cssi/SciSciGPT-SciSciNet huggingface dataset:
The Death of Law: A Cinematic Vision

Three recent films – Children of Men, V for Vendetta, and Minority Report – sound a warning call by painting stark and contrasting visions of life in the United States and Great Britain in the 21st century. Central to all three stories is the role of law as enforced by the state. Law’s importance to the narrative of film is nothing new. Because it has the power to both liberate and oppress, law presents a ready well of dramatic potential from which to draw inspiration. The movies studied here mine this potential well. The common fear that animates each of these works of art centers on the use of law as a tool of oppression. By projecting this future, the filmmakers hope to teach us something about ourselves in the present. Do they succeed?This Article attempts to answer this question by examining the vision of law presented in the three films. The collective conclusions of the movies strike a pessimistic chord: in the future, the law will be dead. I offer critiques and counter-critiques of this prevailing vision. But no matter the reliability of film’s predictions about what lies ahead, the existence of the films is important in its own right. Criticism need not be accurate to be powerful. Even if darkness is not on the horizon, free societies would do well to periodically remind themselves of what darkness looks like.
Fear of crime and housing prices: Household reactions to sex offender registries☆

Abstract Megan's Law requires public dissemination of information from sex offender registries. Opponents to this controversial law have questioned whether households misinterpret or even use this information. One concern was that the information might simply induce a “fear of crime.” This study finds evidence for both use and misinterpretation of the publicly available information on sex offenders. Using a unique dataset that tracks sex offenders in Hillsborough County, Florida, the results indicate that after a sex offender moves into a neighborhood, nearby housing prices fall by 2.3% ($3500 on average). However, once a sex offender moves out of a neighborhood, housing prices appear to immediately rebound. Surprisingly, these price impacts do not appear to differ in areas near high risk offenders labeled as “predators.”
Are the Insider Trades of a Large Institutional Investor Informed

We use a unique data set to consider whether a large institution's (Fidelity funds) insider trades are informed. Theoretical studies of large informed traders suggest that their information advantage could be greater for buy trades than sell trades, be short- or long-lived, and be exploited by varying the pace of trade execution. Although there is evidence of each of these, Fidelity seems to be informed only for quickly executed buy trades. Other trades outperform a stock market index but not a four-factor return model. This performance profile is consistent with Fidelity's fees, which depend on performance compared to an index.
The Morality of Terrorism

Notwithstanding the current political consensus in the United States, terrorism is inherently morally ambiguous. The Boston Tea Party, which helped lead to American independence, John Brown's raid on the federal arsenal at Harper's Ferry, which helped lead to the abolition of American slavery, and the bombing of the King David Hotel, which helped drive the British out of Palestine and thereby made possible the establishment of the State of Israel, were all terrorist acts under current U.S. law. This paper first explores problems in the definition of terrorism. It then applies the most commonly invoked contemporary moral theories to the problem, concluding that none of those theories offers fully satisfactory answers. Finally, it applies a new moral theory based on evolutionary and game theory. Goodness, the paper asserts, consists of behaviors consistent with a generalized version of Tit for Tat, which I label the "principle of reciprocity". Each culture has evolved its own ethos of reciprocity more or less consistent with that principle. Each such ethos also includes a specification of the We of that ethos - that is, the set of individuals to whom duties of reciprocal cooperative behavior are owed. Terrorism is morally ambiguous, the paper asserts, precisely because it crosses cultural lines - because it involves people not part of our We. The paper offers two precepts for a successful response to terrorism. First, it is necessary to expand our We to include the cultures from which we face terrorist challenges. In other words, it is not sufficient to punish; it is also necessary to develop an ethos of reciprocity that includes those cultures. Necessarily, that shared ethos will not be defined entirely on our terms. Second, the paper offers a game theoretic explanation for the rule of law. Defection is inherently ambiguous: it may constitute punishment, or it may merely be original nastiness deserving of punishment. As a result, self-help punishment can lead to a cycle of mutual defection - in common parlance, the blood feud. Law solves this problem by removing the punitive role to a neutral third party. An approach to terrorism that involves third parties in the punitive process is more likely to succeed, less likely to result in long-term blood feud.
Nonbanks in the Payments System: Vertical Integration Issues

We discuss and evaluate the incentives for vertical expansion and vertical mergers in the payments systems industry paying particular attention to the implications of the existence of network effects in this industry. We assess the incentives of large merchants to extend vertically into payments systems, noting that this incentive is maximized when there is significant market power in payments systems and merchants are not sufficiently compensated for the business they bring to the network.
External finance constraints and the intertemporal pattern of intermittent investment

