cssi/SciSciGPT-SciSciNet huggingface dataset:
Perspective Matters: Sharing of Crisis Information in Social Media

In this paper, we examined information sharing behavior in social media when one was taking the perspective of self versus other. We found that imagining self in a disaster center, Fukushima, Japan, increased the likelihood of sharing crisis information relative to imagining another person, John, in the same place. People's intention to share crisis information by default, without being asked to take any perspective, paralleled the intention to share when taking another person's perspective. Moreover, when the information was associated with negative feelings, such as worry or fear, it was more likely to be shared; when the information was perceived confusing or uninteresting, it was less likely to be shared.
The Role of Accounting Conservatism in the Equity Market: Evidence from Seasoned Equity Offerings

ABSTRACT : Using seasoned equity offerings (SEOs) from 1989 to 2008, we examine the role of accounting conservatism in the equity market. We find that issuers with a greater degree of conservatism experience fewer negative market reactions to SEO announcements. We further show that an important mechanism through which conservatism affects SEO announcement returns is by mitigating the negative impact of information asymmetry. Additional analyses suggest that our results are not driven by the effects of other forms of corporate governance. We also find evidence that conservative issuers continue to use conservative accounting after the equity offerings. Taken together, our findings are consistent with the argument that accounting conservatism reduces financing costs in SEOs. Data Availability: Data used in this study are available from public sources identified in the study.
Can We Stay Ahead of the Obsolescence Curve? On Inflection Points, Proactive Preemption, and the Future of Supply Chain Management

Great companies—like great products and great nations—have always endured a four-stage life cycle: emergence, growth, maturity, and decline. Faster clockspeeds—enabled by compressed technology cycles and accelerated by new knowledge-sharing routines such as crowdsourcing—are shrinking life cycles. What does this mean? Entities of all kinds now find themselves in a constant race against obsolescence. We thus ask a vital question,”Can we (as a discipline) stay ahead of the obsolescence curve?” Technological and sociological inflection points promise to change the rules of engagement. For instance, 3D printing, Big Data, and drones promise to change management practice. Budget deficits, poor skill improvement, and MOOCs promise to change academe. We discuss adaptation challenges and proactive preemption as preludes to presenting various visions of the future of supply chain management.
Lochner and Constitutional Continuity

Lochner v. New York and the liberty of contract doctrine enunciated in that case have been denounced by legal scholars from all points of the political spectrum for decades. So perhaps the most surprising aspect of the history of the liberty of contract doctrine is that modern Fourteenth Amendment jurisprudence is at least as much a product of the Lochner line of cases as of the views of their Progressive opponents. Progressive critics of Lochner certainly emerged victorious on one very important issue — the Supreme Court no longer engages in serious review of economic regulations under the Due Process Clause. But despite the calumny heaped on the due process liberty of contract decisions and the Supreme Court Justices who wrote them, modern constitutional jurisprudence implicitly (and sometimes explicitly) draws a great deal from pre-New Deal due process decisions rejecting novel assertions of government power. This article is based on material published in David E. Bernstein, Rehabilitating Lochner: Defending Individual Rights against Progressive Reform (University of Chicago Press 2011).
Modeling Selection Bias in Studies of Sanctions Efficacy

Sanctions rarely work but they continue to be used frequently by policymakers. I argue that previous studies of sanctions ignore the problem of strategic censoring by focusing only on cases of observed sanctions. In this paper, I develop a unified model of sanction imposition and success and test it using a simultaneous equation censored probit model. This selection-corrected sanction model finds that the process by which sanctions are imposed is linked to the process by which some succeed while others fail, and that the unmeasured factors that lead to sanction imposition are negatively related to their success.
Liquidity risk management and credit supply in the financial crisis

Abstract Liquidity dried up during the financial crisis of 2007–2009. Banks that relied more heavily on core deposit and equity capital financing, which are stable sources of financing, continued to lend relative to other banks. Banks that held more illiquid assets on their balance sheets, in contrast, increased asset liquidity and reduced lending. Off-balance sheet liquidity risk materialized on the balance sheet and constrained new credit origination as increased takedown demand displaced lending capacity. We conclude that efforts to manage the liquidity crisis by banks led to a decline in credit supply.
Accounting Measurement Basis, Market Mispricing, and Firm Investment Efficiency

