cssi/SciSciGPT-SciSciNet huggingface dataset:
How Much Is Investor Autonomy Worth

There is a worldwide trend towards defined contribution savings plans, where investors are often able to select their own portfolios. How much is this freedom of choice worth? We present retirement investors with information about the distribution of outcomes they could expect to obtain from the portfolios they picked for themselves, and the same information for the median portfolio selected by their peers. A majority of our survey participants actually prefer the median portfolio to the one they picked for themselves. We investigate various explanations for these findings and offer some evidence that the results are partly attributable to the fact that investors do not have well-defined preferences. A major trend in defined contribution savings plans is the expansion in the choices available to participants. A decade ago most plans offered very few choices, often just a money market fund, a bond fund, a stock fund, and stock in the company sponsoring the plan. Now the plans offer an average of 11 funds (Hewitt Associates (1999)), and some plan participants are even permitted to pick individual securities through a direct brokerage account. And, in Sweden, a recent social security reform giving workers the right to direct 2.5 percent of their salary to individual accounts offered a stunning 450 different funds to choose from. Do investors benefit from this ability to choose portfolios for themselves? It is a basic principle of economic theory that expanding the choice set cannot make a consumer worse off (at least ignoring decision-making costs). Here, where the financial stakes are quite high, and choices are made infrequently, many would argue that more choices are unambiguously a good thing. Still, choice comes at a cost. For example, in discussing various options for a fully or partially privatized social security system, an important design issue is how much choice to offer participants. Diamond (2002) estimates
Incentives to Exercise

Can incentives be effective in encouraging the development of good habits? We investigate the post-intervention effects of paying people to attend a gym a number of times during one month. In two studies we find marked attendance increases after the intervention relative to attendance changes for the respective control groups. This is entirely driven by people who did not previously attend the gym on a regular basis. In our second study, we find improvements on health indicators such as weight, waist size, and pulse rate, suggesting the intervention led to a net increase in total physical activity rather than to a substitution away from nonincentivized ones. We argue that there is scope for financial intervention in habit formation, particularly in the area of health.
Gray Markets in Cyberspace

In this paper I respond to Professor Julie Cohen's argument that Cyberspace is lochnerized through the use of neo-classical economics to support a regime of strong property and contract rights for web-based transactions. I develop an alternative model that also has neo-classical foundations but has different implications from the prescription of Professor Cohen's cyberlochnerians. The legal and economic analysis I develop puts flesh to Professor Carol Rose's category of "limited common property" and draws on the theory of gray markets and club goods. I propose that a gray market model is an appropriate one by which to describe and analyze Cyberspace transactions. In the paper, I develop the gray market legal model and apply it to the phenomenon of hypertext linking and framing. The paper concludes with my laying the foundation for the legal model in the economic theory of club goods, especially the problem of club good pricing. I show how websites can be understood as club goods, and I discuss the resulting allocation and distribution issues. Appropriate allocation mechanisms will depend upon the nature and heterogeneity of uses by users of the site. If users are heterogeneous in the intensity of use, website owners are better off if they allow some unauthorized uses of the site as opposed to expanding resources on technological and legal means of exclusion. As a result, gray markets in information arise and are socially desirable. The economic model I develop supports my legal prescription: relatively weak contract and property rights for web-based transactions and greater allowance for fair use under intellectual property law.
Longshots, overconfidence and efficiency on the Iowa Electronic Market

Abstract We study the forecast accuracy and efficiency of popular “binary” prediction markets. Such markets forecast probabilities for future states of the world (e.g., election winners) by paying off $0 or $1 depending on the realized state (e.g., who actually wins). To assess accuracy, forecast probabilities must be compared to realization frequencies, not individual realizations. We use Iowa Electronic Market (IEM) data to test efficiency against two alternative propositions from behavioral finance: the longshot bias and the overconfidence bias (which yield opposing predictions). No longshot bias appears in IEM markets. Nor does overconfidence influence prices at short horizons. However, overconfident traders may bias prices at intermediate horizons. While the markets are efficient at short horizons, non-market data indicate some intermediate-horizon inefficiency. We calculate Sharpe ratios for static trading strategies and document returns for dynamic trading strategies to assess the economic content of the inefficiencies.
Institutional Change and Firm Creation in East-Central Europe: An Embedded Politics Approach^