Abstract Do external finance constraints affect the timing of large investment projects? Simulations of a model with fixed capital-stock adjustment costs establish the hypothesis that external finance constraints lower a firm's investment hazard: the probability of undertaking a large project today as a function of the time since the last project. Hazard model estimation that controls for productivity and adjustment costs supports this hypothesis. Small firms that distribute cash to shareholders have higher hazards than small firms that do not; very small firms have lower hazards than small firms; small stand-alone firms have significantly lower hazards than small segments of conglomerates.
Respect, responsibility, and development

Abstract We develop a theory that explains how two core values – Respect for others and Responsibility – affect productivity, the accumulation of capital, and output per worker. Using data from the World Values Survey, we empirically test the model using a panel dataset that includes 82 countries over six distinct years. We find that these two core values are important to production and that their impact is substantial. We also show that Respect and Responsibility reduce the influence of trust and mitigate the negative macroeconomic effects associated with fractionalized societies. Our results are robust to various treatments for endogeneity and under alternative samples.
FRAND Royalties and Injunctions for Standard Essential Patents

AbstractI develop a stylized model of court procedures that resolve disputes concerning FRAND-encumbered standard essential patents (SEPs). I analyze the effects of injunctions and potential court-imposed FRAND rates on negotiated royalty rates. The SEP holders’ ability to hold-up is constrained by the prospect of the court-imposed license terms in case of disputes, but is not completely eliminated. Possible mechanisms to address the residual hold-up power of the SEP holders are discussed.
When Family Matters

Markel, Jennifer Collins, and Ethan Leib make an important contribution to the growing literature on criminal law and families by documenting the ways that criminal law advantages and burdens actors based on familial status and identifying the potential harms that are unleashed when criminal law recognizes family status. This Feature seeks to complement that contribution by situating the authors' observations within the context of two considerations beyond Privilege or Punish's immediate focus: chronological trends and the practical realities that can shape application of formal law. By distinguishing criminal law's traditions from contemporary trends, the Feature identifies both a gradual de-emphasis of legally recognized family forms and an increased willingness to enforce criminal law within families, regardless of how they are comprised. It concludes by arguing that effective enforcement of criminal law within families often requires the criminal justice system to yield to family relationships, not for the purpose of promoting preferred family forms, but to serve the criminal law's familiar retributive and utilitarian goals. A U T H 0 R. Professor of Law and Associate Dean of Faculty Research, Hofstra Law School. B.A., Reed College; J.D., Stanford Law School. I am grateful to Holning Lau for helpful comments on an earlier draft of this piece. I am also thankful to Toni Aiello, Reference Librarian for the Hofstra Law Library, for research assistance.
Elusive return predictability: Discussion

Two major conclusions follow from this very careful study. First, sophisticated prediction tools do not fare well relative to naive models predicting return based on past sample means. Second, there appear to be short-lived episodes of quite limited return predictability. These conclusions are consistent with all we know from the theoretical developments in financial economics over the past thirty five years and more. Yet how do we reconcile these facts with the widespread perception that market returns are in fact predictable, and that hedge funds in particular are adept at exploiting this predictability?
Bose-Einstein condensation of 162Dy and 160Dy

We report Bose–Einstein condensation of two isotopes of the highly magnetic element dysprosium: 162Dy and Dy. For 162Dy, condensates with 105 atoms form below T = 50 nK. We find the evaporation efficiency for the isotope 160Dy to be poor; however, by utilizing a low-field Fano–Feshbach resonance to carefully change the scattering properties, it is possible to produce a Bose–Einstein condensate of 160Dy with 103 atoms. The 162Dy BEC reported is an order of magnitude larger in atom number than that of the previously reported 164Dy BEC, and it may be produced within 18 s.
How Do Value Creation and Competition Determine Whether a Firm Appropriates Value

How does competition among economic actors determine the value that each is able to appropriate? We provide a formal, general framework within which this question can be posed and answered, and then provide several results. Chief among them is a condition that is both required for, and guarantees, value appropriation. We apply our methodology to (i) assess the familiar notion that uniqueness, inimitability, and competition imply value appropriation, and (ii) determine the value appropriation possibilities for an innovator whose unique discovery is of use to several others who can compete for the right to use it.
The effect of information quality on liquidity risk

Abstract I investigate whether information quality affects the cost of equity capital through liquidity risk. Liquidity risk is the sensitivity of stock returns to unexpected changes in market liquidity; recent asset pricing literature has emphasized the importance of this systematic risk. I find that higher information quality is associated with lower liquidity risk and that the reduction in cost of capital due to this association is economically significant. I also find that the negative association between information quality and liquidity risk is stronger in times of large shocks to market liquidity.
Party Politics or Judicial Independence? The Regime Politics Literature Hits the Law Schools

