cssi/SciSciGPT-SciSciNet huggingface dataset:
Audit Strategies and Multiple Fraud Opportunities of Misreporting and Defalcation

We examine how an auditor assesses the risk of fraud and formulates an audit plan when the auditee has the opportunity to commit various types of fraud. Unlike previous studies, the audi-tee can misappropriate assets (defalcation), misreport financial information (fraudulent financial reporting), or misreport financial information in combination with defalcation. Our results identify four possible equilibria whose characteristics depend on the auditee's relative rewards and penalties from the various types of fraud, the cost of audit effort, and expectations about the auditee-firm's performance. When the cost of audit effort is sufficiently small, fraud risk assessment depends on the auditee's rewards and penalties associated with each type of fraud, but not on the auditor's beliefs about firm performance. The auditor develops an audit plan that focuses on the type of fraud the auditee is most motivated to commit, and in turn, the audit plan deters all other types of fraud.
OPTIMAL INFERENCE IN REGRESSION MODELS WITH NEARLY INTEGRATED REGRESSORS

THIS PAPER CONSIDERS the problem of conducting inference on the regression coefficient in a bivariate regression model with a highly persistent regressor. Several papers that studied the problem of testing regression hypotheses in the presence of nearly integrated regressors have pointed out its nonstandard nature and/or proposed asymptotically valid testing procedures. 2 On the other hand, we know of only one paper, Stock and Watson (1996), that has obtained testing procedures with demonstrable optimality properties in a regression model with nearly integrated regressors. Stock and Watson (1996) investigated tests that maximize a weighted average (local asymptotic) power criterion among tests of a certain level. The functional form of tests obtained by maximizing a weighted average power criterion depends on the underlying weighting function, implying that no uniformly most powerful (UMP) test exists among the class of all tests that satisfy only a level restriction. It therefore seems natural to ask whether it is possible to find “reasonable” restrictions subject to which a UMP test (of a hypothesis on the regression coefficient in a bivariate regression model with a nearly integrated regressor) can be derived. In an attempt to provide an affirmative answer to that question, the present paper develops attainable finite sample and asymptotic efficiency bounds 1
Firm Organization and the Structure of Retail Markets

This paper analyzes the structure of retail markets by highlighting the differential pattern exhibited across local markets by two different types of firm organization: chain stores versus stand-alone stores. Data from retail alcoholic beverage industry in California suggest that the number of chain stores is proportional to city size. Further evidence on the sales of establishments indicates that average size of a stand-alone store virtually is invariant to city size, whereas chain stores appear to get larger as city size increases. Theories consistent with these findings are discussed.
LEVERAGING ALLIANCE NETWORKS THROUGH INFORMATION TECHNOLOGY : EVIDENCE FROM PANEL REGRESSIONS

Despite the expectation that Information Technology (IT) is valuable in managing and leveraging multiple alliance relationships and the resultant alliance networks, a paucity in theoretical and empirical examination persists in the literature. Employing social network analysis (SNA), we examined whether IT investment moderates the effect exerted by a firm’s structural properties in alliance networks (direct partners, indirect partners, and structural holes) on its performance. Drawing upon previous research on dynamic capabilities and the knowledge-based view of the firm, we propose a conceptual model and discuss a potential underlying mechanism. Our empirical analysis of 306 U.S. public firms, which provide 971 observations during an 8-year span from 1998 to 2005, suggests that IT investment helps firms to (1) manage the burden of increasing complexity in coordinating multiple alliances, and (2) overcome the relative informational disadvantage resulted from their limited access to indirect partners and structural holes.
Should Pets Inherit

On August 20, 2007, billionaire hotelier Leona Helmsley died, survived by her brother, four grandchildren, twelve great-grandchildren, and her beloved companion of eight years, a white Maltese dog named Trouble. One week later came news that shocked the world. Helmsley left $12 million to Trouble. Across the globe, reporters, readers, lawyers, and law professors alike greeted the news with outrage and derision. Critics called the legacy “obscene,” “ridiculous,” and, as lawyer Mickey …
Rule-based forecasting: development and validation of an expert systems approach to combining time series extrapolations

This paper examines the feasibility of rule-based forecasting, a procedure that applies forecasting expertise and domain knowledge to produce forecasts according to features of the data. We developed a rule base to make annual extrapolation forecasts for economic and demographic time series. The development of the rule base drew upon protocol analyses of five experts on forecasting methods. This rule base, consisting of 99 rules, combined forecasts from four extrapolation methods the random walk, regression, Brown's linear exponential smoothing, and Holt's exponential smoothing according to rules using 18 features of time series. For one-year ahead ex ante forecasts of 90 annual series, the median absolute percentage error MdAPE for rule-based forecasting was 13% less than that from equally-weighted combined forecasts. For six-year ahead ex ante forecasts, rule-based forecasting had a MdAPE that was 42% less. The improvement in accuracy of the rule-based forecasts over equally-weighted combined forecasts was statistically significant. Rule-based forecasting was more accurate than equal-weights combining in situations involving significant trends, low uncertainty, stability, and good domain expertise.
The Daubert/Kumho Implications of Observer Effects in Forensic Science: Hidden Problems of Expectation and Suggestion

