as promoters and venue managers cannot reasonably be expected to completely eliminate drug use at their events. This article calls for an amendment to the statute, better designed (1) to curb dangerous club drug use, (2) to provide health and safety measures for patrons, and (3) to punish, specifically, rogue concert promoters who facilitate such dangerous situations, so that the many positive economic effects of the live music sector may continue to flourish.
Externships and New Lawyer Mentoring: The Practicing Lawyer's Role in Educating New Lawyers

Law schools and bar associations have begun successful and sustainable programs to assist law students and new lawyers in making the transition from law school to the first year of legal practice. The key to the universal availability of these proven approaches is the willingness of experienced lawyers to become supervising mentors for law school externship programs and for bar association mentoring programs for new lawyers. The traditional roadblocks to implementation of these programs have disappeared by eliminating the heavy costs involved in traditional law school clinical programs and by adding quality controls to bar association programs to assure that the formerly debunked apprenticeship programs operate as they should. Law schools can contribute to a meaningful transition by providing meaningful practice experiences as the method for learning in a capstone apprenticeship semester during the third year of law school. Bar associations can adopt learning oriented plans for mentors to turn a relationship into a meaningful set of educational objectives.
To Whom, When, and How Much to Discount? A Constrained Optimization of Customized Temporal Discounts

Abstract Customized temporal discounts are price cuts or coupons that are tailored by size, timing, and household to maximize profits to a retailer or manufacturer. The authors show how such discounts allow companies to optimize to whom, when, and how much to discount. Such a scheme allows firms to send just enough discounts just prior to the individual's purchase of a rival brand. To do so, the authors model household purchase timing and brand choice in response to discounts and use Bayesian estimation to obtain individual household parameters. They illustrate the model on a Japanese data set having price cuts, a US data set having coupons, and another US data set having discounts. They formulate the optimization task of customized temporal coupons as a constrained multiple-knapsack problem under a given budget. They use simulations of the empirical contexts to obtain optimal solutions and to assess improvement in profits relative to existing practice and alternate models in the literature. The proposed model yields increase in profits of 18–40 percent relative to a standard model that optimizes the value but not timing of discounts.
Managerial Perceptions and the Essence of the Managerial World: What is an Interloper Business Executive to Make of the Academic-Researcher Perceptions of Managers?

I argue that the Mezias and Starbuck (2003) research programme misses being managerially relevant by investigating the extent of perceptual inaccuracies among managers rather than the more valuable question of from where these inaccuracies arise and what their consequences are in practice. As a sometime business executive, it seems to me that the closer one gets to an actual managerial position, the less significant some of the explanations and recommendations in the academic research literature appear as regards managerial concerns. To ensure relevance in the managerial research enterprise, I suggest that academics should make concrete efforts to become reasonably conversant with the managerial world before undertaking any empirical research. I also make the point that the discussion of the Mode 2 approach to knowledge production in the management field needs to move away from the current focus on straightforwardly ‘bridging the relevance gap’ and toward finding ways to improve the competence of Mode 2 researchers by insisting on a minimum understanding of the managerial world before embarking on management research.
Indigenous Peoples as International Lawmakers