Focusing on recent books published by Michael Klarman, Mark Tushnet, and Jeffrey Rosen, this article traces the development of a longstanding tradition of Supreme Court scholarship within political science (the "regime politics" literature) and its recent migration to the legal academy. These recent books provide illuminating accounts of the Court’s relationship to the broader political system, and they collectively represent a significant improvement over conventional legalistic accounts of the Court’s decision-making. Nevertheless, in borrowing so heavily from the regime politics tradition, these legal scholars have exacerbated two problems which have been present in that literature from the beginning.
Buying used products for remanufacturing: negotiating or posted pricing

Product reclamation is a critical process in remanufacturing. It is generally assumed in the literature that customers simply want to get rid of their used products without expecting any compensation for them. Some authors have only recently started looking into firms that offer a posted (fixed) price for them. Following recent reports suggesting that customers are increasingly open to bargaining, we compare using a posted price and bargaining to obtain used products. In our analysis, we consider an original manufacturer acting as a monopolist as well as a manufacturer and an independent remanufacturer acting in a duopoly. We analytically show that bargaining is always beneficial to the monopoly manufacturer. In the duopoly case, we distinguish a Cournot competition and a market with the manufacturer as Stackelberg leader. The results of a numerical study show that both firms will use posted pricing in the Cournot competition, especially if bargaining is not costless. By contrast, the remanufacturer can significantly increase his profit by using negotiations if he is the Stackelberg follower.
A Metamorphosis: How Forced Arbitration Arrived in the Workplace

Over the past twenty years, there has been movement away from the public enforcement of statutory workplace rights in favor of a private system of forced arbitration of employment disputes. Forced arbitration — what in legal jargon is commonly referred to as “binding pre-dispute mandatory arbitration” or “employer-promulgated arbitration” — has its roots in the Federal Arbitration Act (“FAA”), a ninety-year-old statute passed by Congress in 1925. It was not until the U.S. Supreme Court’s 1991 watershed decision in Gilmer v. Interstate Johnson/Lane Corporation that the Court allowed statutory employment claims to be submitted to arbitration under the FAA. Forced arbitration was transformed from a rarely used form of dispute resolution into a juggernaut that has changed the nature of statutory enforcement of worker protection laws in the United States.The shift from public enforcement of workplace laws to private forced arbitration has been characterized by a number of trends. This Article examines some of them. Part I sets the stage by providing a brief overview of the distinctions between voluntary arbitration and forced arbitration. Part II describes the elevation of the FAA to a “super-statute” and the limited scope of judicial review of forced arbitration provisions and awards. Part III discusses how the courts have misapplied traditional labor law jurisprudence to justify the expansion of forced arbitration of employment disputes under the FAA. Finally, Part IV explores how forced arbitration has eroded the statutory purposes and protections of our nation’s workplace laws, focusing on the Fair Labor Standards Act (“FLSA”) and Title VII of the Civil Rights Act of 1964 (“Title VII”). These developments have transformed the employee-employer relationship from one that is regulated by worker protection statutes enforced in our public justice system to one that operates in private tribunals where workers are forced to arbitrate their claims as a condition of employment and without due process guarantees.
Culture and Identity-Protective Cognition: Explaining the White-Male Effect in Risk Perception

Why do white men fear various risks less than women and minorities? Known as the “white-male effect,” this pattern is well documented but poorly understood. This article proposes a new explanation: identityprotective cognition. Putting work on the cultural theory of risk together with work on motivated cognition in social psychology suggests that individuals selectively credit and dismiss asserted dangers in a manner supportive of their cultural identities. This dynamic, it is hypothesized, drives the white-male effect, which reflects the risk skepticism that hierarchical and individualistic white males display when activities integral to their cultural identities are challenged as harmful. The article presents the results of an 1,800-person study that confirmed that cultural worldviews interact with the impact of gender and race on risk perception in patterns that suggest cultural-identity-protective cognition. It also discusses the implications of these findings for risk regulation and communication. Fear discriminates. Numerous studies show that risk perceptions are skewed across gender and race: women worry more than men, and minorities more than whites, about myriad dangers—from environmental pollution to
How a drug becomes "ethnic": law, commerce, and the production of racial categories in medicine.