In this paper, we investigate how the accounting measurement basis affects the capital market pricing of a firm's shares, which, in turn, affects the efficiency of the firm's investment decisions. We distinguish two broad bases for accounting measurements: input-based and output-based accounting. We argue that the structural difference in the two measurement bases leads to a systematic difference in the efficiency of the investment decisions. In particular, we show that an output-based measure has a natural advantage in aligning investment incentives because of its comprehensiveness. The (first-)best investment is achieved when the output-based measure is noiseless and manipulation free. In addition, under an output-based measure, more accounting noise/manipulation always leads to more inefficient investment choices. Therefore, if an output-based accounting measure is highly noisy and easy to manipulate in practice, the induced investment efficiency can be quite low. On the other hand, an input-based accounting measure, while not as comprehensive, may induce more efficient investment decisions than an output-based measure if some noise is unavoidable in either measure. The reason is twofold. First, input-based measures may be associated with less noise and limited manipulation in practice. Second, and more importantly, we show that under
Does the Timing of Auditor Changes Affect Audit Quality? Evidence From the Initial Year of the Audit Engagement:

We focus on the first year of the auditor–client relationship and investigate whether audit quality varies with the timing of the new auditor’s appointment. We find that audit quality is not lower ...
Computational Methods for Oblivious Equilibrium

Oblivious equilibrium is a new solution concept for approximating Markov-perfect equilibrium in dynamic models of imperfect competition among heterogeneous firms. In this paper, we present algorithms for computing oblivious equilibrium and for bounding approximation error. We report results from computational case studies that serve to assess both efficiency of the algorithms and accuracy of oblivious equilibrium as an approximation to Markov-perfect equilibrium. We also extend the definition of oblivious equilibrium, originally proposed for models with only firm-specific idiosyncratic random shocks, and our algorithms to accommodate models with industry-wide aggregate shocks. Our results suggest that, by using oblivious equilibrium to approximate Markov-perfect equilibrium, it is possible to greatly increase the set of dynamic models of imperfect competition that can be analyzed computationally.
Job-Seeker Reactions to Selection Process Information in Job Ads

Using a policy-capturing methodology, the current study examines if and to what extent individuals utilize selection process information contained in job ads in making evaluations of organizational attractiveness and decisions to apply. Results show both indirect and direct evidence that individuals do attend to and use these cues when presented in job ads in making initial job-pursuit evaluations. Additionally, the results are consistent with a model derived from the organizational justice literature suggesting that perceptions of selection procedures' measurement accuracy may drive the observed effects. Specifically, ratings of organizational attractiveness and intentions to apply were significantly associated with perceptions of a given selection method's assessment accuracy for those ads that specified its use. Policy-capturing results also show direct evidence that participants attend to and rely on selection process information in job ads to make job-pursuit evaluations, and that perceptions of measurement accuracy are related to the degree to which, and how those cues are utilized. Research and applied implications are discussed.
Expanding the Empirical Study of Access to Justice

Introduction 101 I. The Contribution of Randomized Controlled Trials in Legal Contexts 105 II. The Need for Theory I: What Is “Effectiveness?” 111 III. The Need for Theory II: Supply Side Access to Justice 114 IV. The Need for Theory III: Demand Side Access to Justice ......... 117 Conclusion 119
Should visitation denial affect the obligation to pay support

To understand the issues involved, leading lawyers and economists examine various facets of the child support system from a law and economics perspective. They consider the incentives faced by both custodial and non-custodial parents, and search for policy actions that are more incentive-compatible for all participants. The assumptions underlying current child support guidelines are discussed, as are the ways in which child support payments affect family structure, teenage delinquency and income disparities between parents.
Mental Accounting and False Reference Points in Real Estate Investment Decision Making

This study examines a number of behavioral finance issues as they relate to real estate investments. We find a statistically significant degree of mental accounting at all points throughout the disposition effect curve when holding a real estate investment in isolation versus holding the asset as part of a mixed-asset portfolio. We also identify four distinct disposition curve shapes beyond the traditional “S-shaped” curve, where investors are more willing to sell an asset that is in the gains domain. Furthermore, we conclude that an investor's willingness to sell jumps by the greatest amount when going from zero return into profitable territory. Finally, this false reference point does take into consideration transaction costs.
Punishment Theory: Moral or Political?

