cssi/SciSciGPT-SciSciNet huggingface dataset:
Negotiating Conflict Through Federalism: Institutional and Popular Perspectives

The contours of our federal system are under constant negotiation, as governments construct the scope of one another’s interests and powers while pursuing their agendas. For our institutions to manage these dynamics productively, we must understand the value the system is capable of generating. But no single conception of this value exists, because the virtues and costs of any particular federal-state relationship, in any given federalism controversy, will appear different depending on perspective: the federal, state, and even local will each perceive their own advantages. And none of these conceptions will map perfectly onto the people’s perceptions. In this essay, I attempt to answer the question of what federalism might be good for from each of these perspectives by considering how it has structured various regulatory and social controversies in recent years on matters such as immigration, marriage equality, drug policy, and health care reform. I focus on the administrative and enforcement judgments that each of these debates has required, in order to illuminate the discretionary spaces in which much of the work of federalism occurs. I argue that the value of the system common to all participants and that should govern the negotiation of inter-governmental relations is its creation of a framework for ongoing negotiation of differences large and small. In the spirit of this Feature, I emphasize that having many institutions with lawmaking power enables overlapping political communities to work toward national integration, while preserving governing spaces for meaningful disagreement when consensus fractures or proves elusive. author. Professor of Law, Yale Law School. In developing this essay, I benefitted enormously from conversations with Jessica Bulman-Pozen, Heather Gerken, Abbe Gluck, Alison LaCroix, and Judith Resnik. I also am very grateful for the excellent research assistance of Trinity Brown, Alex Hemmer, and Samuel Kleiner. negotiating conflict through federalism
Enron's Legacy

Enron's collapse was the initial episode in a series of corporate fraud scandals that caused billions of dollars of losses, cost tens of thousands of jobs, and eroded confidence in the integrity of the nation's financial markets. Apart from these very tangible harms, the fraud scandals also contributed to cynical shifts in public attitudes about corporations and their executives. Thus, it was not surprising that Congress called for reforms to address systemic corporate governance failures, while at the same time regulators and prosecutors revised enforcement priorities and developed new strategies to combat large-scale fraud. In addition to increasing transparency and accountability in corporate governance matters, post-Enron reforms give regulators and prosecutors potent new enforcement tools, enhance interagency coordination and cooperation, and provide the financial support essential for the SEC to effectively perform its core regulatory functions. Despite significant post-Enron legislative and regulatory reforms and aggressive civil and criminal enforcement, some observers are skeptical about the pace and focus of the fraud investigations. Of particular concern are what some of them view as skewed prosecutorial priorities. Why, for example, was Martha Stewart on trial when poster CEOs Ebbers, Skilling, and Lay had yet to be charged? This article provides a context for examining these and related concerns. Beginning with Enron, it sets the stage by reviewing seven major financial fraud scandals that have surfaced in the past few years. It then considers important structural reforms that address regulatory and enforcement gaps that allowed Enron and its progeny to slip through the cracks. After evaluating post-Enron reforms, the article examines how - through timely and innovative enforcement strategies - the Justice Department and the SEC have responded to the corporate fraud crisis. It then critiques the criminal enforcement record and challenges several assumptions that underlie criticisms of the current fraud investigations. By examining the government's prosecutorial strategies in the context of Enron, WorldCom, and HealthSouth, the article demonstrates why common criticisms of the timing and direction of recent corporate fraud prosecutions are fundamentally misinformed.
Limiting DNA polymerase delta alters replication dynamics and leads to a dependence on checkpoint activation and recombination-mediated DNA repair

DNA polymerase delta (Pol δ) plays several essential roles in eukaryotic DNA replication and repair. At the replication fork, Pol δ is responsible for the synthesis and processing of the lagging-strand. At replication origins, Pol δ has been proposed to initiate leading-strand synthesis by extending the first Okazaki fragment. Destabilizing mutations in human Pol δ subunits cause replication stress and syndromic immunodeficiency. Analogously, reduced levels of Pol δ in Saccharomyces cerevisiae lead to pervasive genome instability. Here, we analyze how the depletion of Pol δ impacts replication origin firing and lagging-strand synthesis during replication elongation in vivo in S. cerevisiae. By analyzing nascent lagging-strand products, we observe a genome-wide change in both the establishment and progression of replication. S-phase progression is slowed in Pol δ depletion, with both globally reduced origin firing and slower replication progression. We find that no polymerase other than Pol δ is capable of synthesizing a substantial amount of lagging-strand DNA, even when Pol δ is severely limiting. We also characterize the impact of impaired lagging-strand synthesis on genome integrity and find increased ssDNA and DNA damage when Pol δ is limiting; these defects lead to a strict dependence on checkpoint signaling and resection-mediated repair pathways for cellular viability.
The Case Against Race Profiling in Immigration Enforcement