A drug called BiDil is poised to become the first pharmaceutical ever approved by the U.S. Food and Drug Administration (FDA) to treat heart failure specifically in African Americans—and only African Americans. On March 8, 2001, NitroMed, then a privately held biotech firm in Massachusetts, issued a press release triumphantly announcing the receipt of a letter from the FDA “describing the regulatory status and ultimate approvability of BiDil®,” pending the successful completion of a confirmatory trial of the drug in African Americans with heart failure. Press reports have already touted this breakthrough as the first “ethnic” drug to treat heart failure.
What is behavioral economics

Abstract This paper is concerned with defining the characteristics of behavioral economics (BE), identifying the different strands of BE, and carefully comparing BE to mainstream economics (ME). The job of comparison is first to identify the key dimensions (related to its approach to science) along which BE, and its different strands, differs from ME, and second to use these dimensions to illustrate the differences. The dimensions selected for this use are: (1) narrowness, (2) rigidity, (3) intolerance, (4) mechanicalness, (5) separateness, and (6) individualism. After using these dimensions to characterize ME, they are used to characterize BE's strands.
The Clash between Local Courts and Global Economics: The Politics of Judicial Reform in Brazil

This article analyzes the connection between global economic and political trends and Brazilian strategies for judicial reform. A global consensus has emerged in favor of economic liberalization strategies and these strategies require the rule of law to create certainty and predictability. This article maintains that the Brazilian president’s choice of judicial reform proposals is shaped by the government’s attempt to revamp Brazil’s economy and bureaucratic state structure to engage in a single world market, in concert with the global neoliberal paradigm.
Natural Law and the Rhetoric of Empire: Reynolds v. United States, Polygamy, and Imperialism

In 1879, the U.S. Supreme Court construed the Free Exercise Clause for the first time, holding in Reynolds v. United States that Congress could punish Mormon polygamy. Historians have interpreted Reynolds, and the anti-polygamy legislation and litigation that it midwifed, as an extension of Reconstruction into the American West. This Article offers a new historical interpretation, one that places the birth of Free Exercise jurisprudence in Reynolds within an international context of Great Power imperialism and American international expansion at the end of the nineteenth century. It does this by recovering the lost theory of religious freedom that the Mormons offered in Reynolds, a theory grounded in the natural law tradition. It then shows how the Court rejected this theory by using British imperial law to interpret the scope of the First Amendment. Unraveling the work done by these international analogies reveals how the legal debates in Reynolds reached back to natural law theorists of the seventeenth century, such as Hugo Grotius, and forward to fin de siecle imperialists, such as Theodore Roosevelt. By analogizing the federal government to the British Raj, Reynolds provided a framework for national politicians in the 1880s to employ the supposedly discredited tactics of Reconstruction against the Mormons. Embedded in imperialist analogies, Reynolds and its progeny thus formed a prelude to the constitutional battles over American imperialism in the wake of the Spanish-American War. These constitutional debates reached their denouement in the Insular Cases, where Reynolds and its progeny appeared not as Free Exercise cases but as precedents on the scope of  Associate Professor, William & Mary Law School. I am particularly grateful to Sally Gordon for her help with this project. She is a scholar of rare talents and has been a generous friend and mentor to me. I would also like to thank Morris Sheppard Arnold, Christina Burnett, Claudia Bushman, Josh Chafetz, Dave Douglas, Michael Dorf, Mary Dudziak, Chad Flanders, Spencer Fluhman, Terryl Givens, Vivian Hamilton, Paul Horwitz, Chris Jones, Gerard Magliocca, Solangel Maldonado, Paul Reeve, Steven D. Smith, Michael Stein, Bill Van Alstyne, Tim Zick, and participants in a workshop at Cornell Law School and a panel at the Mormon History Association for helpful comments. The standard disclaimers apply. As always, I thank Heather. Washington University Open Scholarship 662 WASHINGTON UNIVERSITY LAW REVIEW [VOL. 88:661 American imperial power. This Article thus remaps key events in latenineteenth-century constitutional history, showing how the birth of Free Exercise jurisprudence in Reynolds must be understood as part of America’s engagement with Great Power imperialism and the ideologies that sustained it.
Is the Monopoly Theory of Trademarks Robust or a Bust