Is the justification of punishment a moral question? Much contemporary writing on punishment, whether by philosophers or legal scholars, treats it as such. Theories of punishment are taken to be moral theories, and the problem of justifying punishment is presented as a key battle-ground in the war between utilitarian and deontological ethics. The question of how and when the state should punish is reduced to the question of how and when particular persons should punish other persons. This question in turn is treated as just a special case of the more general question whether persons are morally obliged to govern their actions by the aim of maximizing human welfare or by rules of fair treatment. But surely this is an odd way to think about punishment. Punishment is not a behavior, but an institution. It is part of a system that involves conduct norms, an authoritative procedure for generating these norms, an authoritative procedure for decisions to impose sanctions, and some measure of practical power over persons or resources. To punish someone is not just to harm them, nor even just to harm them because of something they have done. It is to stake a claim to a certain kind of institutional authority, even when the institution is only the family. To punish someone is to assert a right and accept an obligation to punish anyone similarly circumstanced and behaved, even if that other person be only a sibling. Punishment is never the isolated act of an individual: to punish is to act as an officer or agent participating in a system for enforcing an authoritatively promulgated norm. Because punishment is part of a system of institutional authority, it is not amenable to a simple moral
The Mapmaker’s Dilemma in Evaluating High-End Inequality

The last thirty years have witnessed rising income and wealth concentration among the top 0.1 percent of the population, leading to intense political debate regarding how, if at all, policymakers should respond. Often, this debate emphasizes the tools of public economics, and in particular optimal income taxation. However, while these tools can help us in evaluating the issues raised by high-end inequality, their extreme reductionism – which, in other settings, often offers significant analytic payoffs – here proves to have serious drawbacks. This paper addresses what we do and don’t learn from the optimal income tax literature regarding high-end inequality, and what other inputs might be needed to help one evaluate the relevant issues.
Do lack of transparency and enforcement undermine international risk-sharing?

This paper studies the extent to which poor institutions compromise risk-sharing. We model a multilateral organization as a social contract that provides insurance to members. Countries privately observe the realization of a performance variable with a verification cost that differs across countries, reflecting the “transparency” of institutions. When the level of transparency is exogenous, the optimal contract provides complete expected risk sharing across countries and states. Poor transparency and enforcement reduce consumption and result in insurance rationing. When a country can increase transparency endogenously, this generates an externality and moral hazard. We first characterize the outcome when the multilateral agency can influence members’ institutions by choosing the countries’ level of effort. Next we derive a tax/subsidy scheme that can induce countries to choose the socially optimal level.
Housing productivity and the social cost of land-use restrictions

Abstract We use metro-level variation in land and structural input prices to test and estimate a housing cost function with differences in local housing productivity. Both OLS and IV estimates imply that stringent regulatory and geographic restrictions substantially increase housing prices relative to land and construction input costs. The typical cost share of land is one-third, and substitution between inputs is inelastic. A disaggregated analysis of regulations finds state-level restrictions are costlier than local ones and provides a Regulatory Cost Index (RCI). Housing productivity falls with city population. Typical land-use restrictions impose costs that appear to exceed quality-of-life benefits, reducing welfare on net.
The effects of private equity and venture capital on sales and employment growth in small and medium-sized businesses

We study the effects private equity (PE) and venture capital (VC) financing have on small and mid-sized single entity business establishments from 1995 to 2009. We focus on single entity establishments to cleanly examine the impact of PE and VC financing on establishments’ organic growth. This study reveals that PE and VC financing have positive impacts on single entity business establishments’ net sales and employment growth. The impact of PE financing on establishments’ growth is slower and smaller than VC financing. However, we find that the benefit of PE financing lasts longer than VC financing. We also find that ethnic minority, female, and foreign business owners are less likely to receive PE and VC financing. Finally, we find evidence that although establishments with government contracts are more likely to receive PE and VC financing, those contracts fail to produce marginal post-funding growth and employment benefits.
Rethinking the Business Plan Paradigm: Bridging the Gap Between Plan and Plan Execution*

A new business planning paradigm is inherent in the "total quality management'' school of thought. This new approach has several advantages. Principal among them is that it helps bridge the gap between plan creation and plan execution. Most business planning resources for small business have not yet recognized the new business planning paradigm. This paper compares the traditional business plan paradigm to the new. /1 describes three shortcomings of the traditional approach and five strengths of the new approach. !1 explains how the strengths of the new approach can be used to overcome the shortcomings of the traditional approach and yield stronger business plans. Simple examples illustrate how to create and execute business plans using New-Paradigm business planning.
A Comity of Errors: The Rise, Fall, and Return of International Comity in Transnational Discovery