After the Supreme Court's decision in Kumho Tire v. Carmichael and the recent amendment of Federal Rule of Evidence 702, proffers of expert testimony will have to be found reliable for the particular application of the asserted expertise to the "task at hand." That is, expertise which is reliable in some global sense, which might apply to other cases but not to the particular application before the court, does not satisfy the requirements for admission. With that in mind, this article examines the phenomoenon of "observer effects" and the vulnerability of forensic science examinations to such observer effects. Observer effects occur when the results of an examination are distorted by the context and state of the observer, including the observer's expectations and desires. The article reviews the findings and practices of a range of scientific fields concerning such observer effects and their control, with special attention to the relevant research and theory from cognative and social psychology. This literature establishes that in virtually every area of human judgment, such observer effects have a relentless and sometimes dramatic effect on the accuracy of results. The article then examines current forensic science practice in light of that research, concluding that forensic science practice is far behind most scientific fields in controlling for such effects, leaving the reliability and accuracy of many forensic science results in doubt. The article then suggests practical ways in which forensic science practice can be changed to reduce such problems, such as the adoption of blind testing regimes. Finally, the article analyzes the current state of the law under Kumho Tire and Rule 702, concluding that the results of forensic science examinations are in danger of being excluded if their reliability continues to be undermined by the failure to control observer effects.
Pain management standards in the eighth edition of the Guide for the Care and Use of Laboratory Animals.

The eighth edition Guide for the Care and Use of Laboratory Animals sets standards for diverse laboratory animal care and use practices. It frames its standards as performance, engineering, and practice standards, with a strong emphasis on performance standards, allowing for multiple routes to clearly defined outcomes. Standards intended to be upheld rigorously are indicated through the use of must in the description, and those accommodating more flexibility are indicated through may and should statements. With respect to pain management standards, a fourth type of standard—the jurisdictional standard—has been prevalent through all 8 editions of the Guide. Under jurisdictional standards, specific methods and outcomes for measuring, preventing, or alleviating pain are not detailed, but the various jurisdictions of veterinarian, investigator, and IACUC are elaborated. Although data on pain management in laboratory animals has expanded greatly since the 1996 Guide, the eighth (2011) edition does not contain major new standards or guidance regarding animal pain management. Requirements for veterinary and IACUC involvement remain as in prior editions, and the duty of veterinarians and scientists to stay abreast of new developments is expected to drive refinement of animal pain management institution by institution. The current article details selected specific pain management standards in the 2011 Guide, lists topics in pain management for which the Guide does not set clear standards, and suggests possible standards for those topics.
Reparations Theory and Postcolonial Puerto Rico: Some Preliminary Thoughts

Applying recent Critical Race Theory reparations discourse to inform Puerto Rico's transition to any one of the three legitimate post-colonial status options.
China and the Future of International Adjudication

Traditionally, the People’s Republic of China (PRC) has shunned participation in international adjudication, preferring to settle all disputes through direct negotiations. But in the past two decades, this wholly negative approach to international courts and arbitration tribunals has begun to shift. In addition to the PRC’s acceptance and active participation in the Dispute Settlement Body of the World Trade Organization, the PRC has also accepted limited jurisdiction for arbitration under the International Center for the Settlement of Investment Disputes (ICSID) and the International Tribunal for the Law of the Sea. Despite this shift, the PRC still follows a policy of strictly limiting its exposure to international adjudicatory mechanisms. This strategy, which is similar to that practiced by the United States, suggests that international adjudication faces difficult prospects in the long term.
The Predictive Power of S&P 500 Option Prices and the Stock Market Crash of 2008-2009

Option market prices have often been regarded as a window on investor sentiment about the future price behaviour of the underlying asset. Such market prices can be different than their corresponding model prices, a phenomenon revealed by implied volatility plots exhibiting “smiles” or “smirks”. Using the unique capabilities of Bayesian-based empirical methods, a four-moment risk-neutral specification is determined that largely eliminates market and model price differences. The risk-neutral density derived for a sample of S&P 500 call option prices during 2008-2009 uncovers significant market under-pricing reinforced by anomalous volatility skews that reveal bearish investor sentiment clearly signalling the pending equity market collapse
Detention and Interrogation in the Post-9/11 World