The monopoly theory of trademarks would antitrustize trademark law by incorporating antitrust legal precedent, economics, policies, reasoning, and terminology. The theory is comprised of six interrelated postulates contained in trademark law and scholarship. The postulates are (1) trademarks are monopolies; (2) trademark monopolies are like illegal antitrust monopolies because both harm competition; (3) trademark law is like antitrust law because both value competition; (4) trademark law is like antitrust law because both apply economic methodology to product markets; (5) an antitrust lens can help one understand trademarks and trademark law; and (6) an antitrust lens can help one decide whether a trademark is functional, generic, or infringed. The sixth postulate antitrustizes important recurring trademark issues. It is advanced by numerous legal scholars, and has gained traction in the courts. I examine each of the postulates to determine whether the monopoly theory of trademarks is robust, consistent with what we know about trademarks and their effects in product markets, and capable of enhancing our understanding of what currently is uncertain or unknown; or whether it is a bust, failing to meet these criteria.
An empirical application of the EVA® framework to business cycles

Abstract Following financial concepts like duration and economic value added (EVA®) we estimate the impact of interest rate movements on firms that are more and less roundabout . We find that firms that are more roundabout, that is, work with expected cash-flows with higher duration , are more sensitive to interest rate movements. To the extent that monetary policy is able to move the discount rate used by investors, monetary policy changes the relative present value of any investment project and therefore affects resource allocation. We show evidence that this effect is present in the U.S. in the years prior to the subprime crisis.
Do Director Networks Matter for Financial Reporting Quality? Evidence from Audit Committee Connectedness and Restatements

This study examines the effect of audit committee connectedness through director networks on financial reporting quality, specifically the misstatement of annual financial statements. Using network...
A Hayekian analysis of the term structure of production

The Hayekian triangle (Hayek 1931, p. 39; subsequently developed by Hayek 1941; 1966; 1969) is used to analyze the structure of production in the United States. Using 1959–2000 monthly data, the relationship between government security interest rates and resource employment in several production sectors is examined. When interest rates increase, the structure of production becomes less roundabout, redistributing productive resources away from producer goods toward consumer goods. When interest rates rise, higher rates of return in production are necessary to compete with financial instruments such as relatively higher-yielding government bonds. This is manifested in a shifting of resources from early to late stages of production and can be shown as a shortening of the base of the Hayekian triangle. In the most stylized case, the interest rate is proportional to the slope of the hypotenuse of the Hayekian triangle. The steeper hypotenuse reflects the higher interest rate and consumers’ increased time preference—in this higherinterest environment, consumers are less willing to wait for immediate consumption goods. Conversely, when interest rates fall, the structure of production becomes more roundabout, redistributing marginal resources THE QUARTERLY JOURNAL OF AUSTRIAN ECONOMICS VOL. 5, NO. 2 (SUMMER 2002): 17–33
The Applicant Attribution‐Reaction Theory (AART): An Integrative Theory of Applicant Attributional Processing

This article proposes a new theory called the Applicant Attribution-Reaction Theory (AART) to better understand attributional processes in the formation of applicant reactions. The theory proposes that applicants' affective, behavioral, and cognitive reactions, such as fairness, test perceptions, test performance, and motivation, are fundamentally driven by an attributional process. A key implication of the theory is that perceptions such as fairness and test attitudes carry little explanatory power; instead they are consequences of attributional processing. We provide a brief review of dominant applicant reactions frameworks, review the social psychological literature on attributions, and present the theory. We then contrast the theory to existing conceptualizations, and finally describe its potential for better understanding several key topics in applicant reactions, including the justice judgment process, test performance, and racial subgroup differences. The theory has the potential to integrate many diverse perspectives on applicant reactions, and provides numerous directions for future research and practice.
An Environmental Justice Critique of Comparative Advantage: Indigenous Peoples, Trade Policy, and the Mexican Neoliberal Economic Reforms

The free market reforms adopted by Mexico in the wake of the debt crisis of the 1980s and in connection with the North American Free Trade Agreement (NAFTA) have jeopardized the physical and cultural survival of Mexico’s indigenous peoples, increased migration to the United States, threatened biological diversity in Mexico, and imposed additional stress on the environment in the United States. Despite these negative impacts, NAFTA continues to serve as a template for trade agreements in the Americas. Unless this template is fundamentally restructured, future trade agreements may replicate throughout the Western hemisphere many of the economic, ecological and social dislocations experienced under NAFTA. Using Mexico as a case study, the article examines the impact of trade liberalization on indigenous peoples and on the environment. Critiquing Mexico's neoliberal economic reforms through the framework of environmental justice, the article highlights some of the theoretical and practical limitations of the theory of comparative advantage, which serves as the justification for the free market economic policies promoted by international trade and financial institutions. The article urges policy-makers to integrate trade, human rights, and environmental policy instead of criminalizing immigrants or militarizing the U.S.-Mexican border. The article concludes by using the paradigm of environmental justice to outline the elements of a more equitable and sustainable approach to international trade law and policy that supports the livelihoods of indigenous and rural communities and protects the planet's finite natural resources.
Manager-Investor Conflicts in Mutual Funds