No feature of U.S. law has rankled foreign nations more than the supposed “legal imperialism” of discovery requests for information located abroad to be used in U.S. litigation or investigations. China, France, Germany, and Switzerland have threatened the stability of bilateral relations with the United States due to overbroad transnational discovery requests. For three decades, when faced with concerns of international comity in the discovery context, U.S. courts ruled overwhelmingly in favor of discovery through the Federal Rules, rendering international comity a dead concept. Recent case law, however, shows that this paradigm is coming to an end. In a trilogy of cases decided, respectively, by the United States Supreme Court (Daimler), the Second Circuit (Gucci), and the New York State Court of Appeals (Motorola), each court rejected attempts by plaintiffs to subject foreign entities to jurisdiction in the United States or otherwise impose on them overbroad duties, including those in conflict with foreign laws. Prominently relying on “international comity,” each decision limited the reach of U.S. courts and emphasized the need for harmony in the international legal system. These three cases are groundbreaking and should lead to changes in U.S. transnational discovery. The Article analyzes this recent revival of international comity. First, it explores the history of international comity and its interaction with broad U.S. discovery rules. Second, it briefly reviews the Supreme Court case Aerospatiale, which dealt a blow to international comity. Third, this Article analyzes how DOI: http://dx.doi.org/10.15779/Z384K2P * Associate at Cleary Gottlieb Steen & Hamilton in New York. J.D. 2013, Harvard Law School; B.A. 2010, University of Virginia. I would like to thank Carmine Boccuzzi for his mentorship and support for this article. I am also grateful to Sophie Kaiser, Corey Banks, Hilary Wong, Rusty Feldman, Adam Olin, Katherine Denby, Eugene Karlik, James Blakemore, Gregory Wolfe, Joseph Brothers, and the members of BJIL for helpful comments and conversations. The views expressed herein are my own and do not necessarily reflect the views of Cleary Gottlieb. Published by Berkeley Law Scholarship Repository, 2016 158 BERKELEY JOURNAL OF INTERNATIONAL LAW [Vol. 34:1 Daimler, Gucci, and Motorola relied on comity to reach their holdings and argues that international comity has been revived in the context of discovery. Finally, this Article takes a normative approach and argues that U.S. courts should engage in a qualitative limitation of the kinds of U.S. interests that are significant in the transnational discovery context.
Averting environmental justice claims? The role of environmental management systems

Today, more regulatory provisions are in place for protecting low-income minority populations who shoulder a disproportionate amount of environmental risk. Recognized as communities of “environmental justice,” industrial facilities located within these areas bear greater legal liabilities for and societal scrutiny of their environmental impacts. The authors offer compelling evidence that, in an effort to avoid regulatory and societal claims that they are disproportionately harming minority and ethnic populations, businesses operating inside environmental justice communities tend to adopt an environmental management system (EMS). The article probes whether industries actually improve the environment as a consequence of EMS adoption or whether such systems are simply used to avoid greater governmental scrutiny without necessarily reducing overall environmental risks.
Compensating for Executive Compensation: The Case for Gatekeeper Incentive Pay

[E]xecutive compensation abruptly shifted in the United States during the 1990s, moving from a cash-based system to an equity-based system. More importantly, this shift was not accompanied by any compensating change in corporate governance to control the predictably perverse incentives that reliance on stock options can create. 1
Bounding the relative profitability of price discrimination

Abstract We derive bounds on the ratio of a monopolist's profit from third-degree price discrimination to that from uniform pricing. If the monopolist serves N independent markets, demand is continuous, and the cost function is superadditive, then the profit ratio is bounded by N. A linear-demand example is provided coming arbitrarily close to this bound. We provide examples showing the profit ratio can be unboundedly large when marginal cost is decreasing, demand is discontinuous, or fixed cost is positive. If the monopolist has access to certain demand-rationing strategies under uniform pricing, we can bound the profit ratio even for discontinuous demand functions and multiproduct cost functions.
LOOKING AHEAD: OPPORTUNITIES AND CHALLENGES FOR ENTREPRENEURSHIP AND SMALL BUSINESS OWNERS

Elections, especially those where the incumbent is not running, force us to evaluate where we are and to look to the future for where we would like to be. In a few weeks, Americans will elect their next President. Voters will decide who can best lead the coun­ try at this important time in our history. Small business owners have a chance to do the same, as they can use this event to assess the impact of proposed policies on various opportunities and chal­ lenges facing their businesses. Many of the opportunities and challenges facing small busi­ nesses will be significantly impacted by election proposals, and the two candidates have expressed divergent policy views. This Article outlines the most important issues and opportunities facing existing small business owners and entrepreneurs in this election year. I will leave specific policy solutions to others. They will almost certainly be addressed by the next administration. Small businesses playa key role in the United States economy. There are many reasons why small firms matter in terms of policy and for our nation's economic health. Small businesses-particu­ larly newer ones in the first two years of operation-provide much of the net new job growth in our economy.l Between 2004 and 2005, nearly eighty-three percent of all net new jobs in our economy stemmed from businesses with fewer than twenty employees.2
Violence and the U.S. Prohibitions of Drugs and Alcohol