Our detention and interrogation policies in the wake of the terrorist attacks of 9/11 have been a disaster. This paper, delivered as a Donahue Lecture at Suffolk University Law School in February 2008, explores the dimensions and source of that disaster. It first offers a clear and intelligible narrative of the construction and implementation of executive detention and interrogation policy and then analyzes the roles played by the different branches of government and the American people in order to understand how we have ended up in our current situation.
Scholar’s Privilege: A Normative Primer

Professor Stanley Fish’s forthcoming book, Versions of Academic Freedom: From Professionalism to Revolution, highlights the diverse topics and nuanced analyses in any thoughtful discussion of academic freedom. This commentary focuses on one such micro-issue under the umbrella of academic freedom – “scholar’s privilege.” Specifically, we outline and posit on the freedom of academics not to disseminate their unpublished research, particularly when subject to a litigant’s subpoena.
Rain or Shine: Where is the Weather Effect?

There is considerable empirical evidence that emotion influences decision-making. In this paper, we use a database of individual investor accounts to examine the weather effects on traders. Our analysis of the trading activity in five major US cities over a six-year period finds virtually no difference in individuals’ propensity to buy or sell equities on cloudy days as opposed to sunny days. If the association between cloud cover and stock returns documented for New York and other world cities is indeed caused by investor mood swings, our findings suggest that researchers should focus on the attitudes of market-makers, news providers or other agents physically located in the city hosting the exchange. NYSE spreads widen on cloudy days. When we control for this, the weather effect becomes smaller and insignificant. We interpret this as evidence that the behaviour of market-makers, rather than individual investors, may be responsible for the relation between returns and weather.
The Case for Value Billing in Chapter 11

This article explores the forces contributing to very high professional fees in large chapter 11 cases and suggests that lawyers might want to consider valuing their services in ways other than the traditional billable hour approach.
Direct Participation in Hostilities as a War Crime: America's Failed Efforts to Change the Law of War

This article addresses, in part, the question of what to do with civilian direct participants in hostilities who are not killed by opposing armed forces, but are captured. Specifically, the article address the potential criminal prosecution of detained DPHs. The ability to detain provides an opportunity to the detaining power to prosecute the DPH “for an offence arising out of the hostilities.” But is it a crime for someone who does not meet the Geneva Convention requirements for POW status to directly participate in hostilities? In other words, are all DPHs criminals? If so, are they war criminals, or, rather, common domestic criminals? The prevailing international view is that direct participation in hositilities in and of itself is not a war crime. Contrary to the prevailing international view, the United States has attempted, through the military commissions of Guantanamo, to treat direct participation in hostilities as a war crime. This article examines that effort, including the prosecutions of David Hicks and Omar Khadr, and the failed prosecution of Mohammed Jawad for alleged direct participation in hostilities. The article concludes that America's effort to convert all fighting against the U.S. by unprivileged enemy belligernets into a war crime has been a failure.
CHARMONIUM SPECTROSCOPY FROM LATTICE QCD

I give a short review of the current status of lattice QCD calculations of the spectrum of charmonium.
Auction Hosting Site Pricing and Market Equilibrium with Endogenous Bidder and Seller Participation

Abstract This paper characterizes the payoffs and pricing policies of auction hosting sites when both the bidders’ and the sellers’ participation is endogenous. Sellers have heterogeneous opportunity costs and make a listing decision depending on the listing fee and the expected revenue from the sale. On the other side of the market, factors such as facility in navigating an interface layout and prior bidding experience result in bidder heterogeneity with respect to participation costs. Bidders participate if their ex ante expected payoff from searching the site exceeds their participation costs. The auction site earns revenue by setting positive listing fees, trading off the increased revenue per seller resulting from a higher fee with the revenue reduction from the loss of sellers. Though this appears to be a classic monopoly problem, there are important differences. The reduction in the number of sellers participating in a site has feedback effects, as it affects the number of bidders who choose to visit that site, which in turn again affects the attractiveness of the site to sellers, and thus further reduces seller participation. In this environment the monopolist’s ability to extract rents is severely limited, even if one considers rent extraction from the seller side of the market only. It is demonstrated that the inverse demand curve is flatter than the demand curve obtained from the (inverse) distribution of seller costs. Moreover, the inverse demand curve has at least one and possibly multiple flat segments, leading to discontinuities in the profit function. Thus, small changes in the environment can lead to large changes in the optimal fee and market participation.
Making Sense of Beta, Size, and Book-to-Market

We know from empirical studies that stocks of small companies with high book-to-market ratios have provided higher returns than stocks of large companies with low book-to-market ratios. But do senior executives, outside directors and financial analysts believe that? We show that senior executives, outside directors and financial analysts surveyed annually by Fortune magazine rank companies as if they believe that good companies are large companies with low book-to-market ratios. They rank stocks as if they believe the opposite of what empirical research has demonstrated; they rank stocks as if they believe that good stocks are stocks of good companies. We argue that a misperception of the relationship between the quality of a company and the expected rate of return of its stock underlies the superior performance of stocks of small, high book-to-market companies and the weak relationship betweenrealized returns and beta.
Estimation in nonparametric regression model with additive and multiplicative noise via Laguerre series