Through a transnational social movement that has capitalized upon the politics of difference, local communities of indigenous peoples have significantly participated in the construction of a distinctive international legal identity and derivative framework of human rights. The ability of a traditionally marginalized community to succeed in strategically facilitating the recognition of an international legal identity and substantive reconstitution of human rights precepts is a unique phenomenon that merits attention. To that end, this Article addresses the role of indigenous peoples in international human rights lawmaking. It argues that indigenous peoples have played a significant role in changing the legal landscape of human rights in ways that are not necessarily captured by mainstream accounts of non-state actor participation * Assistant Professor of Law, Florida International University College of Law. This Article was selected for presentation at the “New Voices in Human Rights” Panel for the 2009 Association of American Law Schools (“AALS”) Annual Meeting, and I am grateful to Christiana Ochoa and Sarah Paoletti for their consideration as well as to the audience members and co-panelists who provided comments. I am also grateful to Karen Engle, Vasuki Nesiah, and Dennis Davis, the facilitators of the Human Rights and Social Justice Writing Workshop at the 2010 Summer Institute for Global Law and Policy at Harvard Law School, and the other members of the writing workshop for their comments, feedback, and encouragement. I am thankful to the audience members and co-panelists who provided comments on earlier versions of this Article at the 2010 Michigan State University College of Law Junior Faculty Forum, the 2009 Stetson Florida Faculty Scholarship Forum, 2008 Oregon Review of International Law Symposium on “Legal Pluralism and Inequality,” and 2007 LatCrit Annual Conference on “Critical Localities.” I would additionally like to thank my colleagues at the FIU College of Law for their feedback during a workshop presentation of this paper. I am also indebted to Jorge Esquirol, Hari Osofsky, Charles Pouncy, Ediberto Roman, and Carlton Waterhouse for their valuable insights. This Article benefitted from the excellent research assistance of Sophia Bodero, Natalie Castellanos, Melanie Martinez, Erin Miller, and International Law Research Librarian, Marisol Floren. 1 Miranda: Indigenous Peoples as International Lawmakers Published by Penn Law: Legal Scholarship Repository, 2014 MIRANDA.DOC 11/23/2010 3:57 PM 204 U. Pa. J. Int’l L. [Vol. 32:1 in international norm-building and decision-making. It further proposes, however, that the participation of indigenous peoples in international human rights lawmaking continues to operate within certain discursive and structural limitations. While indigenous peoples’ participation may serve to lend greater legitimacy to international human rights law and lawmaking processes, such participation may not effectively deliver material gains. As a result, continued advocacy on behalf of indigenous peoples must acknowledge and respond to these challenges.
Contested terms and philosophical debates

There are two standard theoretical responses to putative errors in ordinary thinking about some given target property: eliminativism or revisionism. Roughly, eliminativism is the denial that the target property exists, and revisionism is the view that the property exists, but that people tend to have false beliefs about it. Recently, Shaun Nichols has proposed a third option: discretionism. Discretionism is the idea that some terms have multiple reference conventions, so that it may be true to say with eliminativists that the property does not exist, and true to say with revisionists (and others) that the property does exist. This article explores the viability of discretionism, and argues that it faces serious difficulties. Even if the difficulties faced by discretionism can be overcome, it is unclear that discretionism secures anything beyond what is already available to standard revisionist views. The article concludes with some reflections about Nichols’ account of the bare retributive norm.
Prescribing institutions: Explaining the evolution of physician dispensing

Health systems provide a rich field for testing hypotheses of institutional economics. The incentive structure of current healthcare delivery systems have deep historical and cultural roots, yet must cope with rapid technological change as well as market and government failures. This paper applies the economic approach of comparative and historical institutional analysis (Aoki, 2001; Greif, 2006) to health care systems by conceptualizing physician control over dispensing revenues as a social institution. The theory developed – emphasizing the interplay between cultural beliefs, interest groups, technological change, insurance expansion and government financing – offers a plausible explanation of reforms since the 1960s separating prescribing from dispensing in societies such as Japan, South Korea, Taiwan and China. Technological change and adoption of universal coverage trigger reforms by greatly increasing the social opportunity costs of physician over-prescribing and reshaping the political economy of forces impinging on the doctor–patient relationship.
Implementing Legal Capacity Under Article 12 of the UN Convention on the Rights of Persons with Disabilities: The Difficult Road From Guardianship to Supported Decision-Making