* Associate Dean for Academic Affairs of the School of Law and Professor of Law and Chicana/o Studies; Director, Chicana/o Studies Program, University of California at Davis. J.D., Harvard University (1983); A.B. (Economics), University of California at Berkeley (1980). I presented drafts of this paper at the Harvard Law School conference entitled “U.S. Immigration Policy at the Millennium: With Liberty and Justice for All?” in December 1999; at the Latin American Studies Association 2000 International Congress in Miami in March 2000; at the Immigration Law Teachers Workshop 2000 in San Antonio, Texas in May 2000; at the “NAFTA Impact on the Boarder” conference at the University of Texas at El Paso in October 2000; at law school faculty colloquia at Loyola (Los Angeles) Law School in March 2000 and Marquette Law School in April 2000; and to Chicana/o Studies faculty and students at the California State University at Chico in March 2000. Richard Delgado went above and beyond the call of duty in commenting, editing, and advising me on this paper. Diane Amann, Lenni Benson, Linda Bosniak, Janet Calvo, Christopher David Ruiz Cameron, Angela Davis, Nora Demleitner, Cecelia Espenoza, Ed Fallone, Joan Fitzpatrick, Susan Green, Anne Greer, Barbara Hines, Bill Ong Hing, Joan Howarth, Dan Kesselbrenner, Sylvia Lazos, Steve Legomsky, David Leonard, Frank Rene Lopez, Guadalupe T. Luna, George A. Martinez, Nancy Morawetz, Hiroshi Motomura, Yxta Maya Murray, Karen Musalo, Lori Nessel, Michael A. Olivas, Mary Romero, Victor Romero, Lory Rosenberg, Michael Scaperlanda, Phil Schrag, Ted Seto, Gloria Valencia Weber, Leti Volpp, and various members of the Loyola (Los Angeles) and Marquette law school faculties graciously provided critical comments on a draft. Law students Marlon Cobar, University of California at Davis, class of 2000, and Rogelio Villagrana, class of 2002, offered extremely helpful research assistance. Dean Rex Perschbacher provides significant support for all my projects.
The Right to Innovate

Individual citizens have been found to be a major source of new product and service innovations of value both to themselves and to the economy at large. These citizen innovators operate in a littleunderstood legal environment that we call the innovation wetlands. We show via a review of fundamental rights guaranteed in the U.S. Constitution and elsewhere that individuals in the United States participating in the innovation wetlands possess strong legal protections with respect to both their freedom to innovate and their right to diffuse information about their innovations to others. However, we also show that legislation and regulation—often promulgated without awareness of consumer innovation as a valuable resource—can, in practice, significantly interfere with individuals’ exercise of their fundamental freedom to innovate. This interference can cost society dearly by discouraging and slowing innovation or even thwarting it entirely. Just as intellectual property may chill citizen user and open innovation by raising the costs of innovation, so may regulatory property rights agencies grant to incumbent market actors. We offer three approaches to protecting the valuable resource of innovation by individuals from excessive negative impacts caused by legislation and regulation. First, we propose enhancing general awareness of the issue by framing the concept of individual innovation rights as an “innovation wetlands” that must be protected from encroachment and despoilment. Second, we describe the legislative and regulatory frameworks and practices that demark today’s innovation wetlands, as experienced by individual and collaborating innovators. Third, we suggest improvements that can strengthen protection of the innovation wetlands, including heightening awareness of the issue in existing, mandated cost– * University of Kansas School of Law & MIT Sloan School of Management (torrance@ku.edu). ** MIT Sloan School of Management (evhippel@mit.edu). 794 Michigan State Law Review 2015:793 benefit analyses that are already applied, although imperfectly, to regulation in the United States.
Semiparametric Estimation in Time‐Series Regression with Long‐Range Dependence

. We consider semiparametric estimation in time-series regression in the presence of long-range dependence in both the errors and the stochastic regressors. A central limit theorem is established for a class of semiparametric frequency domain-weighted least squares estimates, which includes both narrow-band ordinary least squares and narrow-band generalized least squares as special cases. The estimates are semiparametric in the sense that focus is on the neighbourhood of the origin, and only periodogram ordinates in a degenerating band around the origin are used. This setting differs from earlier studies on time-series regression with long-range dependence, where a fully parametric approach has been employed. The generalized least squares estimate is infeasible when the degree of long-range dependence is unknown and must be estimated in an initial step. In that case, we show that a feasible estimate which has the same asymptotic properties as the infeasible estimate, exists. By Monte Carlo simulation, we evaluate the finite-sample performance of the generalized least squares estimate and the feasible estimate.
The effects of funding source and management ownership on the productivity of R&D