We look into the nonparametric regression estimation with additive and multiplicative noise and construct adaptive thresholding estimators based on Laguerre series. The proposed approach achieves a...
Hubble Space Telescope images of Stephan's Quintet: Star cluster formation in a compact group environment

Analysis of Hubble Space Telescope Wide Field Planetary Camera 2 images of Stephans Quintet, Hickson Compact Group 92, yielded 115 candidate star clusters (with V (I \ 1.5). Unlike in merger remnants, the cluster candidates in Stephans Quintet are not clustered in the inner regions of the gal- axies; they are spread over the debris and surrounding area. Speci—cally, these sources are located in the long sweeping tail and spiral arms of NGC 7319, in the tidal debris of NGC 7318B/A, and in the intrag- roup starburst region north of these galaxies. Analysis of the colors of the clusters indicate several dis- tinct epochs of star formation that appear to trace the complex history of dynamical interactions in this compact group.
An equilibrium approach to international merger policy

Abstract I treat international merger policy as a repeated veto game. I show that there exists a unique efficient equilibrium within a particular class of trigger strategy equilibria. I then consider a series of comparative statics and extensions: (a) if for some exogenous reason one of the countries becomes more lenient towards mergers, than the other country becomes more lenient as well; (b) merger remedies increase the probability that a merger is approved and increase total welfare; (c) the effects of a merger wave are magnified by the equilibrium approval policy.
Sex differences in mapping and rhythm outcomes of a repeat atrial fibrillation ablation

Objective The risk of procedure-related complications and rhythm outcomes differ between men and women after atrial fibrillation catheter ablation (AFCA). We evaluated whether consistent sex differences existed in mapping and rhythm outcomes in repeat ablation procedures. Methods Among 3282 patients in the registry, we analysed 443 consecutive patients (24.6% female, 58.5±10.3 years old, 61.5% with paroxysmal atrial fibrillation) who underwent a second AFCA. We compared the clinical factors, mapping, left atrial (LA) pressure, complications and long-term clinical recurrences after propensity score matching. Results LA volume index (43.1±18.6 vs 35.8±11.6 mL/m2, p Conclusions During repeat AFCA procedures, PV reconnections were lower in women than in men, and the existence of extra-PV triggers and an LA pressure elevation were more significant, which resulted in poor rhythm outcomes. Trial registration number NCT02138695.
Fundamental Theorem of Asset Pricing Under Transaction Costs and Model Uncertainty

We prove the fundamental theorem of asset pricing for a discrete time financial market where trading is subject to proportional transaction costs and the asset price dynamic is modeled by a family of probability measures, possibly nondominated. Using a backward-forward scheme, we show that when the market consists of a money market account and a single stock, no-arbitrage in a quasi-sure sense is equivalent to the existence of a suitable family of consistent price systems. We also show that when the market consists of multiple dynamically traded assets and satisfies efficient friction, strict no-arbitrage in a quasi-sure sense is equivalent to the existence of a suitable family of strictly consistent price systems.
Duty to rescue? Exploring legal analysis through the lens of photojournalists’ storytelling dilemmas

In depicting scenes of tragedy, what happens when photojournalists become the story? Do photojournalists have a duty to rescue those they photograph? Should they? This article will use a series of iconic images – and the stories of the photojournalists behind the camera – to illustrate how exploring these questions can be a provocative vehicle through which to engage new law students in legal writing and analysis. The article focuses on an exercise that centers around a fictional “Duty to Rescue” statute modeled after European statutes of the same kind. The exercise is anchored by four images – three still photographs and one image that is part of a short documentary film – of people in tragic and near-death situations. The article explores ways to use the stories behind these images to engage law students in the question of whether the photojournalists who took the images had violated the fictional Duty to Rescue statute, and concludes with a discussion of ideas on how the basic exercise can be modified ...
THE IMPACT OF NEW VENTURE DESIGN ON ENTREPRENEURIAL EXIT

In this research we examine how the selection and assembly of initial strategic resources (financial, human, and technological) impact the entrepreneurial exit strategy. Our results suggest that an IPO exit strategy is positively related to all three types of strategic resources, while a strategic sale exit strategy is positively related to financial resources or total initial investment, and a sale to an individual exit strategy is positively associated with percentage of ownership, a financial resource. Implications for research and practice are discussed.
Judging the Risk of Financial Instruments: Problems and Potential Remedies