A central debate about the transformation of postcommunist countries is how political approaches to institution building affect firm restructuring and creation. This debate has largely been dominated by theories that emphasize either the depoliticization of institutional designs or the determining impact of preexisting social structures. By examining the relative economic performance of Poland and the Czech Republic in the 1990s, this article offers an alternative, embedded politicsanalysis that views firm and institutional creation as intertwined experiments. Czech attempts to implant a depoliticized model of reform impeded institutional development and the reorganization of sociopolitical networks, in which firms are embedded. Poland facilitated institutional experiments not only in the ways it promoted negotiated solutions to restructuring but also in the ways it empowered subnational governments. The study utilizes data on manufacturing networks, privatization, bankruptcy, and regional government refo...
Exchange rate pass‐through in a small open economy: Panel evidence from Hong Kong

This paper presents estimates of exchange rate pass-through derived from a panel of very disaggregated import unit-values to Hong Kong. The estimation approach builds on that utilized by Knetter (1989, 1993) to study export pricing and pricing to market. The three-dimensional data set examined comprises Hong Kong's top eight floating exchange rate trading partners, and twenty-one of the top 5-digit SITC imports since 1992. Pass-through estimates for Hong Kong imply relatively faster import price adjustment than is typically found for larger, less open economies. These estimates are robust to a number of sensitivity tests. Finally these results confirm, from a different perspective, findings by Parsley (2001) that deviations from the law of one price play a relatively smaller role in real exchange rate movements for Hong Kong to be supplies than for other East Asian countries. Copyright © 2003 John Wiley & Sons, Ltd.
Differential bank behaviors around the Dodd–Frank Act size thresholds

Abstract The Dodd–Frank Act created differential regulatory requirements for banks above specified asset size thresholds. Event study results imply greater expected net regulatory costs for above-threshold banks. Consistent with hypotheses that near-below-threshold banks alter their behavior to attempt to avoid or delay the regulatory costs and/or to ensure growth that they do experience is highly beneficial, we find that near-below-threshold banks grow assets, risk-weighted assets, and total loans more slowly, and charge higher rates on commercial loans. The results suggest that the Dodd–Frank Act created costs that near-below-threshold banks attempt to avoid by altering their behaviors in economically important ways.
Feminism and Disciplinarity: The Curl of the Petals

This Symposium is brought to you for free and open access by the Law Reviews at Digital Commons at Loyola Marymount University and Loyola LawSchool. It has been accepted for inclusion in Loyola of Los Angeles Law Review by an authorized administrator of Digital Commons at LoyolaMarymount University and Loyola Law School. For more information, please contact digitalcommons@lmu.edu.
Perceived information security, financial liability and consumer trust in electronic commerce transactions

Electronic commerce (EC) transactions are subject to multiple information security threats. Proposes that consumer trust in EC transactions is influenced by perceived information security and distinguishes it from the objective assessment of security threats. Proposes mechanisms of encryption, protection, authentication, and verification as antecedents of perceived information security. These mechanisms are derived from technological solutions to security threats that are visible to consumers and hence contribute to actual consumer perceptions. Tests propositions in a study of 179 consumers and shows a significant relationship between consumers’ perceived information security and trust in EC transactions. Explores the role of limited financial liability as a surrogate for perceived security. However, the findings show that there is a minimal effect of financial liability on consumers’ trust in EC. Engenders several new insights regarding the role of perceived security in EC transactions.
The Impact of Stronger Shareholder Control on Bondholders

We study the impact of stronger shareholder control on bondholders. We find that the passage of shareholder-sponsored governance proposals causes a decline in credit default swap spreads, indicating a net positive effect on bondholders. Evidence suggests that the direct benefit of stronger shareholder control, through the “management disciplining” channel, is larger than the combined adverse effects of directly escalating shareholder-bondholder conflict and indirectly exacerbating exposure to shareholder opportunism. Results are stronger for firms with existing high levels of shareholder-bondholder conflict and for proposals that mitigate managerial entrenchment without exacerbating risk-shifting. Finally, stronger shareholder control improves credit ratings and operating performance in the long-term.
Exploring the Use of the Word "Citizen" in Writings on the Fourth Amendment

This article notes the practice in judicial opinions on the Fourth Amendment of using the word "citizen" when referring to the rights secured by the Amendment. This practice essentially treats "citizen" as synonymous with person or "people," the term actually used in the Amendment. Thus, judges and commentators use the term, to some extent indiscriminately, in cases and commentary that do not deal with issues of citizenship or the degree to which the protection afforded under the Fourth Amendment is affected by one's citizenship status. The article explores use of the word "citizen" in describing or conceptualizing Fourth Amendment rights and suggests that use of the term may be inaccurate or misleading where it is not material. Moreover, use of the term where it is not material tends to exacerbate bias against immigrants because it serves as a continual reminder of their difference from the native population.
Individual and group decision making under risk: An experimental study of Bayesian updating and violations of first-order stochastic dominance