Half of all of U.S. households own shares in one or more mutual funds, either directly or through personal or employer-sponsored retirement accounts. This article describes the structure and regulation of mutual funds and the resulting incentives facing those who make decisions for the funds. After providing some basic institutional details, it focuses on the cash flows from mutual fund investors to fund managers, brokers, and other third parties and the associated conflicts of interest. The article concludes with a summary of recent legal proceedings against mutual fund managers and brokers based on improper trading practices and regulatory proposals to curb those practices.
Abortion and Compelled Physician Speech

Informed consent mandates for abortion providers may infringe the First Amendment's freedom of speech. On the other hand, they may reinforce the physician's duty to obtain informed consent. Courts can promote both doctrines by ensuring that compelled physician speech pertains to medical facts about abortion rather than abortion ideology and that compelled speech is truthful and not misleading.
A Valuation Formula for Firms in the Early Stage of their Lifecycle

We develop a valuation formula for analyzing high growth firms using the stages of an industry lifecycle. Our model is best suited for start-up firms with low (or negative) earnings and low sales. Our formula uses start-up firm data and captures the firm’s growth potential by incorporating data about two key stages along the lifecycle. One stage corresponds to the largest firm in the industry and the other to the firm situated at the inflection point of the S-shaped curve describing the lifecycle. We test the formula by examining the biotechnology industry in the late 1990s. An empirical analysis of the biotechnology industry reveals an important correlation between market values growth rates and assets growth rates, which is predicted by our formula. We find that on average, our formula underestimates the actual market value of biotechnology start-up firms by about 15%.
Uncovered interest-rate parity over the past two centuries

Abstract We study the validity of uncovered interest-rate parity by constructing ultra-long time series that span two centuries. The forward-premium regressions yield positive slope estimates over the whole sample. The estimates become negative only when the sample is dominated by the period of 1980s. We also find that large interest-rate differentials have significantly stronger forecasting powers for currency movements than small interest-rate differentials. Furthermore, when we regress domestic currency returns on foreign bonds against returns on domestic bonds as an alternative test of the parity condition, the null hypotheses of zero intercept and unit slope cannot be rejected in most cases. These results are consistent with a world in which expectations formation is highly imperfect and characterized on the one hand by slow adjustment of expectations to actual regime changes and on the other by anticipations for extended periods of regime changes or other big events that never materialize. An historical account of expected and realized regime changes adds credence to this explanation and illustrates how uncovered interest-rate parity holds over the very long haul but nevertheless can be deviated from over long periods of time due to ex post-expectation errors.
Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data

One of the alleged benefits of the recent global movement to strengthen intellectual property rights (IPRs) is that such reforms accelerate transfers of technology between countries. The paper examines how technology transfer among U.S. multinational firms changes in response to a series of IPR reforms undertaken by 12 countries over the 1982-99 period. The analysis of detailed firm-level data reveal that royalty payments for intangibles transferred to affiliates increase at the time of reforms, as do affiliate research and development (R&D) expenditures and total levels of foreign patent applications. Increases in royalty payments and R&D expenditures are more than 20 percent larger among affiliates of parent companies that use U.S. patents more extensively prior to reform and therefore are expected to value IPR reform most.
Managing diversity by creating team identity

Abstract This paper explores the extent to which team identity can deter shirking and free-riding behavior in a team production setting. Team identity is manufactured and identification is enhanced by a variety of means. Created team identity is chosen over existing team identity to ensure that all subjects recognize their own (and others’) team identity. Subjects then participate in a repeated-play public goods game, framed as a team production problem. Analysis of the experiments compares aggregate team decisions based on the strength of team identity.
Did Time Inconsistency Contribute to the Great Inflation? Evidence from the FOMC Transcripts