Information that firms provide about financial instruments and derivatives should help investors judge risk. However, this paper reports that such information often is not effective for this purpose. Through a series of experiments, we demonstrate that the labels firms use to describe financial instruments and derivatives cause investors to assess economically equivalent instruments as different in terms of risk. We also show that loss‐only disclosures that companies use to describe their risks cause investors to assess the same level of risk for firms with differing underlying exposures. Moreover, we establish that loss‐only disclosures cause investors to make risk judgments that correspond to infrequently used risk‐management strategies. We test two possible remedies for these judgment problems. Our results show that additional information describing the underlying economic exposures of a financial instrument does not eliminate the labeling effects. However, we do find that providing investors with upsi...
A Top-down Approach to Stress-testing Banks

We propose a simple, parsimonious, and easily implementable method for stress-testing banks using a top-down approach that captures the heterogeneous impact of shocks to macroeconomic variables on banks’ capitalization. Our approach relies on a variable selection method to identify the macroeconomic drivers of banking variables as well as the balance sheet and income statement factors that are key in explaining bank heterogeneity in response to macroeconomic shocks. We perform a principal component analysis on the selected variables and show how the principal component factors can be used to make projections, conditional on exogenous paths of macroeconomic variables. We apply our approach, using alternative estimation strategies and assumptions, to the 2013 and 2014 stress tests of medium- and large-size U.S. banks mandated by the Dodd-Frank Act, and obtain stress projections for capitalization measures at the bank-by-bank and industry-wide levels. Our results suggest that accounting for bank heterogeneity yields expected capital shortfalls that can be over 30 percent larger than in the case where heterogeneity is ignored. Furthermore, we find that while capitalization of the U.S. banking industry has improved in recent years, under reasonable assumptions regarding growth in assets and loans, the stress scenarios continue to imply sizable deterioration in banks’ capital positions.
Tradeoffs in the Design of Health Plan Payment Systems: Fit, Power and Balance

In many markets, including the new U.S. Marketplaces, health insurance plans are paid by risk-adjusted capitation, sometimes combined with reinsurance and other payment mechanisms. This paper proposes a framework for evaluating the de facto insurer incentives embedded in these complex payment systems. We discuss fit, power and balance, each of which addresses a distinct market failure in health insurance. We implement empirical metrics of fit, power, and balance in a study of Marketplace payment systems. Using data similar to that used to develop the Marketplace risk adjustment scheme, we quantify tradeoffs among the three classes of incentives. We show that an essential tradeoff arises between the goals of limiting costs and limiting cream skimming because risk adjustment, which is aimed at discouraging cream-skimming, weakens cost control incentives in practice. A simple reinsurance system scores better on our measures of fit, power and balance than the risk adjustment scheme in use in the Marketplaces.
Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation

This paper identifies and evaluates rationales for team participation and for the effects of team composition on productivity using novel data from a garment plant that shifted from individual piece rate to group piece rate production over three years. The adoption of teams at the plant improved worker productivity by 14 percent on average. Productivity improvement was greatest for the earliest teams and diminished as more workers engaged in team production, providing support for the view that teams utilize collaborative skills, which are less valuable in individual production. High‐productivity workers tended to join teams first, despite a loss in earnings in many cases, suggesting nonpecuniary benefits associated with teamwork. Finally, more heterogeneous teams were more productive, with average ability held constant, which is consistent with explanations emphasizing mutual team learning and intrateam bargaining.
'Lone Wolf' Terrorism and the Classical Jihad: On the Contingencies of Violent Islamic Extremism

It is nearly impossible to describe Muslim expansionism in the centuries following the death of the Prophet Muhammad - broadly undertaken in service of the Islamic doctrine of jihad - as being somehow compatible with modern norms of international relations, including self-determination and noninterference in the affairs of other states. To detractors, this seems to suggest a certain tension in modern Muslim thought that jihadist movements have been able to exploit. Modern Muslim intellectuals, that is, are forced to somehow reconcile an expansionist past, which was not only tolerated by early jurists interpreting Islam’s sacred texts but indeed exhorted by them as a duty of the Muslim community, with modern realities, where the jihad as it was historically understood has become something of an embarrassment. In so doing, the argument runs, they leave themselves exposed to the “literalist” claims of the jihadists, who can call up such sources at will and demonstrate the true Islamicity of their actions relative to modernists who can only rely on abstract principles and vague apologies that sound suspiciously Western. The purpose of this paper is to explore the fallacy of this conclusion through the examination of “lone wolf” terrorism. This form of terrorism is quite relevant not only because of its inherent danger, but also because the methods of the lone wolf terrorist have been broadly accepted by a panoply of the most extreme Islamist organizations, very much including the so called Islamic State. I will show that even if early and medieval Muslim jurists hardly incorporated a worldview that rested on principles of mutual tolerance and respect toward other states and other religions, they nonetheless regarded the jihad as a fundamentally conservative doctrine, meant to preserve the Muslim state as it was and direct violence exclusively in external directions, in an organized and systematic attempt to expand what was known as the House of Islam into the universal Muslim state. The notion of lone wolf terrorism - individually directed and organized violence, executed beyond the meaningful control of the caliph - was entirely foreign. Moreover, it depends on deliberate violation of one of classical Islam's core concepts in international relations, that of respect for the terms of a covenant of security, or aman, when granted by a non-Muslim power to a Muslim or the reverse.
Convective Risk Flows in Commodity Futures Markets