This paper reports the results of experiments designed to test whether individuals and groups abide by monotonicity with respect to first-order stochastic dominance and Bayesian updating when making decisions under risk. The results indicate a significant number of violations of both principles. The violation rate when groups make decisions is substantially lower, and decreasing with group size, suggesting that social interaction improves the decision-making process. Greater transparency of the decision task reduces the violation rate, suggesting that these violations are due to judgment errors rather than the preference structure. In one treatment, however, less complex decisions result in a higher error rates.
Throughput optimization in constant travel-time dual gripper robotic cells with parallel machines

Constant travel-time robotic cells with a single gripper robot and with one or more machines at each processing stage have been studied in the literature. By contrast, cells with a dual gripper robot, although more productive, have so far received scant attention, perhaps due to their inherent complexity. We consider the problem of scheduling operations in dual gripper robotic cells that produce identical parts. The objective is to find a cyclic sequence of robot moves that minimizes the long-run average time to produce a part or, equivalently, maximizes the throughput. We provide a structural analysis of cells with one or more machines per processing stage to obtain first a lower bound on the throughput and, subsequently, an optimal solution under conditions that are common in practice. We illustrate our analysis on two cells implemented at a semiconductor equipment manufacturer and offer managerial insights for assessing the potential productivity gains from the use of dual gripper robots.
The Politics of Judicial Opposition

The study takes a mathematical approach on one of the variables in judicial decision-making. It takes into consideration that state appellate judges are either reelected by voters or reappointed by another governmental branch and sees how seeking a reelection or reappointment influences the decision-making process. Moreover, the author probes into who are the most likely to dissent in important cases: judges seeking reelection or those seeking reappointment. Rezumat: Articolul priveote dintr-o perspectiva matematica una dintre variabilele modului de deliberare judiciara. Astfel, autorul are in vedere ca judecatori statali de la instanþele de apel sunt fie realeoi de catre alegatori, fie reconfirmaþi de catre o alta putere in stat oi in cadrul articolului analizeaza cum dorinþa de a fi reales sau reconfirmat influenþeaza procesul judiciar deliberativ. Mai mult, autorul cerceteaza ce categorie de judecatori este mai probabil sa emita opinii separate in cauzele importante: judecatorii care ioi doresc sa fie realeoi sau cei care doresc sa fie reconfirmaþi.
Knowledge decay between semesters

Abstract Summer learning loss has been widely studied in K-12 schooling, where the literature finds a range of results. This study provides the first evidence of summer learning loss in higher education. We analyze college students taking sequential courses with some students beginning the sequence in the fall semester and others in the spring. Those beginning in the fall experience a shorter break between the courses. We test whether the length of that gap explains the students’ performance in the subsequent course. Initial results suggest that a longer gap is associated with lower grades. However, including student fixed effects eliminates the observed knowledge decay with a few exceptions: knowledge decay remains for students in language courses, for students with below-median SAT Math scores, and for students with majors outside STEM fields.
Caring for mom and neglecting yourself? The health effects of caring for an elderly parent

We examine the physical and mental health effects of providing care to an elderly mother on the adult child caregiver. We address the endogeneity of the selection in and out of caregiving using an instrumental variable approach, using the death of the care recipient and sibling characteristics. We also carefully control for baseline health and work status of the adult child. We explore flexible specifications, such as Arellano-Bond estimation techniques. Continued caregiving over time increases depressive symptoms and decreases self-rated health for married women and married men. In addition, the increase in depressive symptoms is persistent for married women. While depressive symptoms for single men and women are not affected by continued caregiving, there is evidence of increased incidence of heart conditions for single men, and that these effects are persistent. Robustness checks indicate that these health changes can be directly attributable to caregiving behavior, and not due to a direct effect of the death of the mother. The initial onset of caregiving has modest immediate negative effects on depressive symptoms for married women and no immediate effects on physical health. Negative physical health effects emerge 2 years later, however, suggesting that there are delayed effects on health that would be missed with a short recall period. Initial caregiving does not affect health of married men.
Collect it all: national security, Big Data and governance