This study investigates the influence of the source of R&D funds and management ownership on R&D productivity. The lagged effect of the source of R&D funds on R&D output is investigated for a sample of US manufacturing firms in five industries over the 1996–99 period. Estimates based on 779 firm-years show that R&D productivity increases with the proportion of stock held by managers and directors of firms primarily in the Other Electronics industry. The estimates also show that recipients of government-sponsored R&D funds in the Chemicals industry have lower levels of output (sales) for each dollar committed to R&D. In addition, output for firms in the Chemicals industry worsens as management stockholding increases, implying an agency cost rationale for the observed difference in output. The implication is that firms with high manager-owner content are less productive with government-sponsored R&D than with company-financed R&D. The reported results suggest that potential agency costs should be incorporated in government-sponsored R&D contracts. It also suggests that the source of R&D funds should be disclosed and incorporated into the valuation of intangible assets attributable to research and development.
Cost-effectiveness of peer-delivered interventions for cocaine and alcohol abuse among women: a randomized controlled trial.

AIMS: To determine whether the additional interventions to standard care are cost-effective in addressing cocaine and alcohol abuse at 4 months (4 M) and 12 months (12 M) from baseline. METHOD: We conducted a cost-effectiveness analysis of a randomized controlled trial with three arms: (1) NIDA's Standard intervention (SI); (2) SI plus a Well Woman Exam (WWE); and, (3) SI, WWE, plus four Educational Sessions (4ES). RESULTS: To obtain an additional cocaine abstainer, WWE compared to SI cost $7,223 at 4 M and $3,611 at 12 M. Per additional alcohol abstainer, WWE compared to SI cost $3,611 and $7,223 at 4 M and 12 M, respectively. At 12 M, 4ES was dominated (more costly and less effective) by WWE for abstinence outcomes. CONCLUSIONS: To our knowledge, this is the first cost-effectiveness analysis simultaneously examining cocaine and alcohol abuse in women. Depending on primary outcomes sought and priorities of policy makers, peer-delivered interventions can be a cost-effective way to address the needs of this growing, underserved population. TRIAL REGISTRATION: ClinicalTrials.gov NCT01235091. Language: en
Theory and History behind Business Cycles: Are the 1990s the Onset of a Golden Age?

The theory presented in this paper ties together profits, investment, credit, stock prices, inflation, and interest rates. The author discusses new estimates of profit and investment functions with important roles for growth and demand and productivity, price and cost levels, risk perception, credit volume, and credit difficulties. The relationships among these endogenous variables are viewed as constituting an enduring core of business cycles, the exogenous shocks and policy effects as more transitory and peripheral.
The value of commitment in Stackelberg games with observation costs

Abstract We study Stackelberg games in which the follower faces a cost for observing the leader's action. We show that, irrespective of the size of the cost, the leader's value of commitment is lost completely in all pure-strategy equilibria. However, there also exists a mixed-strategy equilibrium that fully preserves the first-mover advantage. In this type of equilibrium, the probability that the follower looks at the leader's action is independent of the cost of looking.
The “Numbers Game” in the Pre- and Post-Sarbanes-Oxley Eras

We address two research questions in this study. First, is there a change in the prevalence of expectations management to meet or beat analysts' earnings expectations in the aftermath of the 2001–2...
Analysts’ Incentives to Overweight Management Guidance When Revising Their Short-Term Earnings Forecasts

ABSTRACT: We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted, based on the credibility and usefulness of the guidance. This overweighting of guidance is present prior to equity offerings and other events that could lead to investment banking business. Although analysts sacrifice their forecast accuracy by overweighting management guidance, they appear to benefit, on average, by subsequently gaining the underwriting business for their banks. Thus, while analysts wishing to please managers are optimistic in their long-term earnings forecasts, they take their cue from management when determining their short-term earnings forecasts.
Can speech by FDA-regulated firms ever be noncommercial?

For over a century, the Food and Drug Administration (FDA or the Agency) and its precursors have regulated what companies say about their products. The FDA itself notes that the regulatory scheme imposed by the Federal Food, Drug, and Cosmetic Act “depends on the use of words” and that its requirements can “explicitly limit speech.” For seventy years, the FDA had little reason to worry about First Amendment constraints. But since 1976, when the Supreme Court reversed its longstanding position that the First Amendment does not protect commercial speech, the Agency has had to confront–perhaps more than any other federal agency–the free speech rights of regulated firms. But how far do those rights extend, and what room do they leave for regulators like the FDA? The answer largely depends on another question: Is the speech commercial or noncommercial? The distinction is paramount. If speech by a regulated firm is commercial, then the FDA can ensure that it is not false or misleading; the Agency can require or compel certain speech; it can impose prior restraints; and it can even limit truthful speech, all within certain parameters.
Predicting probability: regulating the future of preimplantation genetic screening.