We study the joint responses of commodity future prices and positions of various trader groups to changes of the CBOE Volatility Index (VIX) before and after the recent financial crisis. Financial traders reduced their net long positions during the crisis in response to market distress, whereas hedgers facilitated this by reducing their net short positions as prices fell. This "convective risk flow" induced by the greater distress of financial institutions led to a change in the allocation of risk with hedgers holding more risk than they did previously. The presence of such a risk flow confirms the market impact of financial traders conditional on trades they initiate.
I Don't Want to Play God—A Response to Professor Tremblay

In "Acting 'A Very Moral Type of God': Triage Among Poor Clients", an article in this Symposium issue, Professor Paul R. Tremblay argues for the need for triage in the selection of legal services cases and clients and suggests a formula for making those triage decisions. While many of Professor Tremblay's views are unassailable, there is a part of me that rejects absolutely his hierarchy of case selection. In this musing on Professor Tremblay's meditation, I attempt to sort out the basis for my strong reaction to some of his points. I join others who have rejected a system of triage, but my reaction also surely stems from my years of lawyering on behalf of those who lacked the funds to retain counsel.
Financial Development and Technology Diffusion

We examine the extent to which financial market development impacts the diffusion of 16 major technologies, looking across 17 countries, from 1870 to 2000. We find that greater depth in financial markets leads to faster technology diffusion for more capital-intensive technologies, but only in periods closer to the invention of the technology. In fact, we find no differential effect of financial depth on the diffusion of capital-intensive technologies in the late stages of diffusion or in late adopters. Our results are consistent with a view that local financial markets play a critical role in facilitating the process of experimentation that is required for the initial commercialization and diffusion of technologies.
Integrating Mindfulness Theory and Practice Into Trial Advocacy

The metaphor of trial as battle is deeply embedded in American culture. Not surprisingly, a take-no-prisoners approach is celebrated both in fiction and in fact. In the real world, however, the trial lawyer as warrior comes at a high price. In a profession beset with stress, early burnout and cynicism are common among trial lawyers. And, conversely, the few who seem to thrive in this environment often do so at some cost to themselves, their friends and family. Against this backdrop, integrating mindfulness theory and practice into the teaching of trial advocacy might seem a hopeless endeavor. Nevertheless, sponsored by a fellowship from the Center for Contemplative Mind in Society, I created a course that explores whether mindfulness theory and practice can help students realize their potential as effective advocates and make a career in trial work more humane and sustainable. This article explores my experience with this course.
What Did Punitive Damages Do? Why Misunderstanding the History of Punitive Damages Matters Today

In 2001 the Supreme Court, in Cooper Industries, Inc. v. Leatherman Tool Group, Inc. suggested that, although modern punitive damages punish, in earlier times they almost exclusively compensated for noneconomic damages that were ignored by a less progressive legal system. This article demonstrates that the historical foundation upon which the Supreme Court bases its argument is groundless. In the Eighteenth and Nineteenth Centuries punitive damages served a number of functions, but none of them were to provide the noneconomic damages identified by the court. Instead, as the article shows, the sort of injuries for which punitive damages were once demanded would still be uncompensated by contemporary doctrines of compensatory damages. This article uses the court's confused analysis in Cooper to demonstrate that the dichotomy upon which it relied - that, in the law of punitive damages, punishment and compensation are mutually exclusive categories - is neither historically accurate nor analytically necessary.
Short-term termination without deterring long-term investment: A theory of debt and buyouts $

Abstract The option to terminate a manager early minimizes investor losses if he is unskilled. However, it also deters a skilled manager from undertaking efficient long-term projects that risk low short-term earnings. This paper demonstrates how risky debt can overcome this tension. Leverage concentrates equityholders' stakes, inducing them to learn the cause of low earnings. If they result from investment (poor management), the firm is continued (liquidated). Therefore, unskilled managers are terminated and skilled managers invest without fear of termination. Unlike models of managerial discipline based on total payout, dividends are not a substitute for debt—they allow for termination upon non-payment, but at the expense of investment since they do not concentrate ownership and induce monitoring. Debt is dynamically consistent as the manager benefits from monitoring. In traditional theories, monitoring constrains the manager; here, it frees him to invest.
Form Ever Follows Function: Using Technology to Improve Feedback on Student Writing in Law School