This paper is a case study of complications of Big Data. The case study draws from the US intelligence community, but the issues are applicable on a wide scale to Big Data. There are two ways Big Data are making a big impact: a reconceptualization of (geo)privacy, and “algorithmic security.” Geoprivacy is revealed as a geopolitical assemblage rather than something possessed and is part of emerging political economy of technology and neoliberal markets. Security has become increasingly algorithmic and biometric, enrolling Big Data to disambiguate the biopolitical subject. Geoweb and remote sensing technologies, companies, and knowledges are imbricated in this assemblage of algorithmic security. I conclude with three spaces of intervention; new critical histories of the geoweb that trace the relationship of geography and the state; a fuller political economy of the geoweb and its circulations of geographical knowledge; and legislative and encryption efforts that enable the geographic community to participate in public debate.
The High Demand for International Reserves in the Far East: What's Going On?

This paper explores econometric and theoretical interpretations for the relatively high demand for international reserves by countries in the Far East and the relatively low demand by some other developing countries. Using a sample of about 125 developing countries, we show that reserve holdings over the 1980-1996 period seem to be the predictable outcome of a few key factors, such as the size of international transactions, their volatility, the exchange-rate arrangement, and political considerations. The estimating equation also does a good job of predicting reserve holdings in Asia before the 1997 financial crisis. After the crisis, the estimating equation significantly under-predicts the reserve holdings of several key Far East countries, as one might expect from the Lucas Critique. This under-prediction is consistent with models explaining the demand for international reserves by developing countries. Specifically, we show that sovereign risk and costly tax collection to cover fiscal liabilities lead to a relatively large demand for international reserves. In the aftermath of a crisis, countries that have to deal with higher perceived sovereign risk and higher fiscal liabilities (both funded and unfunded) will opt to increase their demand for reserves. The models also help us understand why some developing countries do not hold large precautionary reserve balances in the aftermath of crises. Countries with high discount rates, political instability or political corruption find it optimal to hold much smaller precautionary balances. We also show that models that incorporate loss aversion predict a relatively large demand for international reserves. Hence, if a crisis increases the volatility of shocks and/or loss aversion, it will greatly increase in the demand for international reserves. Consequently, we conclude that the ‘puzzling’ pattern in international reserve holdings is reasonably explained by the extended models described in this paper.
The effects of SFAS 157 disclosures on investment decisions

Abstract This paper examines whether public bank managers change both the composition and classification of their investment portfolios after SFAS 157. We first show that non-agency mortgage-backed securities (MBSNA) are the asset class most likely to be measured using level 3 inputs, which are based on unobservable information. We then find that relative to a control sample of private banks, public banks altered their investment portfolios in a manner that reduced the percentage of MBSNA holdings for which SFAS 157 disclosures are required. Taken together, this evidence is consistent with public banks attempting to avoid disclosure of level 3 assets through changes in both asset composition and classification.
FORENSIC ECONOMICS: AN INTRODUCTION WITH SPECIAL EMPHASIS ON PRICE FIXING

This paper aims at explaining accepted methods of forensic analysis and how forensic economics is used in the context of competition-law enforcement. Illustrations are drawn from ancient and modern antitrust cases involving price-fixing allegations. The stated goal of antitrust laws of most nations is deterrence. Optimal deterrence requires that cartel penalties be based on multiples of economic injuries. Yet, antitrust authorities are typically reluctant to calculate fines on the basis of damages because of perceived analytical challenges or because the fact-finders lack needed economic education. However, reasonable estimates of damages can often be quickly prepared using simpler methods than econometric modeling. More often than not, alternative estimates of cartel overcharges tend to be mutually supportive. The reluctance of antitrust authorities to base fines on damages seems to indicate an abundance of caution.
Control-Alt-Incomplete? Using Technology to Assess "Digital Natives"

Law students matriculating today were “born digital.” As digital natives, they have never known a world without digital technology, and therefore, they think and process information differently than previous generations. Although law school student bodies have changed, law school assessment methods have remained static, with students nearly universally being evaluated entirely by one exam at the end of the course. Best Practices, the Carnegie Report, and more recently the ABA, have acknowledged that this system of evaluation is contrary to learning theory and that periodic assessment of student learning is crucial to improving the performance of both students and teachers. Nevertheless, change has yet to occur.It is time to change. Using technology to assess student learning is one way to begin effectuating this change. Digital Natives are comfortable with technology and expect to have it integrated into the curriculum. Moreover, incorporating technology as a means to assess student learning will help prepare future lawyers for the realities of law practice today. Technology also allows law professors to conduct meaningful assessments of large numbers of students more efficiently. This article therefore introduces several examples of how to use a number of today’s technologies - both inside the classroom and outside the classroom - in the hopes of initiating further exploration into effective means of using technology to assess student learning at the course level.
The Domain of Reflexive Law