Government intervention into the reproductive decisions of individuals has been a significant source of tension and strife within American legal jurisprudence for the last century. This tension has caused many lawmakers in the United States to eschew attempts to regulate assisted reproductive technology, including preimplantation genetic diagnosis (PGD). PGD enables prospective parents to select embryos created through in vitro fertilization based on the presence of a genetic or chromosomal abnormality. Use of PGD has been limited due to technological constraints, expense, and moderate success rates.Recent advances in genetic testing technology will remove many of these obstacles, substantially increasing both the benefits available through PGD and its patient population. These advances will enable parents to do more than diagnose serious disorders in their potential offspring; they will be able to screen their embryos for hundreds of genetic and chromosomal characteristics at one time - preimplantation genetic screening (PGS).While these advances in reproductive genetic testing promise significant benefits, they also present risks to both individuals and society. Government intervention is warranted to ensure the quality and safety of assisted reproduction, including PGS, and to monitor its use for risks to individuals or society. The government should only intervene when the free exercise of individual reproductive autonomy threatens harm to others. This article proposes the creation of a federal regulatory body to license and monitor the practice of assisted reproduction and suggests a balancing framework for addressing conflicting interests in the use of PGS to screen for various genetic characteristics.
Making Sense of Successor Liability

IV. THE IMPORTANCE OF FRAUD IN SUCCESSOR LIABILITY CASES 764 A. Successor Liability for Actual Fraud: The Traditional Requisites for De Facto Merger and Mere Continuation....764 B. Successor Liability for Constructive Fraud 768 C. Evaluating the Transferee’s Role in a Post-Transfer Fraud on Creditors 774 1. The Transferee Who Knows 774 2. The Transferee Who Should Have Known 776
Cubes to quads: The move of QQQ from AMEX to NASDAQ

We examine the microstructure effects of the QQQ ETF listing change from AMEX to NASDAQ. We find that even though the stock traded on both venues before and after the listing change, NASDAQ reaped a substantial increase in order flow for QQQ at the expense of the AMEX. The change results in a decline in trading costs, consolidation of order flow, and a less fragmented market for QQQ. We hypothesize that the avoidance of the explicit and implicit costs imposed by the Intermarket Trading System for NASDAQ traders was partly responsible for the improvement in QQQ market quality.
Price Delegation and Performance Pay: Evidence from Industrial Sales Forces

Delegation is a central feature of organizational design that theory suggests should be aligned with the intensity of incentives. We explore a specific form of delegation, namely price delegation, whereby firms allow sales people to offer a maximum discount from the list price to their customers. We develop a model of the price delegation decision based on information acquisition that relies on characteristics of our empirical context of industrial sales. Using data on individual sales people, one per firm from a survey of 261 firms, we show that, consistent with predictions from our model, sales people are given more pricing authority when they are more experienced and more capable, when there is less environmental uncertainty, and, to a lesser extent, when customer valuations for the product are more variable. Also consistent with our model, we show that price delegation is increasing in the intensity of incentives given to agents. (JEL D23, D82, L22, M52)
THE SPEED OF ADJUSTMENT OF PRICES TO PRIVATE INFORMATION: EMPIRICAL TESTS

We estimate speeds of adjustment of individual stock prices to private information using daily data. We use a model in which private information gives rise to return variance and private information decays linearly over time. We find that, on average, about 85 percent to 88 percent of private information is incorporated into prices within one trading day, with variation depending upon the stock's trading volume and whether the stock is listed on an exchange. The findings support strong form market efficiency.
The Genre of the Mood Memoir and the Ethos of Psychiatric Disability

Recent rhetorical accounts of mental illness tend to suggest that psychiatric disability limits rhetorical participation. This article extends that research by examining how one group of the psychiatrically disabled—those diagnosed with mood disorders—is using a particular narrative genre to engender participation, what I call the mood memoir. I argue here that mood memoirs can be read as narrative-based responses to the rhetorical exclusion suffered by the psychiatrically disabled. This study employs narrative and genre theory to reveal mood memoirists’ tactics for generating ethos in the face of the stigma of mental illness.
The Role of Second‐Order Uniformity in Disparate Treatment Law: McDonnell Douglas's Longevity and the Mixed‐Motives Mess

A number of scholars predicted that the Supreme Court's decision in Desert Palace, Inc. v. Costa heralded the demise of the three-step disparate treatment proof structure of McDonnell Douglas Corp. v. Green. Yet, the McDonnell Douglas framework is alive and well. In this article, I explain why the predictions of McDonnell Douglas's death were premature. Disparate treatment claims can be made pursuant to a variety of statutes. Thus, disparate treatment law develops on two levels: within the specific context of each individual statute and on the more general level among the various statutes. I call these two levels, respectively, the first-order and the second-order. Desert Palace offered the possibility of first-order unification of Title VII disparate treatment under the motivating factor framework of the 1991 Civil Rights Act. Yet, in the wake of Desert Palace, the motivating factor framework has not risen to prominence as some scholars predicted. Because Congress specifically amended only Title VII to add the motivating factor framework with the 1991 Act, most courts refuse to apply the 1991 Act's motivating factor framework to the ADEA, the ADA, and even retaliation claims under Title VII. Mixed-motives claims are treated differently depending upon the statute pursuant to which they are made. This article argues that courts and litigants will continue to cling to McDonnell Douglas so long as they lack a viable, coherent alternative to the McDonnell Douglas framework. Thus, Congress should that the 1991 Act's motivating factor framework applies to all federal anti-discrimination statutes. Otherwise, McDonnell Douglas will continue to thrive. Despite its faults and shortcomings McDonnell Douglas provides the second-order uniformity and consistency to disparate treatment law that courts and litigants desire.
Economic Considerations and Class Size