This paper examines the relation between prohibitions and violence, using the historical behavior of the homicide rate in the United States. The results document that increases in enforcement of drug and alcohol prohibition have been associated with increases in the homicide rate, and auxiliary evidence suggests this positive correlation reflects a causal effect of prohibition enforcement on homicide. Controlling for other potential determinants of the homicide rate does not alter the conclusion that drug and alcohol prohibition have substantially raised the homicide rate in the U.S. over much of the past 100 years.
"On One Foot": Book Review of In the Name of Justice

Rarely is one book a lesson in all of criminal law. In the Name of Justice, edited by Timothy Lynch, is that book. The book contains a collection of essays on Professor Henry M. Hart’s classic article, “The Aims of the Criminal Law.” While our times have changed since the article was written in 1958, our legal challenges remain remarkably the same. This Book Review explores the modern-day implications of Hart’s article and its teachings for today.
Introduction to Review of Financial Studies Conference on Market Frictions and Behavioral Finance

A significant fraction of research by financial economists over the last few decades has attempted to understand various anomalous or puzzling empirical observations taken from financial markets. These range from the equity premium puzzle at the aggregate level, to the small firm effect, to moment in returns, and to post-event abnormal returns at the level of individual stock and portfolio returns. In each case these empirical puzzles are identified by finding portfolios with average returns that are high relative to their risk as measured by the covariance of the returns with the market portfolio, as in the CAPM, or with aggregate consumption, as in the consumption-based CAPM. If the assumptions about market structure and the behavior of agents justifying the models are correct, then return observations imply that agents should trade to take advantage of the observed patterns in returns. There have been essentially three types of explanations put forward for why agents don't take advantage of the anomalies.
A Tale of Two Indices

Pricing options involves a volatility input. Since volatility is not directly observable and it also varies stochastically over time, volatility risk is a significant concern for most option traders. Not surprisingly, then, there has always been considerable interest in the CBOE9s VIX volatility index, although relatively little trading of derivatives based on it. The original VIX was a weighted average of Black-Scholes implied volatilities, which made it (in principle) a good estimator of future volatility, but hard to replicate with traded securities. The original VIX has been recently replaced by a new formula that is not model dependent. In this article, Carr and Wu review the old VIX (now called the VXO) and the new VIX and present a wide variety of results on their behavior. An interesting difference is that the new VIX, squared, is a good hedge for realized variance. This makes the new VIX a better underlier for volatility derivative contracts, which are now being launched into the marketplace by the CBOE. The article examines the performance of the two indices as forecasts of realized volatility, and shows how the VIX responds around an uncertainty diminishing information event, meetings of the Federal Open Market Committee. Carr and Wu also obtain interesting results on the market9s volatility risk premium from direct measurement of risk neutral volatility in the VIX.
The labor wedge: MRS vs. MPN

Abstract Do fluctuations of the labor wedge, defined as the gap between the firm's marginal product of labor (MPN) and the household's marginal rate of substitution (MRS), reflect fluctuations of the gap between the MPN and the real wage or fluctuations of the gap between the real wage and the MRS? For many countries and most forcefully for the United States, fluctuations of the labor wedge predominantly reflect fluctuations of the gap between the real wage and the MRS. As a result, business cycle theories of the labor wedge should primarily focus on improving the household side of the labor market. Explanations of the labor wedge based on departures of the representative firm's MPN from the real wage are rejected by the data because the labor share of income is not strongly procyclical.
Accepting the Relegation of Takings Claims to State Courts: The Federal Courts' Misguided Attempts to Avoid Preclusion under Williamson County

This article argues that the denial of federal jurisdiction to plaintiffs in takings cases against state and local governments is not only consistent with Supreme Court precedent, but is also the more appropriate jurisdictional arrangement. The state procedures requirement of Williamson County Regional Planning Commission v. Hamilton Bank requires plaintiffs in taking cases first to adjudicate state inverse condemnation claims in state court before filing federal taking claims in federal court. Preclusion doctrines, however, bar relitigation in most cases, effectively removing federal court jurisdiction in taking cases. This article critiques several prominent judicial responses to this so-called "preclusion problem." The federal courts' attempts to avoid preclusion are often based on erroneous legal analyses, they do not effectively guarantee a federal forum in taking cases, and they have further confused the already-complex area of takings law. Given the difficulties with the federal courts' responses, this article ultimately asks whether the "preclusion problem" requires a solution and concludes that these unusually-local constitutional claims are more appropriately adjudicated in state courts.
Reflections on the Evolution of Operations Management