In deceptively simple language, Article 12 of the United Nations Convention on the Rights of Persons with Disabilities (“CRPD”), Equal Recognition before the law, provides that “States Parties shall recognize that persons with disabilities enjoy legal capacity on an equal basis with others in all aspects of life.” If, as is clear from the deliberations that produced this article, Article 12’s use of the term “legal capacity” includes not simply the capacity to have rights (or passive capacity) but also the capacity to act or exercise one’s rights, an important question that arises is how to address the circumstances of individuals with disabilities who may not be able to exercise their legal capacity without some kind of assistance or intervention. Article 12(3) addresses this question in language that once again seems straightforward and uncontroversial: “States Parties shall take appropriate measures to provide access by persons with disabilities to the support they may require in exercising their legal capacity.” Yet this use of the word “support,” and the related concept of supported decision making, represents nothing less than a “paradigm shift” away from well-established but increasingly discredited notions of substituted decision making. Rhetorical identification of the shift from substituted to supported decision making, however, is one thing; understanding what these terms mean, and fully implementing a regime truly oriented toward supporting rather than supplanting the decision making rights of people with disabilities, is quite another matter.
Specific Investment and Corporate Law

What is a business corporation? What purposes does and should it serve? These questions have been raised repeatedly by legal scholars, practitioners, and policy-makers for at least the past 150 years. Each generation has struggled to find acceptable answers.
Corporate Tax Avoidance and Firm Value

Abstract Do corporate tax avoidance activities advance shareholder interests? This paper tests alternative theories of corporate tax avoidance using unexplained differences between income reported to capital markets and to tax authorities. OLS estimates indicate that the effect of tax avoidance on firm value is a function of firm governance, as predicted by an agency perspective on corporate tax avoidance. Instrumental variables estimates based on exogenous changes in tax regulations yield larger overall effects and reinforce the basic result, as do several robustness checks. The results suggest that the simple view of corporate tax avoidance as a transfer of resources from the state to shareholders is incomplete given the agency problems characterizing shareholder-manager relations.
Multi-Product Duopoly With Cross-Product Cost Interdependencies

Many multi-product firms incur a complexity fixed cost when offering different product lines in different quality tiers relative to the case when offering all products lines in the same quality tier (high or low). Such fixed costs create an interdependency between firms' choices of quality tiers across different product lines, even when demands are independent. We investigate the effects of this interdependency on equilibrium profits in a Stackelberg duopoly game. Both firms' profits are (weakly) higher when the complexity cost is infinite than when it is 0. The Stackelberg leader's profits are always (weakly) higher with a positive complexity fixed cost, but its profits can be non-monotonic in the magnitude of this cost. The Stackelberg follower's profits can be lower when the complexity fixed cost is positive than when it is equal to 0.
The Brazilian Economy in 1994–1999: From the Real Plan to Inflation Targets

This paper investigates the three main events that shook the Brazilian economy in 1994--1999, a period that represented a turning point in the country's economic history. These events were the implementation of the Real Plan in 1994, the devaluation crisis in 1999, and the subsequent adoption of inflation targets. The principal contributions of this period were the drastic reduction of high inflation rates – the biggest problem in Brazil since the 1970s – and the reorientation towards economic growth, which were also supported by a privatisation programme, the openness of the economy to foreign capital, a trade liberalisation process, and the ongoing fiscal adjustments. Nevertheless, the period also left its scars, such as high budget and current account deficits, accompanied by a policy of elevated interest rates and, until 1999, a highly appreciated exchange rate. The paper concludes with a cautiously optimistic evaluation of the country's economic future based on the accomplishments of the 1990s and the possibility of a long-term commitment to low inflation targets.
The Use of Program Analysis in State Budgeting: Changes between 1990 and 1995

Reform literature has long championed the notion that program analysis should be utilized in budgetary decision making. This article reveals that, although the 1990s may have shown renewed interest in this line of reform nationally, a noticeable decline seems to have occurred in the conduct and use of program analysis by states. The article examines other changes in the period from 1990 to 1995, compares different executive-branch units with one another in their involvement with program analysis, and considers possible relationships between executive and legislative use of analysis Few linkages are found between the characteristics of states and their use of program analysis. The article concludes with a discussion of possible explanations for the changes between 1990 and 1995 and the implications of those changes.
Discretionary Accounting Choices and CEO Compensation