In Regulating Intimacy: A New Legal Paradigm, Jean Cohen synthesizes liberal and egalitarian justifications for a right to sexual privacy. Cohen proposes that regulation of sexual privacy, where permissible, be accomplished through "reflexive law." This Review Essay expresses broad sympathy for Cohen's project, while suggesting an expansion. In Cohen's reflexive paradigm, the sovereign in its lawmaking capacity sets general standards that steer primary actors but simultaneously leave them with a substantial zone of freedom in which to engage in self-regulation. Although it permits substantial autonomy, Cohen's conception of reflexive law is essentially topdown. This Review Essay offers an amended account of reflexive law in which data drawn from experience at the relatively local level are continually refined and transmitted to the relatively central standard-setter, which uses the data continually to update the standards all must meet. This amended account is accordingly both top-down and bottom-up, and for that reason it may be particularly well-suited to contexts-such as regulation of issues touching on sexual privacy-where the simple announcement of a controversial legal norm would meet with substantial opposition.
Trade liberalization, wage inequality, and endogenously determined nontraded goods

Abstract We examine the boundary between traded and nontraded goods as a channel for trade to impact factor prices. In a two-country, two-factor, continuum-good model, tariffs generate a range of nontraded goods. A tariff reduction has a direct effect to expand a country’s import set and an indirect effect through terms of trade to expand its export set. We show that the export expansion can dominate the import expansion, raising the relative demand for the factor intensively used in production. The result is useful in explaining observed rising wage inequality in developing countries following trade liberalization.
GLOBAL BUSINESS CYCLES: CONVERGENCE OR DECOUPLING?*

We analyze the evolution of the degree of global cyclical interdependence over the period 1960‐2008. Using a dynamic factor model, we decompose macroeconomic fluctuations in output, consumption, and investment into a global factor, factors specific to country groups, and country-specific factors. We find that during 1985‐2008, there is some convergence of business cycle fluctuations among industrial economies and among emerging market economies. Surprisingly, there is a concomitant decline in the relative importance of the global factor. We conclude that there is evidence of business cycle convergence within each of these two groups of countries but divergence (or decoupling) between them.
Conventions, Constituent Assemblies, and Round Tables: Models, principles and elements of democratic constitution-making

The article presents the Round Table form, elsewhere post-sovereign multi-stage constitution making as an independent democratic type superior to the alternatives. It locates the form along with Convention and Constituent Assembly both in a comprehensive typology based on models of regime transformation, as well as historically. After making a set of normative arguments comparing the three forms, focusing on the issue legitimation, I make a case for the synthetic nature of the Round Table in relation to the two important democratic predecessors. Finally, I reluctantly admit the path-determined nature of the Round Table that strictly speaking seems relevant only 1) in the transitions from dictatorships, if 2) new forces do not have the power to accomplish revolutionary change. Nevertheless, I argue that the principles of the Round Table (inclusion, consensus, publicity, legality and veil of ignorance) are relevant to other paths, from the point of view of their legitimation. I further claim with reference to Iraq, Turkey and the European Union that elements of the Round Table can be adopted even under conditions of revolutionary change, as well as constitutional reform.
Can Composite Value Measures Enhance Portfolio Performance

There is considerable evidence that value stocks, which have low market multiples, earn higher long-term returns than growth stocks, which have high market multiples, but the relative efficiency of different value measures remains unclear. This research investigates whether composite value measures can be used to enhance the performance of value portfolios. It examines the relative efficiency of individual value measures and determines whether there is a significant value premium for a broad cross-section of tradable U.S. stocks.
Cooperation Without Enforcement? A Comparative Analysis of Litigation and Online Reputation as Quality Assurance Mechanisms