In this paper, I provide some observations on how the academic field of operations management has changed over the past 40 years. For this purpose, I have identified and classified the operations m...
The Disappointed Expectations Test and the Economic Loss Doctrine

The economic loss doctrine is a judicially created rule that determines whether contract or tort law applies when a defective product causes damage. The doctrine’s starting premise is that contract law governs if the defective product causes economic loss and tort law governs when the defective product causes property damage. A common refrain is that the doctrine was created to prevent contract law from drowning in a sea of tort. However, as the rule has developed, courts have continued to expand contract coverage at the expense of tort coverage. First, when the defective product damages only itself, the courts concluded that such property damage should be resolved under contract law, not tort law. Next, when the defective product damages the system of which it was a component part, the courts concluded that such property damage should also be resolved under contract law, not tort law. Recently, another rule has begun to receive judicial acceptance that further expands the coverage of contract law at the expense of tort law. The rule is called the “disappointed expectations” test or the “reasonably foreseeable” rule. It provides that property damage that was reasonably foreseeable at the time of contracting is recoverable only under contract law, not tort law. The purpose of this Article is to examine the disappointed expectations rule and determine whether it is a positive addition to the legal landscape of the economic loss doctrine.
Free Speech on Tuesdays

The philosopher John Searle famously observed that there is “no remark without remarkableness,” by which he meant that even simple assertions presuppose that there is some reason to make the assertion, typically that what is being asserted is in some way special or unexpected. Similarly, we do not normally specify rights unless there is something special about the specified rights. We would not, for example, assert that (or protect specially) a right to free speech on Tuesdays unless there was something distinguishing free speech on Tuesdays from free speech on any other day of the week. And if we take this trivial observation at one remove, we can see, non-trivially, that to specify a right presupposes that there is something special about the right compared to another right within which it may be encompassed. With respect to free speech, for example, specifying a right to free speech presupposes something special about the protected speech compared to the speech that might be included within a more general right to liberty. And thus free speech, although a salient example, is but an example of a larger account of nested rights – the way in which rights might be included within other rights, and the circumstances under which the included rights are or are not explicitly specified.
Beyond a Snapshot: Preventing Human Trafficking in the Global Economy

Current legal responses to the problem of human trafficking often reflect a deep reluctance to address the socioeconomic root causes of the problem. Because they approach trafficking as an act (or series of acts) of violence, most responses focus predominantly on prosecuting traffickers, and to a lesser extent, protecting trafficked persons. While such approaches might account for the consequences of trafficking, they tend to overlook the broader socioeconomic reality that drives trafficking in human beings. Against this backdrop, this article seeks to reframe trafficking as a migratory response to current globalizing socioeconomic trends. It argues that, to be effective, counter-trafficking strategies must target the underlying conditions that impel people to accept dangerous labor migration assignments. The article recommends that existing counter-trafficking strategies be assessed with a view to assessing their potential for long-term effectiveness. It also advocates strategic use of the nondiscrimination principle to promote basic economic, social, and cultural rights, the deprivation of which has sustained the trafficking phenomenon. Language: en
Property, Place, and Public Discourse

A Madisonian First Amendment contemplates opportunities for speakers and listeners to engage one another on issues of public concern. The First Amendment, which protects rights to assemble and petition as well as to speak, contemplates that some such exchanges will occur in public places. Speakers have always sought out audiences - willing, undecided, and sometimes unwilling - in public places. But the architectures of public spaces are socio-fugal; they do not generally bring people together and so provide few opportunities for public discourse. The First Amendment doctrines of place, namely "public forum" and "time, place, and manner," are also socio-fugal. Facilitation of public discourse, speech that actually occurs in public places, is not their concern. As a result of this combination of spatial circumstances and doctrines, today we have very limited opportunities for public discourse. This paper is part of a symposium on the Rehnquist Court and free speech. The Rehnquist Court placed an indelible mark on public space. The principal critique advanced in this paper is that the Court made public discourse decidedly more difficult than it previously had been. Like prior Courts, the Rehnquist Court granted broad authority to officials to manage public places as if they were nothing more than mere parcels of property. But more than this, the Court diminished the expressive "easement" in places like streets and sidewalks; encouraged the tactical use of place and expressive zoning; refused to recognize new "quintessential" public forums; and recognized a right to privacy in public places. Listeners, who are already capable of filtering out most speech they do not wish to hear in private, are now shielded from dissenting views and other speech in most public places as well. Public discourse, which has a long and venerable history in this country, cannot be sustained under these circumstances. If it is to preserved, there must be substantial changes, both to our fundamental conception of place and to the constitutional doctrines of place. Applying insights and approaches from two previous works on speech and spatiality, this paper proposes that place be refashioned in a manner that recognizes its importance to public discourse. This means that place must be separated conceptually from property principles and from the abstraction of the "public forum." The paper describes an independent conception of place, one drawn from studies of place in disciplines like anthropology and human geography. It explains why place as conceptualized should be preferred to conceptions of property and forum, and what a spatial analysis based upon this new conception of place might look like. Finally, after establishing place as a distinct concept, the paper argues in favor of not only conceptually but also mechanically separating place from things like time and manner, and for subjecting most spatial restrictions to true heightened scrutiny.
The determinants of effective corporate lobbying