TITLE: Form Ever Follows Function: Using Technology to Improve Feedback on Student Writing in Law School AUTHOR: Daniel L. Barnett, Associate Professor of Legal Reasoning, Research and Writing, Boston College Law School ABSTRACT: Critiquing student writing is an important responsibility of many law professors. While the focus of a teacher’s critique should be on the substance of the feedback, teachers should also consider the form of the critique to ensure that they are providing the necessary guidance to students effectively and efficiently. When choosing the critique format, teachers have a variety of options, including several electronic techniques. Unfortunately, many teachers have not considered the use of technology to comment on student writing. However, advances in technology coupled with the technological savvy and comfort level of today’s student, may eventually dictate that all law teachers use some kind of electronic feedback when commenting on their students’ papers. This article is designed to encourage law professors to consider the use of technology to comment on student assignments by demonstrating that an electronic format could help many teachers be more proficient when critiquing their students’ writing. To help teachers determine the best critique format for their classes, the article provides a comparison of the different commenting methods and explores the considerations teachers should use when choosing the form of feedback. The article closes with a step-by-step guide to the current technology for providing comments on student writing electronically. Daniel L. Barnett © 2007 1 of 55 Form Ever Follows Function: Using Technology to Improve Feedback on Student Writing in Law School
Plagiarism, Kinship and Slavery

In conversation with Marilyn Strathern’s work on kinship and especially on metaphors of intellectual and reproductive creativity, this paper provides an analysis of plagiarism not as a violation of intellectual property but of the kinship relationships between author, work, and readers. It also analyzes the role of figures of kidnapped slaves and children in the genealogy of the modern concept of plagiarism.
The Impact of Industry Classifications on Financial Research

Using approximately 10,000 firms jointly covered by Compustat and CRSP from 1974–1993, we find substantial differences in the SIC codes designated by the two databases. More than 36 percent of the classifications disagree at the two-digit level and nearly 80 percent disagree at the four-digit level. We examine the impact of these differences upon financial research in several ways. First, we show that the classification of utilities, financial firms, and conglomerate acquisitions are affected by the choice of CRSP vs. Compustat SIC codes. Second, we show that industry classification matters in financial research by illustrating that size- and industry-matched comparisons are more powerful than pure size matches. Third, we test the specification and power of Compustat vs. CRSP classifications by simulating a typical financial experiment in which sample firms are matched to control firms by industry. We find that: i) Compustat matched samples are more powerful than CRSP matched samples in detecting abnormal performance; ii) nonparametric tests outperform parametric tests; and iii) four-digit SIC code matches are more powerful than two-digit SIC code matches. These results are robust to the inclusion or exclusion of extreme values, and hold for both NYSE/AMEX and Nasdaq firms.
Living Together Unmarried in the United States: Demographic Perspectives and Implications for Family Policy

This paper synthesizes research on the demographic correlates and consequences of unmarried, heterosexual cohabitation in the United States. First, we place cohabitation in the context of recent demographic trends in union formation and dissolution. Second, we consider the implications of cohabitation for child wellbeing. Third, we review population subgroup variation in the role of cohabitation in family patterns, focusing on social class and race and ethnicity. Finally, we discuss how and why unmarried cohabitation is implicated in recent dialogues about family policy.
An integrated view of tests of rationality, market efficiency and the short-run neutrality of monetary policy

Abstract This paper analyzes an important class of models in which expectations play an important role. Topics included in the analysis are tests of: (1) rationality of forecasts in either market or survey data, (2) capital market efficiency, (3) the short-run neutrality of monetary policy and, (4) Granger causality in macroeconometric models. The common elements of these tests are highlighted. In particular, cross-equation tests for rationality or the short-run neutrality of money are shown to be equivalent to more common regression tests in the literature. These results demonstrate that the exact specification of the relevant information set used in rational forecasts is not necessary for the cross-equation tests to have desirable asymptotic properties. Also discussed are the conditions for identification of coefficients and testability of hypotheses.
U.S. MONETARY POLICY'S IMPACT ON LATIN AMERICA'S STRUCTURE OF PRODUCTION (1960-2010)

This paper examines the effects of U.S. monetary policy on Latin America's production structure before two economic crises, specifically the effects of monetary policy on the real economy at the industrial level. Changes in the federal funds rate produce uneven effects on output trends across sectors and industries that are more capital-intensive and involved in relatively long-term projects are more sensitive to changes in the federal funds rate. Periods of loose monetary policy result in resource misallocation that is costly to correct during a bust if investment is irreversible, with a particular pattern of economic distortion during an unsustainable boom
Popular Attitudes towards Markets and Democracy: Russia and United States Compared 25 Years Later