Commerce depends on buyers and sellers fulfilling their contractual obligations; mechanisms inducing such performance are essential to well-functioning markets. Internet-enabled reputation mechanisms that collect and disseminate consumer feedback have emerged as prominent means for inducing seller performance in online and offline markets. This paper compares the ability of reputation and more traditional litigation-like mechanisms for dispute resolution to induce efficient economic outcomes. We use a game-theoretic formulation and derive results for their relative efficiency and effectiveness individually or as complements. We find that the popular view of reputation as an efficient and relatively costless way to induce seller effort under all circumstances is incorrect; reputation is less efficient than litigation in inducing any given level of effort. Thus, reputation improves efficiency only in settings where the high cost of litigation, insufficient damage levels, or low court accuracy induce suboptimal effort or cause market failure. When adverse selection is important, reputation helps reveal the true types of market participants, which may offset its higher cost of inducing effort. Finally, adding reputation to existing litigation mechanisms increases seller effort and may require adjusting damage awards to avoid inducing excessive effort that reduces economic efficiency. This paper was accepted by Lorin Hitt, information systems.
A theory of voluntary disclosure and cost of capital

This paper explores the links between firms’ voluntary disclosures and their cost of capital. Existing studies investigate the relation between mandatory disclosures and cost of capital and find no cross-sectional effect but a negative association in time-series. In this paper, I find that when disclosure is voluntary firms that disclose their information have a lower cost of capital than firms that do not disclose, but the association between voluntary disclosure and cost of capital for disclosing and nondisclosing firms is positive in aggregate. I further examine whether reductions in cost of capital indicate improved risk-sharing or investment efficiency. I also find that high (low) disclosure frictions lead to overinvestment (underinvestment) relative to first-best. As average cost of capital proxies for risk-sharing but not investment efficiency, the relation between cost of capital and ex ante efficiency may be ambiguous and often irrelevant.
Strategic Entry Deterrence and the Behavior of Pharmaceutical Incumbents Prior to Patent Expiration

This paper develops a new approach to testing for strategic entry deterrence and applies it to the behavior of pharmaceutical incum- bents before patent expiration. It examines a cross section of mar - kets, determining whether behavior is nonmonotonic in market size. Under some conditions, investment levels will be monotone in market size if firms do not invest to deter entry. Strategic investments to deter entry, however, may result in nonmonotonic investment because they are unnecessary in small markets, and impossible in large ones. Consistent with an entry-deterrence motivation is the finding that incumbents in medium-sized markets advertise less prior to patent expiration. (JEL D92, G31, L11, L21, L65)
Creating Social Contagion Through Viral Product Design: A Randomized Trial of Peer Influence in Networks

We examine how firms can create word-of-mouth peer influence and social contagion by designing viral features into their products and marketing campaigns. To econometrically identify the effectiveness of different viral features in creating social contagion, we designed and conducted a randomized field experiment involving the 1.4 million friends of 9,687 experimental users on Facebook.com. We find that viral features generate econometrically identifiable peer influence and social contagion effects. More surprisingly, we find that passive-broadcast viral features generate a 246% increase in peer influence and social contagion, whereas adding active-personalized viral features generate only an additional 98% increase. Although active-personalized viral messages are more effective in encouraging adoption per message and are correlated with more user engagement and sustained product use, passive-broadcast messaging is used more often, generating more total peer adoption in the network. Our work provides a model for how randomized trials can identify peer influence in social networks. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors.
Unusual News Flow and the Cross Section of Stock Returns

We document that stocks that experience sudden increases in idiosyncratic volatility underperform otherwise similar stocks in the future, and we propose that this phenomenon can be explained by the Miller conjecture [Miller E 1977 Risk, uncertainty, and divergence of opinion. J. Finance 324:1151-1168]. We show that volatility shocks can be traced to unusual firm-level news flow, which temporarily increases the level of investor disagreement about the firm value. At the same time, volatility shocks pose a barrier to short selling, preventing pessimistic investors from expressing their views. In the presence of divergent opinions and short-selling constraints, prices initially reflect optimistic views but adjust downward in the future as investors' opinions converge. The online appendix is available at https://doi.org/10.1287/mnsc.2017.2726 . This paper was accepted by Wei Xiong, finance.
SCALING THE DIGITAL DIVIDE: HOME COMPUTER TECHNOLOGY AND STUDENT ACHIEVEMENT

Does differential access to computer technology at home compound the educational disparities between rich and poor? Would a program of government provision of computers to early secondary school students reduce these disparities? We use administrative data on North Carolina public school students to corroborate earlier surveys that document broad racial and socioeconomic gaps in home computer access and use. Using within-student variation in home computer access, and across-ZIP code variation in the timing of the introduction of high-speed Internet service, we also demonstrate that the introduction of home computer technology is associated with modest, but statistically significant and persistent negative impacts on student math and reading test scores. Further evidence suggests that providing universal access to home computers and high-speed Internet access would broaden, rather than narrow, math and reading achievement gaps. (JEL I2, J24)
Berry phase and anomalous velocity of Weyl fermions and Maxwell photons