This paper makes four contributions to the literature relating accounting choices to CEO compensation. First, it shows that discretionary accruals are associated with CEO cash compensation, a result that holds after controlling for both the nondiscretionary components of income and increases in shareholder wealth. Although significant, the coefficient on discretionary accruals is significantly lower than that on nondiscretionary accruals, which in turn is significantly lower than the coefficient on operating cash flows. Second, the paper shows a differential reaction to positive and negative discretionary accruals —- the association between positive discretionary accruals and CEO cash compensation is significantly greater than the association between negative discretionary accruals and CEO cash compensation. Third, the paper shows the association between discretionary accruals and CEO cash compensation varies depending upon the circumstances of the firm. In particular, when positive discretionary accruals allow the firm to reduce or avoid a loss, the association between CEO cash compensation and discretionary accruals is significantly greater. Finally, this paper shows that the association of CEO cash compensation with reported income generally increases with the level of discretionary accruals, consistent with management responding to the incentives provided.
Perpetuities or Taxes? Explaining the Rise of the Perpetual Trust

By abolishing the Rule Against Perpetuities, twenty-one states have validated perpetual trusts. The prevailing view among scholars is that enactment of the generation skipping transfer (GST) tax in 1986 prompted the movement to abolish the Rule by conferring a salient tax advantage on long-term trusts. However, an alternate view holds that demand for perpetual trusts stems from donors’ preference for control independent of tax considerations. Proponents of both views have adduced supporting anecdotal evidence. Using state-level panel data on trust assets prior to the adoption of the GST tax, we examine whether a state’s abolition of the Rule gave the state an advantage in the jurisdictional competition for trust funds. We find that, prior to the GST tax, a state’s abolition of the Rule did not increase the state’s trust business. By contrast, in a prior study we found that, between the enactment of the GST tax and 2003, states that abolished the Rule experienced a substantial increase in trust business. Accordingly, we conclude that the enactment of the GST tax prompted the rise of the perpetual trust. These findings bear on the debate over proposals to liberalize the law of trust termination and modification and to amend the GST tax. Our findings also contribute to the literature on the bequest motive. * Assistant Professor of Law, Northwestern University. * * Professor of Law, New York University (effective Fall 2006); Associate Professor of Law, Northwestern University (through Summer 2006). The authors thank Ronen Avraham, David English, Mary Louise Fellows, Marcel Kahan, Andrew Koppelman, John Langbein, Richard Nenno, Laura Rosenbury, Joshua Tate, Tobias Wolf, and workshop participants at Northwestern and at the Symposium on Trust Law in the 21st Century at Cardozo for helpful comments and suggestions; Georgia Alexakis, Pegeen Bassett, Ben Frey, Jason Friedman, Kathryn Hensiak, and Heidi Kuehl for superb research assistance; and the Searle Fund for Policy Research and the Victor Family Research Fund for financial support. 5/17/2006 10:44:53 PM 2466 CARDOZO LAW REVIEW [Vol. 27:6
Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation

Little is known about the factors which lead individuals to start a new firm. This hiatus is due to an absence of data about the gestation processes that precedes a firm birth. Most analyses have used reported self-employment as an indicator of entrepreneurial behavior and resorted to linear additive models to account for "entrepreneurship." The resulting models have not been very successful for predictions and the conception is at odds with the most salient characteristics of entrepreneur's start-up stories. These personal accounts emphasize the unique combination of events that led to a new businesses start-up. A pilot study that identified those developing new firms provides information on firms-in-gestation. Preliminary analysis using Automatic Interaction Detection (AID) explores the unique combinations of events that underlay a decision to start a new firm. Seven-in-ten startups in the U.S. may be initiated by those 25–34 years old with full-time jobs, part-time jobs, or managing another business. There is some limited support for an impact of unemployment or a "liquidity constraint" on initiating start-ups.
The Challenge of Improving the Long-Term Focus of Executive Pay