We use evidence from detailed records of FOMC deliberations to argue that time inconsistency theory can help explain the excessive monetary expansion that characterized Arthur Burns’s tenure as Federal Reserve Chairman (1970–1978). The records suggest that the Fed perceived a Phillips curve tradeoff and political pressures that made it difficult to adopt disinflationary policies; the tendency toward excessively expansionary policy was exacerbated by the short-run planning horizon the Committee faced in each of its meetings. We argue that comparative static predictions of the time inconsistency model are consistent with the rise of inflation during the Burns years and its subsequent fall. THE TIME inconsistency problem is often invoked to explain an inflationary bias alleged to plague central banks. 1 The assumptions behind the reasoning are as follows. First, the central bank is assumed to choose policy actions on a period-by-period basis in each of its meetings; it is not constrained by rules, but instead uses discretion in each period. Second, public expectations of inflation for the upcoming period are viewed as given at the time of the meeting. Third, the economy can be characterized by an expectational Phillips curve; i.e., if inflation is higher than the public expects, unemployment will temporarily fall below its natural rate. Fourth, the central bank values a marginal reduction of unemployment below its natural rate, but is also averse to higher inflation. Finally, it is assumed that expectations are rational. With predetermined inflation expectations, the central bank sees an opportunity to lower unemployment via surprise money growth in each of its meetings. If expected inflation were zero, for example, the reduction in unemployment created by a money growth surprise would be ‘‘worth’’ the modest increase in inflation. However, a problem arises when public expectations are rational. The public, understanding the central bank’s objectives, will correctly anticipate monetary stimulus, rendering the effort to reduce unemployment ineffective. Instead, the result is inflation. At the equilibrium level of inflation, the marginal gains from unemployment reduction are balanced by the added costs of additional inflation in the current
Conditional Return Smoothing in the Hedge Fund Industry

We show that if true returns are independently distributed and a manager fully reports gains but delays reporting losses, then reported returns will feature conditional serial correlation. We use conditional serial correlation as a measure of conditional return smoothing. We estimate conditional serial correlation in a large sample of hedge funds. We find that the probability of observing conditional serial correlation is related to the volatility and mag nitude of investor cash flows, consistent with conditional return smoothing in response to the risk of capital flight. We also present evidence that conditional serial correlation is a leading indicator of fraud.
Universal banking and the performance of German firms

Abstract We empirically investigate the influence of German universal banks on the performance of German firms. We take into account banks’ control rights from equity ownership, banks’ proxy-voting rights, and the concentration of control rights from equity ownership (which includes complex forms such as pyramids, cross-shareholdings, and stocks with multiple votes). We also account for voting restrictions and the German codetermination system (under which employees of large firms have control rights that are unrelated to equity ownership). We find that firm performance improves to the extent that equity control rights are concentrated. Moreover, bank control rights from equity ownership significantly improve firm performance beyond what nonbank blockholders can achieve.
A Response to Professor Goldberg: An Anticompetitive Restraint by Any Other Name...

In ignoring the facts of the Three Tenors case and the transactions costs of legal rulemaking, Professor Goldberg would unnecessarily complicate antitrust law to the detriment of consumers. Contrary to his assertions, the FTCs opinion does not favor ownership over contract. The parties could have chosen to coordinate Three Tenors products and promote a brand, but they did not. Indeed, their contract explicitly provided otherwise. For a small class of cases in which the parties restrain basic forms of competition such as price or advertising without a legitimate claim of consumer benefit antitrust law avoids the costs of finding market power. In any event, the facts of the Three Tenors case provide a natural experiment revealing that the agreement the Commission proscribed in fact harmed consumers.
The Guise of the Bad

My topic is the possibility of acting in the belief that the action is bad and for the reason that it is, as the agent believes, bad. On route, I examine another question – namely whether agents can, without having any relevant false beliefs, perform actions motivated by the badness of those actions. The main worry is the compatibility of action for the sake of the bad with the thesis of the Guise of the Good (roughly that actions undertaken with an intention to perform them are undertaken because they are, as the agents see things, good in some respects). The examina-tion is helped by considering the way reason explanations and the more widely understood normative explanations can explain actions, in light of the conditions for the rationality of actions and the bearing of masking beliefs (broadly: self-deceived beliefs that mask the agents’ true motives or reasons from them) on the explanation of their actions. The discussion leads to consideration of the possibility of various conceptual mistakes. Given the variety of human motivations, I focus on the interpretation of one case: the Luciferian motive, understood, roughly, as the drive to defy the limits of thought or of rational thought.
Alcohol and student performance: Estimating the effect of legal access

We consider the effect of legal access to alcohol on student achievement. Our preferred approach identifies the effect through changes in one's performance after gaining legal access to alcohol, controlling flexibly for the expected evolution of grades as one makes progress towards their degree. We also report RD-based estimates but argue that an RD design is not well suited to the research question in our setting. We find that students' grades fall below their expected levels upon being able to drink legally, but by less than previously documented. We also show that there are effects on women and that the effects are persistent. Using the 1997 National Longitudinal Survey of Youth, we show that students drink more often after legal access but do not consume more drinks on days on which they drink. Language: en
Death to the Log-Linearized Consumption Euler Equation! (And Very Poor Health to the Second-Order Approximation)