In this paper we study whether capital markets view lobbying activities to be value enhancing by examining the effects of lobbying on excess returns and stock return volatility. We undertake our analysis cautious that there are significant differences between the characteristics of lobbying and non-lobbying firms. Specifically, firm size, free cash flows, and R&D intensity are critically important factors that may drive results of our and other lobbying research. We show that once properly accounting for the effects of firm size, a managerial agency problem in lobbying is apparent. Initially we find that shareholders experience either no discernible or else negative excess returns in response to firm lobbing efforts. Results are even stronger when corrections are made for endogeneity issues. Further, evidence presented suggests that lobbying firms have higher volatility of stock returns, and we show that volatility is greater for firms that lobby more intensely. However, for R&D-intensive firms, and for those firms with low agency problems, lobbying does contribute to the long-term benefit of shareholders. Overall, results suggest that lobbying leads to positive excess returns when agency problems are low and R&D is high, and leads to negative excess returns otherwise.
100 Horsemen and the empty city: A game theoretic examination of deception in Chinese military legend

We present game theoretic models of two of the most famous military bluffs from history. These include the legend of Li Guang and his 100 horsemen (144 BC), and the legend of Zhuge Liang and the Empty City (228 AD). In both legends, the military commander faces a much stronger opposing army, but instead of ordering his men to retreat, he orders them to act in a manner consistent with baiting the enemy into an ambush. The stronger opposing army, uncertain whether it is facing a weak opponent or an ambush, then decides to flee and avoid battle. Military scholars refer to both stories to illustrate the importance of deception in warfare, often highlighting the creativity of the generals’ strategies. We model both situations as signaling games in which the opponent is uncertain whether the general is weak (i.e. has few soldiers) or strong (i.e. has a larger army waiting to ambush his opponent if they engage in combat). We then derive the unique Perfect Bayesian Equilibrium of the games. When the probability o...
Late for a very important date: financial reporting and audit implications of late 10-K filings

Delays in financial reports often reflect issues related to period-end accounting and audit processes. We investigate the impact of filing delays in connection with auditor characteristics on the quality of financial statements in a sample of firms that filed Form 10-K after the statutory due date. We find that late filing firms are associated with lower financial reporting quality compared to timely filing firms matched by propensity scores, where financial reporting quality is measured by the absolute value of performance-matched discretionary accruals and the probability of a late filing being restated in subsequent periods. Furthermore, we demonstrate that the adverse consequences of late filings can be largely mitigated by having a Big 4 auditor. The differential audit quality stems primarily from Big 4 auditors in large offices and is more pronounced when an auditor may need to draw on additional resources in a limited period.
Price-earnings changes during US presidential election cycles: voter uncertainty and other determinants

Using electronic-markets data, this paper investigates partial determinants of change in Graham’s price-earnings ratios (P/E) during US presidential election cycles. We document evidence over six elections, that as the probable winner of the election becomes clearer, markets surprisingly respond with decreases in P/E ratios. We consider that our results are consistent with rational markets reacting to presidential campaigns focused on influencing biased, sociotropic voters. These results should be of great interest to researchers concerned with market reaction to election cycles, public policy, and the overall role of election uncertainty in financial markets.
Offshore Financial Centres in the Caribbean: Prospects in a New Environment