Abstract We repeat a survey we did in the waning days of the Soviet Union (Shiller, Boycko and Korobov, AER 1991) comparing attitudes towards free markets between Moscow and New York. Additional survey questions, from Gibson Duch and Tedin (J. Politics 1992) are added to compare attitudes towards democracy. Two comparisons are made: between countries, and through time, to explore the existence of international differences in allegiance to democratic free-market institutions, and the stability of these differences.
The Interaction between Internal Control Assessment and Substantive Testing in Audits for Fraud

We examine the interaction between internal control assessments and substantive testing in a model of fraud detection. The purpose of our study is to examine a two-stage model of the auditor-manager interaction in which the auditor assesses the “likelihood” or possibility of fraud in the first stage and conducts substantive tests in the second stage. We examine the allocation of audit resources across these two distinct facets of the audit. We find that, regardless of the auditor's allocation, the probability of undetected fraud remains the same, but the allocation of some audit resources to internal control assessment may provide cost savings for the auditor.
The Future of Systemic Disparate Treatment Law

At the same time that it becomes increasingly clear that organizational change is crucial to reducing workplace discrimination, longstanding theories of systemic discrimination are under attack. This Article exposes the threat posed to the mainstay of systemic theories – systemic disparate treatment theory – under which plaintiffs frequently use statistics (along with other evidence) to establish that discrimination is widespread within the defendant organization. The threat to private enforcement of Title VII against systemic disparate treatment is starkly evident in the current battle over class certification, but the threat goes much deeper than whether private plaintiffs will be able to obtain class certification in employment discrimination cases – it goes to the substance of systemic disparate treatment law. This Article uncovers the “policy-required” view of entity responsibility that underlies the dissenting opinion in the Ninth Circuit class certification decision in Dukes v. Wal-Mart and exposes the implications of that view for the future of systemic disparate treatment law. It also shows how an individualistic model of organizational wrongdoing more broadly has led to under-theorizing, even mis-theorizing, of entity responsibility for systemic disparate treatment. Drawing on developments in other areas of organizational wrongdoing, the Article advances a “context” model as theoretical grounding for existing systemic disparate treatment law. A context model emphasizes the role of organizational context in producing wrongdoing. Viewed through a context lens, systemic disparate treatment law imposes direct liability on employers for regular, widespread disparate treatment as well as for discriminatory policies because in those circumstances the employer is likely to be producing or to have produced disparate treatment within the organization.
The NCAA and the Rule of Reason

This brief essay considers the use of antitrust’s rule of reason in assessing challenges to rule-making by the NCAA. In particular, it looks at the O’Bannon case, which involved challenges to NCAA rules that limit the compensation of student athletes under the NCAA rubric that protects the “amateur” status of collegiate athletes. Within that rubric, the Ninth Circuit got the right answer. That outcome leads to a broader question, however: Should the NCAA’s long held goal, frequently supported by the courts, of preserving athletic amateurism be jettisoned? Given the dual role that colleges play, that is a complex question, which raises issues that are not only commercial but also educational. More important for the purpose at hand, is whether jettisoning amateurism in NCAA athletics is a suitable task for an antitrust tribunal. This paper argues that antitrust law is not an appropriate vehicle for addressing that issue. This does not mean that antitrust has no role to play in policing athlete compensation in NCAA schools. But it does suggest that that role be limited to addressing restraints on trade that occur within the rubric of amateur status—at least until such time as a more competent body decides whether amateurism in collegiate athletics is worth preserving.
Secondary terms in asymptotics for the number of zeros of quadratic forms over number fields

Let $Q$ be a nondegenerate quadratic form on a vector space $V$ of even dimension $n$ over a number field $F$. Via the circle method or automorphic methods one can give good estimates for smoothed sums over the number of zeros of the quadratic form whose coordinates are of size at most $X$ (properly interpreted). For example, when $F=\mathbb{Q}$ and $\dim V>4$ Heath-Brown has given an asymptotic of the form \begin{align} \label{HB:esti} c_1X^{n-2}+O_{Q,\varepsilon,f}(X^{n/2+\varepsilon}) \end{align} for any $\varepsilon>0$. Here $c_1 \in \mathbb{C}$ and $f \in \mathcal{S}(V(\mathbb{R}))$ is a smoothing function. We refine Heath-Brown's work to give an asymptotic of the form $$ c_1X^{n-2}+c_2X^{n/2}+O_{Q,\varepsilon,f}(X^{n/2+\varepsilon-1}) $$ over any number field. Here $c_2 \in \mathbb{C}$. Interestingly the secondary term $c_2$ is the sum of a rapidly decreasing function on $V(\mathbb{R})$ over the zeros of $Q^{\vee}$, the form whose matrix is inverse to the matrix of $Q$. We also prove analogous results in the boundary case $n=4$, generalizing and refining Heath-Brown's work in the case $F=\mathbb{Q}$.