This paper shows that standard empirical methods of estimating log-linearized consumption Euler equations cannot successfully uncover structural parameters like the coecient of relative risk aversion from a dataset of simulated consumers behaving exactly according to the standard model. Furthermore, consumption growth for the simulated consumers is very highly statistically related to predictable income growth { and thus standard ‘excess sensitivity’ tests would reject the hypothesis that consumers are behaving according to the standard model. Results are not much better for the second-order approximation to the Euler equation. The paper concludes that empirical estimation of consumption Euler equations should be abandoned, and discusses some alternative empirical tests of consumption models that are not subject to the problems of Euler equation estimation.
Community isomorphism and corporate social action

We present a model of how institutional pressures at the community level shape corporate social action—behaviors and practices that extend beyond immediate profit maximization goals and are intended to increase social benefits or mitigate social problems for constituencies external to the firm—within the metropolitan area where firms are headquartered. We propose that community isomorphism influences the nature and level of corporate social action within communities and conclude with theoretical implications emphasizing the community as the focal unit of analysis for understanding corporate social action.
Trickle-Down Consumption

Abstract We document that nonrich households consume a larger share of their current income when exposed to higher top income and consumption levels. Permanent income, wealth effects, and upward local price pressures cannot provide the sole explanation for this finding. Instead, we show that the budget shares that nonrich households allocate to more visible goods and services rise with top income levels, consistent with status-maintaining explanations for our primary finding. Nonrich households might have saved up to 3% more annually by the mid-2000s had incomes at the top grown at the same rate as median income since the early 1980s.
Terrorism and Civil War: A Spatial and Temporal Approach to a Conceptual Problem

What is the relationship between civil war and terrorism? Most current research on these topics either explicitly or implicitly separates the two, in spite of compelling reasons to consider them together. In this paper, we examine the extent to which terrorism and civil war overlap and then unpack various temporal and spatial patterns. To accomplish this, we use newly geo-referenced terror event data to offer a global overview of where and when terrorist events happen and whether they occur inside or outside of civil war zones. Furthermore, we conduct an exploratory analysis of six separate cases that have elements of comparability but also occur in unique contexts, which illustrate some of the patterns in terrorism and civil war. The data show a high degree of overlap between terrorism and ongoing civil war and, further, indicate that a substantial amount of terrorism occurs prior to civil wars in Latin America, but yet follows civil war in other regions of the world. While the study of terrorism and of civil war mostly occurs in separate scholarly communities, we argue for more work that incorporates insights from each research program and we offer a possibility for future research by considering how geo-referenced terror and civil war data may be utilized together. More generally, we expect these results to apply to a wide variety of attitudes and behaviors in contentious politics.
The Obese and the Elite: Using Law to Reclaim School Sports

Sports in schools are a uniquely American phenomenon. Athletic programs flourish in high schools, colleges, and universities with traditionally very little interference by legislatures or courts. The most notable, if not limited, exception to this deference is Title IX of the Civil Rights Act of 1964 (Title IX), which prohibits educational institutions receiving federal financial assistance from discriminating on the basis of gender. As applied to athletic programs, Title IX is often cited as a public policy success. The law has led to the creation of meaningful sports participation opportunities for women and girls and shaped new norms for sports in general by sending a message that women and girls are entitled to participate on terms equal to men and boys. Statistics amply demonstrate that women's and girls' athletic participation rates since Congress passed the statute have increased dramatically. Despite these gains, however, many women and girls, especially those of color and from disadvantaged backgrounds, still do not participate in sports in numbers comparable to males. More broadly, data show that most children do not get nearly enough daily physical activity, and many consider childhood obesity a national crisis. These statistics occur against the backdrop of media attention and social science research persistently highlighting troubling issues with the elite, "win-at-all-costs" model for athletics that predominates in our schools and its effects on children's ability and willingness to participate in sports. * Associate Professor of Law and Director, Center for Sport and the Law, University of Baltimore School of Law. I would like to thank Bryce Ziskind for outstanding assistance with research.
Stand by Your First Amendment Values- Not Your Ad: The Court's Wrong Turn in McConnell v. FEC

Under the Bipartisan Campaign Reform Act (BCRA), candidates must disclose the funding for all electioneering communication and state personally that they approve their campaign ads' messages. This paper argues that these provisions of the BCRA are unconstitutional. Though only briefly addressed in the Supreme Court's landmark decision in McConnell v. FEC, these provisions impose grave burdens on political speech while bearing only a tenuous relationship to the government's anticorruption and informational interests.