This paper examines evidence on the effect of class size on student achievement. First, it is shown that results of quantitative summaries of the literature, such as Hanushek (1997), depend critically on whether studies are accorded equal weight. When studies are given equal weight, resources are systematically related to student achievement. When weights are in proportion to their number of estimates, resources and achievements are not systematically related. Second, a cost-benefit analysis of class size reduction is performed. Results of the Tennessee STAR class-size experiment suggest that the internal rate of return from reducing class size from 22 to 15 students is around 6%.
UNIVERSAL JURISDICTION, UNIVERSAL PRESCRIPTION? A PRELIMINARY ASSESSMENT OF THE AFRICAN UNION PERSPECTIVE ON UNIVERSAL JURISDICTION

As a measure to combat impunity, the idea that any country in the world may assert jurisdiction over anyone involved in serious international crimes, irrespective of the place of the offence or the nationality of the perpetrator or victim, is compelling both logically and morally. Legally, however, ‘universal jurisdiction’ remains highly contested. When invoked, it often leads to serious disagreements between states regarding its nature, content and scope of application. This article examines one such and recent dispute between the African and European Unions. It analyzes the recent African government objections to the use of universal jurisdiction by French and Spanish courts against certain Rwandan officials. The author suggests that while part of the African Union concern seems exaggerated, its current stance exposes legitimate concerns about the legality, legitimacy and practicality of universal jurisdiction. These should be addressed to harness the immense potential of the universality principle. He also challenges the propriety of prosecuting alleged African crimes within the national courts of certain European states, especially former colonial powers like Belgium, which was historically implicated in crimes against humanity in places like the Congo. He concludes with some preliminary observations welcoming the recent African proposal to clarify, within the framework of the United Nations General Assembly, the scope and limits of universal jurisdiction.
Entry deterrence: The case of a buyer with market power

The model considers a seller operating under the threat of an arbitrarily large number of unknown potential entrants and facing a strategic buyer. It is shown that the seller's Nash best response function slopes downward in price-output space, while that of the buyer slopes upward. The Nash equilibrium may be associated with a lower probability of entry than the equilibrium at which the buyer behaves non-strategically. With the buyer as the Stackelberg leader, the price is shown to decrease relative to that at the Nash equilibrium, but the probability of entry may rise or fall.
The Relationship Between Education and Adult Mortality in the United States

Prior research has uncovered a large and positive correlation between education and health. This paper examines whether education has a causal impact on health. I follow synthetic cohorts using successive U.S. censuses to estimate the impact of educational attainment on mortality rates. I use compulsory education laws from 1915 to 1939 as instruments for education. The results suggest that education has a causal impact on mortality, and that this effect is perhaps larger than has been previously estimated in the literature. Copyright 2005, Wiley-Blackwell.
Overcoming Chinese Monetary Division and External Anchoring in East Asia

There are few recent historical precedents for maintaining the high degree of separation that still prevails between the internal monetary arrangements of Hong Kong and mainland China. This paper e...
Evidence-Based Access To Justice

The call for evidence-based practice permeates the fields of medicine, social services, education and criminal justice. The 2010 federal healthcare reform legislation, for example, funds research regarding the effectiveness of medical treatments, as did the 2009 federal stimulus bill. The No Child Left Behind Act and Individuals With Disabilities Education Act (“IDEA”) each encourage the use of scientifically validated education methods. The Education Sciences Act of 2002 even created a unit within the Department of Education charged with using scientifically valid methods to investigate “the effectiveness of Federal and other education programs.” The National Institute of Justice promotes the use of criminal justice methods that have been proven effective. As this article discusses, a comparable evidence-based approach is notably absent from the many efforts to expand access to the justice system for people facing such civil legal problems as foreclosure, eviction, child custody disputes, domestic violence, or consumer fraud claims. During the past decade, state courts and civil legal aid programs around the nation have begun using a variety of tools to expand access, including simplified court procedures, advice-only
Back to Basics: Forecasting the Revenues of Internet Firms