A consensus is developing that executive compensation in the United States is inadequately linked to long-term company performance, resulting in reckless, short-term decision making. Congress, the Obama administration, and academic commentators have recently embraced dramatic restrictions on the form and holding period of senior executive pay, at least for some companies. A common view is that although regulation of the amount of executive pay would do more harm than good, regulation of form and term is desirable. This Article questions that view. It highlights the challenges of fruitfully regulating the form and term of pay arising from the complexity and diversity of executive pay arrangements, uncertainty as to the underlying reasons and hence appropriate remedies for short-termism, and the conflict between deterring reckless short-term behavior and encouraging sufficient risk-taking to maximize share value over the long term. It analyzes and critiques existing regulatory proposals, and, although not endorsing a regulatory solution, offers two ideas that policy makers should consider if faced with crafting a regulatory response to short-termism: first, focusing regulation solely on the term of pay, leaving form to company discretion, and second, adopting a comprehensive disclosure-based response.
R&D, Learning, and Phases of Economic Growth

The role of learning and R&D in economic development is addressed in an endogenous growth model. When human capital is below a threshold level, the model predicts that skills are accumulated as the only growth-generating activity, whereas both innovation activities and learning drive growth above this level. Hence, an endogenous regime shift is triggered when the level of human capital reaches the threshold level because it becomes profitable to innovate.
The Value of Funds of Hedge Funds: Evidence from Their Holdings

We examine the portfolio holdings of funds of hedge funds FoFs to identify the channels through which FoFs add value for their clients. FoFs offer access to a diversified portfolio of funds that would be costly for constrained investors to manage on their own. Although we find only limited evidence that FoFs exhibit skill when selecting hedge funds, we find strong evidence that FoFs make skillful termination decisions. After FoFs divest from a hedge fund, those hedge funds subsequently underperform and fail more often. Our evidence indicates that FoFs learn and skillfully process information about their portfolio funds after they become investors, enabling them to forecast poor future performance. Our study suggests that FoFs serve an important role as intermediaries in a market characterized by significant frictions and transactions costs. This paper was accepted by Wei Jiang, finance.
Rationality and Stability of Equilibrium in a Search-Theoretic Model of Money

In this short note, I examine the rationality of money-search equilibrium in a basic second-generation money search model, which is a perfectly divisible goods and indivisible money model. I then show that only an inflationary economy can generate a socially and individually rational stable equilibrium. On the basis of this finding, I demonstrate that there is no loss of generality in an analysis that assumes dictatorial buyers in an inflationary economy, since the properties of a dictatorial buyers model are identical to those of a general inflationary economy model. The result of this paper is especially useful for empirical applications since we are generally incapable of finding data showing bargaining power. This result also alerts us against employing the second-generation model to analyze a deflationary economy and commodity money.
Rationing Justice by Rationing Lawyers

This article focuses on the crisis in Missouri's public defender system due to excessive caseloads and how the rationing of lawyers limits access to justice for the accused.
Why Are Smart Cities Growing? Who Moves and Who Stays

ABSTRACT This paper examines why smart cities are growing by investigating who moves to smart cities and who stays. Smart cities are often centers of higher education, so students moving to pursue higher education may play an important role. I find that the greater in-migration to smart cities is mostly due to persons enrolled in higher education. Smart cities are growing in part because in-migrants often stay in the city after completing their education. The growth of smart cities is also mostly attributable to population redistribution within the same state and has little effect on population growth at the state level.
The Conscience of a Court

The author explains his conclusion that the Supreme Court, as a matter of conscience, considers racial discrimination to be good for America. That conclusion, he argues, offers the only plausible account of the Court's repeated insistence on displacing populist efforts to promote racial equality with the Court's own, more-regressive, version of expedient racial politics. Although the Court has had what is at best a checkered history when called upon to adjudicate claims of racial injustice, until now, the contemporary Court might arguably have been accorded the benefit of the doubt. But after its five-to-four ruling in the 2007 Resegregation case, the need to acknowledge the influence of intentional discrimination on the Court's racial decisions seems inescapable. In part I of this article the author discusses the Resegregation case (parents involved in Community Schools v. Seatle School District No. 1) and describes how difficult it is to view that case as anything other than a deliberately disingenuous distortion of Brown v. Board of Education. In part II he describes Krugman's account of the ways in which movement conservatism has enlisted tacit appeals to white racial prejudice as a strategy for prompting white middle-class citizens to vote in ways that are consistent with the interests of the rich rather than the interests of the middle class. Part III describes the author's view of the interaction between movement conservatism and Supreme Court constitutional hegemony, arguing that this interaction creates a judicial plutocracy that can use race to advance the political agenda of the wealthy. The article concludes by expressing the hope that the Supreme Court so overplayed its hand in the Resegregation case that the Court will no longer be able to pass off its conservative racial agenda as the product of detached constitutional exposition. However, the author states that he offers this conclusion with a healthy dose of pessimism, rather than the sense of pragmatic anticipation.
Urban Youth’s Perspectives on Asthma and Asthma Management Educational Implications