We consider two systems of wave equations whose wave packet solutions have trajectories that are altered by the “anomalous velocity” effect of a Berry curvature. The first is the matrix Weyl equation describing cyclotron motion of a charged massless fermion. The second is Maxwell equations for the whispering-gallery modes of light in a cylindrical waveguide. In the case of the massless fermion, the anomalous velocity is obscured by the contribution from the magnetic moment. In the whispering-gallery modes, the anomalous velocity causes the circumferential light ray to creep up the cylinder at the rate of one wavelength per orbit, and can be identified as a continuous version of the Imbert–Federov effect.
"Knock and Talk" and the Fourth Amendment

One of the surprising things about the Republican Supreme Court’s criminal procedure jurisprudence is its concern for the privacy of the home. While the Court over thirty-five-plus years of Republican domination has been generally pro-police when it comes to outdoor searches as well as interrogations, it has been rather steadfast in protecting the home from warrantless intrusions by police. Even such minor intrusions into the home as monitoring a beeper located inside a drum of chemicals and measuring the heat emissions of a house from outside the home have required a search warrant. Likewise, arrests made inside a dwelling must be performed pursuant to an arrest warrant. But there is a large swath of police activity that intrudes into dwellings that has been widely allowed by the courts and that often renders the search and arrest warrant requirements nugatory. This is the “knock and talk” technique. Under “knock and talk,” police go to people’s residences, with or without probable cause, and knock on the door to obtain plain views of the interior of the house, to question the residents, to seek consent to search, and/or to arrest without a warrant, often based on what they discover during the “knock and talk.” When combined with such other exceptions to the warrant requirement as “plain view,” consent, and search incident to arrest, “knock and talk” is a powerful investigative technique. This Article explains how “knock and talk,” as approved by numerous United States courts of appeal as well as many state courts, has severely limited the Fourth Amendment protection afforded to homes, despite the Supreme Court’s stance that homes are heavily protected. Indeed, even though considerable disagreement exists among lower courts as to the extent of the “knock and talk” doctrine, it has never been directly discussed by the Court. However, what was essentially a “knock and talk” was considered and disapproved of in the often quoted, but no longer fully adhered to, 1948 case of Johnson v. United States. This Article argues that the lower courts, as well as the Supreme Court, should return to the principles that Johnson announced. It proposes three possible solutions to the intrusiveness that the “knock and talk” technique imposes on the home in descending order of severity. The first is to ban “knock and talk” entirely when a particular home or suspect is the focus of police investigation. The second is to allow
CAREGIVING AND WORK: THE RELATIONSHIP BETWEEN LABOR MARKET ATTACHMENT AND PARENTAL CAREGIVING

There has been much concern over the provision of long-term care and the stresses it imposes on the family members who provide that care. However, despite the importance of this issue, it has been difficult to assess a causal relationship between caregiving and work. A chief concern is that those with weaker attachments to the labor force may be more willing to provide care—inducing a negative correlation when caregiving itself does not negatively affect employment. In this study we draw on 20 years of data from the Health and Retirement Study to examine anew the relationship between parental caregiving and work. We use two alternative identification strategies: First, we exploit the multiple observations per person existing in our data to estimate a fixed effects model for the relationship between caregiving and work. Second, we use unique data from the Social Security Administration on earnings histories to control for a woman’s labor market behavior long before the potential need to provide care. We find evidence that caregivers have at least a strong, and by some measures a stronger, relationship to the labor market than non-caregivers. Rather than labor force attachment, the provision of care appears to be driven primarily by parental need and by the availability of alternative caregivers, particularly sisters. However, we also find that caregiving has negative long-term effects on employment and earnings and can thus be detrimental to the financial well-being of caregivers.
Failed States, or the State as Failure?