This paper examines the roles played by past revenues, web usage data, and analysts in forecasting the future revenues of internet firms during the years 1998 to 2000. For this time period our analysis shows that estimates of web traffic growth have significant incremental value in the prediction of revenues above time-series forecasts. Furthermore, analysts almost always underestimate the revenues of internet firms. Historical revenue growth has incremental predictive power over analysts' forecasts for portal and content/community firms, but not for our e-tailer sample. Moreover, the stocks of the portal and content/community firms with high historical revenue growth earn higher abnormal returns during our sample period than do those with low historical growth. Estimates of web usage growth generally do not have incremental value over analysts' forecasts for predicting the revenues of either set of firms. However, perfect foreknowledge of actual web usage growth would provide incremental predictive power. Collectively, our findings point to the potential value for forecasting purposes of both improving upon the web usage estimates and obtaining more timely reports of actual web traffic.
A model of a two-stage all-pay auction

Abstract The present paper studies a simple two-stage model of an all-pay auction under complete information. All-pay auctions are often used to model competition with irreversible investments such as political lobbying, and in the existing models, the equilibrium outcomes are quite different from the winner-pay auctions (under complete information): The unique equilibrium is in non-degenerate mixed strategies in the sealed-bid all-pay auction, and the highest value bidder wins at (virtually) no cost in the dollar auction. In sharp contrast with those existing models, the equilibrium outcome in the present setting is almost identical to the winner-pay auctions. That is, (a) the highest value bidder wins with probability one, and (b) the revenue of the seller is equal to the second highest value among the bidders. Also, from a mechanism-design point of view, the present game form is more robust than other all-pay mechanisms in that the seller does not need any information about the bidders’ valuations. Although the analysis focuses on the two-bidder two-stage case, the results extend to arbitrary numbers of bidders and stages.
The information content of litigation participation securities: the case of CalFed Bancorp

Abstract CalFed Bancorp is one of 126 S&Ls suing the U.S. government for breach of contract related to supervisory goodwill, a form of goodwill created by the acquisition of insolvent thrifts during the early 1980s. Before a determination of damages in its lawsuit, CalFed announced and issued a litigation participation security giving shareholders a proportional claim on recovered damages, if any. This announcement generated a positive excess return in part because it made CalFed a more likely acquisition target. Trading in the security also reveals important, yet previously unavailable, information about CalFed's lawsuit: its price reveals a market-based estimate of damages while its beta reveals information regarding expected returns and trial duration. In a broader context, this paper identifies acquisition facilitation as a benefit of issuing targeted stock and highlights a series of lawsuits that will set important precedents regarding the determination of liability and the estimation of damages in breach of contract cases.
Accounting Choices: Variation in Managerial Opportunism

This study focuses on variation in managers’ accounting choices given motivations to use accounting accruals opportunistically. Prior research identifies a number of motivations arising from accounting–based contracts that encourage opportunistic reporting by managers. However, prior research implicitly assumes all managers respond identically to the same contractual motivations. This study identifies variation in managers’ responses to contractual motivations involving accruals that is related to managers’ stewardship of corporate assets. Evidence shows that modeling how managers use corporate assets enhances the explanation of their accounting choices given motivations to (a) use accruals opportunistically, and (b) to smooth income via accruals. Managers with high ratings on judicious use of corporate assets are less responsive to motivations to use accruals opportunistically, and to smooth income via accruals, than managers with low ratings. This evidence suggests that not all managers are equally opportunistic, and that modeling this factor helps explain cross–sectional differences in managers’ accounting choices.
Public involvement methods in natural resource policy making: Advantages, disadvantages and trade-offs

IntroductionIn the late 1960s and 1970s, legislation such as the National EnvironmentalPolicy Act (1969), the Coastal Zone Management Act (1972), and the NationalForest Management Act (1976) called for public hearings and comment periodsto allow citizen input into the policy making process. During this same timeframe, the Department of Defense and the Environmental Protection Agencyalso began utilizing citizen advisory committees
Bridging Level-K to Nash Equilibrium

We introduce NLK, a model that connects the Nash equilibrium (NE) and Level-K. It allows a player in a game to believe that her opponent may be either less or as sophisticated as, she is, a view su...
Non-monotonic network effects and market entry

The simple circular model of horizontal product differentiation, in which firms compete in price, is characterized by excessive firm entry in equilibrium. When non-monotonic network effects are present, this result no longer holds. If consumers differ in their optimal number of other consumers choosing their same good, entry in equilibrium can be insufficient.
Human Capital and the Balance Sheet

Practitioners and personal finance textbooks generally exclude human capital when constructing balance sheets although this asset represents an individual’s earning power and is liquidated over time to meet financial needs. Representing human capital on the balance sheet recognizes its importance as a factor in financial decisions. For many investors, including the value of human capital justifies an increase in the level of risk in the portfolio. The returns from human capital are often hedged with life and disability insurance which can also be incorporated into the financial statement. The intent of this presentation is to initiate a discussion on the place of a contingent asset such as human capital in a household’s balance sheet.
When Leaders Matter: Rebel Experience and Nuclear Proliferation