This paper reviews the development of offshore financial activities in the English-speaking Caribbean islands and takes stock of the size of these sectors today, and analyses the future prospects. A number of Caribbean jurisdictions are market leaders in the offshore products they offer and have identified the growth of this sector as a development strategy. Established centres in the Bahamas, Barbados and Cayman Islands have managed to become global players and have generated sizeable gains in employment and income. However, in view of the heightened concerns by the international community about money laundering and more recently, terrorist financing, the costs of compliance and risks to countries of having or establishing offshore sectors have risen considerably. This is particularly relevant to the newer entrants, with significant regulatory differences from international standards. The paper assesses the risks, benefits and costs of compliance with international best practices for established and newer offshore jurisdictions. The paper asks the questions whether offshore jurisdictions constitute a sustainable development strategy and concludes that for nascent jurisdictions, the gains are very small.
The Interplay between Insurers’ Financial and Asset Risks during the Crisis of 2007–2009

In this study we compare the interplay between capital and asset risks before and during the 2007–2009 financial crisis for the U.S. life and health insurance industries partitioned into segments by product specialisation, size and governance. The results show substantial intra-industry variation in the partial elasticity of capital with respect to asset risk, as well as significant impact of the crisis. Segment variation was driven by product focus. Most notable is the greater impact of the crisis on the U.S. insurers specialising in annuities (least risky product) than on specialists in health lines (riskiest product). During the crisis, the elasticity between asset risk and capital declined for all segments indicating that insurers’ operation may have shifted from offsetting risk to seeking risk.
A Theory of Costly Sequential Bidding

We propose a model of sequential bidding for a valuable object, such as a takeover target, when it is costly submit or revise a bid. An implication of the model is that bidding occurs in repeated jumps, a pattern that is consistent with certain types of natural auctions such as takeover contests. The jumps in bid communicate bidders' information rapidly, leading to contests that are completed with a small number of bids. The model provides several new results concerning revenue and efficiency relationships between different auctions, and provides an information-based interpretation of delays in bidding.
Degree of Integration between Brent Oil Spot and Futures Markets: Intraday Evidence

ABSTRACTWe investigate the integration of oil spot and futures markets using matched, intraday data to avoid nonsynchronous trading issues. Our evidence indicates highly integrated spot and futures...
Pricing and Hedging of Multi Type Contracts under Multidimensional Risks in Incomplete Markets Modeled by General Itô SDE Systems

The HARA and CARA theory of pricing, and the theory of partial, yet the most conservative hedging, of a single (liquid) tradable derivative contract under multidimensionality of risks in incomplete markets, including markets with non-hedgable interest rate risks, was developed by the author in a recent paper. In the present paper this theory is extended to the general case of simultaneous pricing and hedging of multiple (types of) such contracts. The results are based on the generalization of the “fundamental matrix of derivatives pricing and hedging” to include multiple contracts. Some applications are discussed as well.
Using an online community for vehicle design: : project variety and motivations to participate

Firms increasingly seek to use online communities as sources of ideas, innovations, and designs. However, many such open innovation efforts lack sustained participation and ultimately fail. This research sought to understand motivations to participate in a firm-hosted design community and how the nature of the design task influences sustained participation. From an inductive study of a leading vehicle design community, we found project variety—across two dimensions of project autonomy and project complexity—supported a range of motivations to participate and the social practice of vehicle design. We discuss implications of our study for research on online communities and for firms within the global vehicle industry.
Global Technological Integration, Intellectual Property Rights, and Competition Law: Some Introductory Comments

In this Symposium we view global technological integration from two public policy vantage points. One, the international intellectual property rights regime, is concerned with creating and protecting rights and the incentives associated with them. The other, competition law, seeks to protect the process of competition from restraints. If the normative framework for international trade and investment is to be coherent, these two legal projects should be coordinated; each should operate so as to support — or at least not interfere with — the other’s effectiveness. Yet the current state of our knowledge and thinking about these issues does not allow us to assess with any confidence how the international expansion of property rights may affect competition on the international level.Our central objective here is to contribute to fashioning useful and analytically sound perspectives on the intersection of these two legal regimes, and in these introductory comments I sketch some factors to consider in fashioning a competition law perspective on the evolving intellectual property rights system.
Crossing the Rubicon: Including Preference Formation in Theories of Choice Behavior

Economists tend to assume that preferences are given and stable. This allows them to explain changes in behavior largely in terms of variables such as changes in income and relative prices, and more generally in terms of incentives and disincentives. However, sociologists and psychologists have shown that preferences are formed during socialization and continue to be reformulated during adulthood through factors such as persuasion, leadership, and advertising. Hence when comparing behavior at two points in time, one must take into account changes in preferences that may well have occurred during the given period. The challenge is that there is no consolidated theory of what factors drive preferences.
The Structure of a Retail Lease

This paper develops an option-theoretic model of a retail lease. The standard retail lease contains provisions for a security deposit, a base rent, and a percentage rent or a sharing between landlo...