This essay seeks to challenge a basic assumption of international law and policy, arguing that the existing state-based international legal framework stands in the way of developing effective responses to state failure. It offers an alternative theoretical framework designed to spark debate about better legal and policy responses to failed states. Although the essay uses failed states as a lens to focus its arguments, it also has broad implications for how we think about sovereignty, the evolving global order, and the place of states within it. State failure - as exemplified by the former Yugoslavia, Sierra Leone, Afghanistan, etc. - causes a wide range of humanitarian, legal, and security problems. Unsurprisingly, given the state-centric international legal system, responses to state failure tend to focus on restoring failed states to the status of successful states, through a range of short and long-term nation building efforts. This essay suggests that this a misguided approach, which in some cases may do as much harm as good. In large part, this is because most failed states were never successful states to begin with. Indeed, as the essay describes, the state itself is a recent and historically contingent development, as is an international legal system premised on state sovereignty. Both states and the state-centric international system have poor track records in creating stability or democratic accountability. This essay explores the implications of this for both the international legal order and for approaches to failed states. It concludes that although the existing state system is likely to survive for some time to come, despite the challenges of globalization, not all states will or should survive in their current form. The populations of many failed states might benefit more from living indefinitely in a non-state society than in a dysfunctional state, artificially sustained by international efforts. Long-term non-state arrangements could range from international trusteeships to affiliations with willing third-party states to special status within regional bodies, and alternative accountability mechanisms could be developed to overcome democratic deficits associated with the lack of formal legal statehood as currently understood by international law. Although approaches related to those urged in this essay are beginning to be discussed by international relations and political science scholars, so far there has been little focus on these issues in the legal literature. The essay is designed to surprise readers into considering radical and novel approaches to the challenge of state failure.
Patents and the diffusion of technical information

Abstract Does the disclosure requirement of the patent system encourage the diffusion of inventions? This paper builds a simple model where firms choose between patents and trade secrecy to protect inventions. Diffusion is not necessarily more likely with a patent system nor is the “market for technology” necessarily greater.
Multinationals and corporate social responsibility in host countries: Does distance matter?

Prior studies have found that foreign affiliates of multinational enterprises (MNEs) suffer from liability of foreignness (LOF). Foreign affiliates may be able to improve their social legitimacy and overcome LOF by demonstrating social commitment to host-country constituents through corporate social responsibility (CSR). If LOF is positively related to the distance between the home and host countries, and CSR activities confer social legitimacy benefits on foreign affiliates, we should expect CSR activities and distance to be positively related. However, we argue that, despite this potential motivation, foreign affiliates from more distant home countries are in fact less likely to engage in host-country CSR. Our argument focuses on the ways in which distance affects the MNE's willingness and ability to engage in CSR abroad. We also predict that host-country CSR reputation negatively moderates this relationship. Using Community Reinvestment Act data for foreign bank affiliates from 32 countries in the United States over 1990–2007, we find strong support for our hypotheses. The paper enriches our understanding of CSR practices in MNEs, and of when and how MNEs try to overcome legitimacy issues in host countries.
Best Practices for Computational Science: Software Infrastructure and Environments for Reproducible and Extensible Research

The goal of this article is to coalesce a discussion around best practices for scholarly research that utilizes computational methods, by providing a formalized set of best practice recommendations to guide computational scientists and other stakeholders wishing to disseminate reproducible research, facilitate innovation by enabling data and code re-use, and enable broader communication of the output of computational scientific research. Scholarly dissemination and communication standards are changing to reflect the increasingly computational nature of scholarly research, primarily to include the sharing of the data and code associated with published results. We also present these Best Practices as a living, evolving, and changing document at http://wiki.stodden.net/Best_Practices .
Cap-and-Trade, Emissions Taxes, and Innovation

Executive Summary Emissions taxes and carbon caps can both lead to efficient production of energy, in the sense of controlling carbon emissions to the extent that is efficient with existing technologies. However, the regulatory policy has a second objective, which is to create incentives to develop lower-carbon technologies. With both objectives in mind, does one policy dominate the other? The answer depends partly on whether the regulated price of energy is in the elastic or inelastic part of the demand curve. It also depends on the size of the improvement. Under tax regulation, an innovator can always profit from diffusing the clean technology to all producers. This is not true under a carbon cap because diffusion expands energy supply, reducing the price of energy and of allowances and eroding the producers’ willingness to pay for licenses. Under cap-and-trade regulation, the regulator has less ability to control the price of energy while ensuring productive efficiency (full diffusion). Because there i...
A neighborly welcome? Charter school entrance and public school competition on the capital margin

In 1999, the Utah State Legislature allowed charter schools to enter and be administered under the broad oversight of school districts. The structure of the Utah Charter School provides a natural experiment to study a unique way that traditional public schools compete against new charter schools. Using data from the 1992–2012 waves of the Common Core of Data, we estimated fixed effect models to measure the increase in capital expenditures by traditional public schools when faced with competition by new charter schools. We find that total capital outlay and spending on improving existing structures increases with charter competition, but new construction and instructional spending does not increase at a statistically significant level.