This article contributes to a growing literature on leaders in international politics by explaining why and how the background experiences of leaders influence nuclear proliferation. Given nuclear weapons’ crucial role in world politics, examining the importance of leaders for nuclear proliferation represents a key development in research on leaders. We argue that leaders with a particular experience—participation in a rebellion against the state—are more likely than their nonrebel counterparts to pursue nuclear weapons. Former rebels are aware of the contingency of their rule and more likely to value weapons that could bolster national independence. Drawing on a new dataset on leader participation in rebel activities, we analyze 1,342 leaders in office from 1945 to 2000. The results strongly support our theory, even when accounting for leader selection. Our findings underscore the value in using leaders—not just states—as a unit of analysis in international relations research.
OCIPs in the Future of the Insurance Industry: Legal and Regulatory Considerations

Owner-Controlled Insurance Programs (OCIPs, also referred to “Wrap-Up” programs), are becoming a popular insurance program in the construction industry. Some states have placed statutory restrictions and/or prohibitions on OCIPs. However, there are only 12 states to date which have even enacted any statute concerning OCIPs.In this article, I contend that the future availability of OCIPs in the insurance industry may largely be dictated on statutory grounds. It is a call for state legislatures to critically examine the policies and purposes of OCIPs and to enact legislation which provides guidance to the industry and courts. First, two cases, one from the Supreme Court of Oklahoma in 1993 and the other a recent 2011 decision from the Supreme Court of Alaska, emphasize the necessity of state statutes which clearly define OCIPs and expressly authorize their permissibility. In Independent Insurance Agents of Oklahoma v. Oklahoma Turnpike Authority, the Supreme Court of Oklahoma decided the question of whether Oklahoma law even permitted the use of an OCIP. Most recently, the Supreme Court of Alaska held in State v. Alyeska Pipeline Service Co. that an Alaska statute governing OCIPs did not govern (and thus did not prohibit) non-construction OCIPs. Both of these cases serve as examples which heighten the necessity of state statutory guidance.Second, there is an emerging split of authority among jurisdictions and courts concerning whether a premises owner, general contractor, and/or subcontractor is entitled to assert the exclusive remedy defense to bar the claims of employees of either general contractors/subcontractors who would otherwise recover benefits for their injuries through worker’s compensation. I argue that this development highlights the necessity for state statutory provisions which expressly provide that a premises owner, general contractor, and/or subcontractor is entitled to assert the exclusive remedy defense if it contractually provides, supplies, and/or makes available worker’s compensation insurance under an OCIP program.This article concludes with a number of suggestions which state legislatures should consider to ensure OCIP programs remain solvent in the future.
Basic science and clinical application of the contrast avoidance model in generalized anxiety disorder

The Contrast Avoidance model (Newman & Llera, 2011) proposes that individuals with generalized anxiety disorder (GAD) are excessively sensitive to negative emotional shifts (contrasts) in response to unpleasant events, and thus recruit a state of sustained intrapersonal negativity via worry as a defensive stance against such shifting states. Here we review the basic science related to environmental, psychological, and biological risk factors in the development of such emotional sensitivities in GAD, and present evidence supporting the position that worry and maladaptive interpersonal styles are employed as defensive strategies to protect against emotional contrasts. We present 2 case examples to elucidate these issues, as well as to introduce specific clinical recommendations for targeting and treating these behaviors. Suggestions for future avenues of research are also discussed.
Who Cares about Auditor Reputation

I provide evidence on the demand for auditor reputation by examining the defections of Arthur Andersen LLP's clients following the accounting scandals and criminal conviction marring the auditor's reputation in 2002. About 95 percent of clients in my sample did not switch auditors until after Andersen was indicted for criminal misconduct regarding its failed audit of Enron Corp. I test whether the timing of client defections and the choice of a new auditor are consistent with managers' incentives to mitigate potentially costly information and agency problems. I find that clients defected sooner, mostly to another Big 5 auditor, if they were more visible in the capital markets; such clients attracted more analysts and press coverage, had larger institutional ownership and share turnover, and raised more cash in recent security issues. However, my proxies for agency conflicts — managerial ownership and financial leverage — are not associated with the timing of defections or the choice of new auditor. Overall, my study suggests that firms more visible in the capital markets tend to be more concerned about engaging highly reputable auditors, consistent with such firms trying to build and preserve their own reputations for credible financial reporting.
The ‘Shell Bill’ Game: Avoidance and the Origination Clause

