New Economics Papers
on Law and Economics
Issue of 2006‒04‒01
seven papers chosen by
Jeong-Joon Lee, Towson University

  1. Energy Regulation and Legislative Development in the State Duma of Russia: A Spatial Analysis of Roll Call Votes with the Optimal Classification Model, Russia 1994-2003 By Theocharis N. Grigoriadis; Benno Torgler
  2. Should You Turn Yourself In? The Consequences of Self-Policing By Sarah L. Stafford
  3. Structural Remedies and Abuse of Dominant Position By Tajana,Alessandro
  4. Regulatory harmonization and the development of private equity markets By Cumming,Douglas; Johan,Sofia
  5. The Miracle as a Randomization Device A Lesson from Richard Wagner's Romantic Opera Tannhaeuser und der Saengerkrieg auf Wartburg By Harmgart,Heike; Huck,Steffen; Mueller,Wieland
  6. Understanding the determinants of crime By Ayse Imrohoroglu; Antonio Merlo; Peter Rupert
  7. Ethical issues relating to the use of the Internet and the implications for managers and business practice By Mihai Orzan

  1. By: Theocharis N. Grigoriadis; Benno Torgler
    Abstract: This paper investigates the role of the State Duma of Russia in energy regulation between 1994 and 2003. We applying Poole’s optimal classification model of roll call votes using an ordered probit model to show impact of partisan, bureaucratic, social and economic determinants on energy law reform in the first decade of Russia’s democratic transition. Our findings suggest that reforms strongly depend on negotiations, compromises and interest equilibrations. The cohesion and accountability of Russian political parties cannot be explained in terms of ideology; the traditional Left-Right axis does not hold in Russian legislative politics. Thus, our results suggest that Russia’s executive federalism and the personal interests of powerful parliamentary actors have the lead in developing competitive market structures in oil, gas and electricity markets. The paradoxical conclusion is that in this turbulent institutional setting State Duma functions as a de facto regulator by contributing to economic transparency and advancing energy law reform under conditions of democratic representation and political competition.
    Keywords: energy regulation; energy roll law reform; roll call votes; legislative politics; State Duma; Russia
    JEL: Q40 D72 K23 P27 P37 P31 R11
    Date: 2006–03
  2. By: Sarah L. Stafford (Department of Economics, College of William and Mary)
    Abstract: Facilities that self-police under the Environmental Protection AgencyÕs Audit Policy are eligible for reduced penalties on disclosed violations. This paper investigates whether self-policing has additional consequences, in particular whether self-policing reduces future enforcement activity. Using data on U.S. hazardous waste enforcement and disclosures, I find that facilities that self-police are rewarded with a lower probability of inspection in the future, although facilities with good compliance records may receive a smaller benefit than facilities with poor records. Additionally, facilities that are inspected frequently are more likely to disclose than facilities that face a low probability of inspection, perhaps because they have more to gain from decreasing future enforcement efforts.
    Keywords: Self-Policing, Enforcement, Targeting, Compliance, Hazardous Waste
    JEL: K32 K42 Q52 Q58
    Date: 2006–02–23
  3. By: Tajana,Alessandro (TILEC (Tilburg Law and Economics Center))
    Abstract: Regulation 1/2003 empowers the European Commission to adopt remedies of a structural nature in order to bring an infringement of the rules of competition to an end. This paper first describes the legal conditions that have to be fulfilled for a structural remedy to be imposed under Art. 82. These conditions are strict: the effectiveness, necessity, and proportionality of a structural remedy function as a straitjacket and will rarely allow the adoption of structural remedies. The second issue addressed is whether economic analysis and reasoning should be taken into consideration in the decision to adopt a structural remedy. Indeed, a potential conflict may arise between the outcome of a legal test , based on the effectiveness of the remedy, and the economic test , mainly focused on the efficiency of a remedy. In analysing the efficiency of a remedy a three-stage test is suggested. This analysis leads to the suggestion that the Commission, when faced with the option of which remedy to choose, should take into account economic reasoning as much as possible. However, the attempt to reconcile the two tests, the legal and the economic one, inevitably brings to the conclusion that structural remedies have a residual nature and will be adopted only in particular circumstances
    Keywords: EU law;competition;antitrust;abuse of dominant position;monopolisation; structural remedies;behavioural remedies
    JEL: K21 L41
    Date: 2005
  4. By: Cumming,Douglas; Johan,Sofia (TILEC (Tilburg Law and Economics Center))
    Abstract: This paper introduces a new dataset from 100 Dutch institutional investors domestic and international asset private equity allocations. The data indicate that the comparative dearth of regulations of private equity funds impedes institutional investor participation in private equity funds, particularly in relation to the lack of transparency. The data further indicate that regulatory harmonization of institutional investors has increased Dutch institutional investor allocations to domestic and international private equity funds, particularly via the harmonization from the International Financial Reporting Standards (regulation of reporting standards and transparency), the Financieel Toetsingkader (regulation of portfolio management standards such as of matching assets and liabilities), and Basel II (regulation of risk management and disclosure standards)
    Keywords: Private Equity;Law and Finance
    JEL: G23 G24 G28 K22 K34
    Date: 2006
  5. By: Harmgart,Heike; Huck,Steffen; Mueller,Wieland (TILEC (Tilburg Law and Economics Center))
    Abstract: In this paper we provide textual evidence on the sophistication of medieval deterrence strategies. Drawing on one of the great opera librettos based on medieval sources, Wagner s Tannhäuser, we shall illustrate the use of optimal randomization strategies that can be derived by applying notions of dominance or trembling-hand perfection. Particular attention is paid to the employed randomization device
    Keywords: crime and punishment;sins and absolution;Richard Wagner;Tannhaeuser; trembling-hand perfection;optimal randomization
    JEL: B11 C72 K14 Z11 Z12
    Date: 2006
  6. By: Ayse Imrohoroglu; Antonio Merlo; Peter Rupert
    Abstract: In this paper, we use an overlapping generations model where individuals are allowed to engage in both legitimate market activities and criminal behavior in order to assess the role of certain factors on the property crime rate. In particular, we investigate if any of the following could be capable of generating the large differences in crime rates that are observed across countries: differences in the unemployment rate, the fraction of low-human-capital individuals in an economy, the probability of apprehension, the duration of jail sentences, and income inequality. We find that small differences in the probability of apprehension and in income inequality can generate quantitatively significant differences in the crime rates across similar environments.
    Keywords: Crime
    Date: 2006
  7. By: Mihai Orzan (School of Marketing, Academy of Economic Studies)
    Abstract: When we address the topic of ethical issues on the Internet we are generally referring at two different matters: privacy and intellectual property. Each has been examined extensively in the last five years, since the Internet explosive intrusion in everyday life activities, each has an important number of sub fields that require special attention from managers and other business professionals. The purpose of this paper is to make a short presentation of most relevant developments pertaining Internet ethical issues in direct connection with the business world.
    Keywords: ethics, etica, libel, trademark, patent, defamation, privacy, spam, Internet, personal information
    JEL: I20 K20
    Date: 2001–12

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