Background. Education is widely recognized as a valuable contribution to asthma management. Asthma’s high incidence in urban areas and the documented challenges that poor urban families face in managing asthma make effective education particularly important. However, its potential is undercut when the educational content is not relevant to learners’ experiences with, and beliefs about, asthma. This article focuses on urban adolescents’ understandings of asthma with the goal of identifying directions for more effective and relevant asthma education. Method. This qualitative study employed a culturally relevant stance with the goal of accessing participants’ beliefs and theories about asthma and asthma management. Ongoing focus group meetings with urban adolescents were used as well as semistructured one-on-one interviews. Findings. Data demonstrated that participants understood asthma triggers and symptoms. Data trends also identified participants’ belief that asthma is a condition that cannot be controlle...
The Accrual Anomaly and the Announcement Effect of Short Arbitrage

We investigate the accrual anomaly by examining the stock market reaction around the release of short interest information for firms with high accruals. We show that arbitrage activity, proxied by short interest, focuses on mispricing of firms with high accruals. In particular, we provide evidence that high accrual firms experience significant negative returns when high short interest levels are announced. In contrast, the announcement effect does not vary by short selling activity for low accrual firms. Our findings are consistent with the view that the accrual anomaly is due to overpricing.
Medellín and the Future of International Delegation

Given the rise of globalization and the need for international governance of problems of the commons, the delegation of binding domestic authority to international agents is likely to be an issue of growing importance. This Essay considers the extent to which U.S. law imposes constraints on such delegations and the extent to which those constraints will influence the structure of international delegations. International delegations of domestic authority raise even more profound problems of agency costs and democratic deficit than purely domestic delegations. The Supreme Court’s recent decision in Medellin v. Texas reflects these concerns. By requiring a clear statement in U.S. law before giving domestic effect to the decision of an international agent (in this case the International Court of Justice), the Supreme Court raised the enactment costs of domestic delegations. Because the Court did not find such a clear statement in the treaties at issue in Medellin, it left unaddressed whether the Constitution otherwise constrains international delegations of domestic authority. The Essay considers the implications of four models—the administrative law model, the categorical constraint model, the categorical permission model, and the treaty model—for the policing of international delegations domestically and the improvement of such delegations internationally. It suggests that the treaty model—one by which the President and the Senate must authorize such delegations by treaty— may best reflect the original meaning of the Constitution. The Treaty Clause’s requirement that such delegations be approved by a supermajority ex ante may also help address their ex post agency costs and democratic deficit. author. Stanford Clinton Sr. Professor of Law, Northwestern University Law School. Thanks to Steve Calabresi, David Golove, Eugene Kontorovich, Nelson Lund, Mark Movsesian, Jide Nzelibe, Jim Pfander, Marty Redish, and Ilya Somin for comments on earlier drafts. I am also grateful to participants at the Duke/Harvard Foreign Relations Law Workshop for useful discussion of some of these ideas and to participants at the Princeton conference “The Limits of Constitutional Democracy” for helpful comments on an earlier draft. Finally, I would like to thank Irene Berkey, Northwestern University Law School’s librarian for international law, for her invaluable help with all my international law work. 1724.MCGINNIS.1772.DOC 5/27/2009 6:16:19 PM medellin and the future of international delegation 1713 feature contents