With increasing frequency, many important revenue laws, such as the Affordable Care Act and the American Taxpayer Relief Act of 2012, begin as “shell bills.” The Origination Clause of the Constitution aims to place decisions over tax policy closer to the people by requiring that bills raising revenue begin in the House of Representatives, but the Clause also allows the Senate to amend such bills. The Senate has interpreted its amendment power broadly, striking the language of a bill passed by the House (the shell bill), and replacing it entirely with its own unrelated revenue proposal. According to a new challenge against the Affordable Care Act, this shell bill game is an unconstitutional sleight of hand because it obfuscates the bill’s true origins in the Senate. The constitutional fate of the Affordable Care Act and myriad other revenue laws, as well as the intra-congressional balance of power over revenue policy, turns on the interpretation of the Senate’s power to amend revenue legislation, an analysis heretofore unexplored in the academic literature. This Article draws upon constitutional text, history, and congressional and judicial precedent to conclude that such amendment power is broad and, accordingly, that revenue laws that began as shell bills do not violate the Origination Clause. This Article also proposes a conceptual framework for analyzing existing jurisprudence interpreting the Origination Clause—a “legislative process avoidance” doctrine, whereby the Court deflects searching review of lawmaking procedures. Grounded in constitutional text and history, theories of judicial review, and longstanding principles guarding congressional purview over internal rules, this legislative process avoidance doctrine further supports deference to the Senate’s expansive interpretation of its amendment power  Associate Professor of Law, Brooklyn Law School. JD, Yale Law School. I am grateful to Ellen Aprill, Corey Brettschneider, Jim Brudney, Michele Goodwin, Abner Greene, Andrew Kent, Ed Kleinbard, Ed McCaffrey, John C. Roberts, Deborah Schenk, Gregory Shaffer, Dan Shaviro, Nancy Staudt, Linda Sugin, Nelson Tebbe, Steve Thel, and participants at the USC Gould School of Law Sixteenth Amendment Anniversary Conference for extremely valuable feedback. I also owe thanks to Kiran Sheffrin and Jana Hymowitz for outstanding research assistance, to Bobbi Bullock for excellent administrative support, and to the Dean’s Summer Research Stipend Program at Brooklyn Law School for funding my research on the article, with particular thanks to Dean Allard. Washington University Open Scholarship 660 WASHINGTON UNIVERSITY LAW REVIEW [VOL. 91:659 without rendering the Clause a nullity. Separation of powers concerns also show the doctrine’s promise in other constitutional contexts, such as the interpretation of gaps in the lawmaking process left open by Article 1, Section 7.
Beyond International Commercial Arbitration? The Promise of International Commercial Mediation

Although international commercial arbitration has long been the preferred means of resolving cross-border business disputes, the international corporate community has become increasingly concerned about increasing costs, delays and procedural formalities. As a result, parties are looking for other means of resolving cross-border business disputes. One of the more popular alternatives is mediation. Advocates of mediation extol its many benefits, including its ability to resolve disputes more quickly and with fewer costs and formalities than other alternatives. However, very little research exists on how mediation operates in the international commercial context. This Essay therefore considers whether and to what extent international commercial mediation can be said to be superior to international commercial arbitration.That question is answered in a three-step analysis. First, this Essay outlines the unique characteristics of international commercial disputes to determine whether such matters are amenable to mediation. The discussion then considers what might motivate parties to use international commercial mediation if savings of time, cost and procedural formality are taken out of the equation. Finally, the Essay describes how public international law might be used to improve certain deficiencies in international commercial mediation. In so doing, the discussion aims to help parties conduct a realistic evaluation of the prospects of international commercial mediation and find a way to ensure the procedure’s long-term success.
What Are We Meeting For? The Consequences of Private Meetings with Investors

AbstractRegulation Fair Disclosure was passed in 2000 in response to the concern that certain investors were gaining selective access to privileged firm information. In spite of the passage of this regulation, some investors continue to meet privately with executives. Using a unique set of proprietary records of all one-on-one meetings between senior management and investors for a New York Stock Exchange-traded firm, we investigate the impact of private meetings on investor decisions. We find that when investors meet privately with management they make more informed trading decisions. This improvement in trading is concentrated in hedge funds, but is not present for investment advisors or pension funds. Overall, our results suggest that private meetings help a select group of investors make more informed trading decisions.
Time diversification: Definitions and some closed-form solutions

Abstract We establish general conditions under which younger investors should invest a larger proportion of their wealth in risky assets than older ones. In the finite horizon dynamic setting, we show that such phenomenon, known as ‘‘time diversification,” can occur in the presence of human wealth, guaranteed consumption, or mean-reverting stock returns. We formalize two alternative notions of time diversification commonly confounded in the literature. Analytic solutions are provided for both time-series and cross-sectional forms of time diversification. To our best knowledge, this paper is the first to solve in closed-form the hedging demand for a CARA investor with inter-temporal consumption and a finite horizon, facing mean-reverting expected returns. Our results indicate that horizon can have a significant effect on the portfolio demand of a CARA investor due to inter-temporal hedging.