New Economics Papers
on Law and Economics
Issue of 2006‒08‒12
three papers chosen by
Jeong-Joon Lee, Towson University


  1. Evaluating the push for tougher, more targeted policing in the Netherlands; evidence from a citizen survey. By Ben Vollaard
  2. Raising Economic Performance by Fostering Product Market Competition in Germany By Andrés Fuentes; Eckhard Wurzel; Andreas Reindl
  3. Complementarity and Custom in Contract Violation By John S. Earle; Klara Sabirinova Peter

  1. By: Ben Vollaard
    Abstract: In this study, we estimate the effects of a tougher, more targeted police response to criminal and disorderly behaviour ('proactive policing'). We use a citizen survey providing unique data on hard-to-observe dimensions of police work for every single municipality in the Netherlands. We relate variation in local policing strategies to individual data on victimisation of crime and experience of disorder and fear of crime over the period 1993-2001. The sample includes some 370,000 residents randomly selected from the Dutch population. We control for individual background characteristics and fixed municipality characteristics. We find evidence that stricter law enforcement is effective in reducing disorder, fear of crime, violent crime and property crime. Concentrating visible police presence at 'hot spots' is effective in combating disorder, fear of crime, and property crime. As a result of proactive policing during the period 2003-2005, crime and disorder went down substantially. Fear of crime has been reduced as well.
    Keywords: police; effectiveness; proactive policing; disorder policing; hot spots policing
    JEL: K4
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:cpb:docmnt:119&r=law
  2. By: Andrés Fuentes; Eckhard Wurzel; Andreas Reindl
    Abstract: Much scope remains to make regulation of product markets more conducive to competition ? notwithstanding progress in recent years ? with substantial benefits for consumer welfare, productivity and employment. While the general competition legislation and enforcement framework is mostly effective, measures need to be taken to reduce administrative burdens on entrepreneurship and reduce the involvement of the government in business sector activities, notably through accelerated privatisation. Policies favouring small enterprises need to be revised, with a view to fully exposing them to competition and avoiding disincentives for small firms to grow. Substantial regulatory challenges exist in specific sectors, notably in the energy and railway industries where non-discriminatory access of market entrants to networks needs to be improved. Environmental objectives in energy market regulation could be achieved at lower cost. In the telecommunications industry, competition in the local loop can be strengthened. Regulation of the liberal professions is among the most restrictive in the OECD. Entry barriers need to be eliminated in crafts. and restrictions on large-scale retailing development could be eased. This paper relates to the 2006 Economic Survey of Germany (www.oecd.org/eco/surveys/germany). <P>Améliorer la performance économique en stimulant la concurrence sur les marchés de produits en Allemagne <BR>En dépit des progrès accomplis ces dernières années, beaucoup reste à faire pour rendre la réglementation des marchés de produits plus propice à la concurrence, ce qui induira de substantiels avantages en termes de bien-être du consommateur, de productivité et d'emploi. Le droit commun de la concurrence et son cadre d'application sont dans l'ensemble efficaces, mais il faut alléger les charges administratives qui pèsent sur l'entrepreneuriat et réduire l'intervention de l'État dans les activités du secteur des entreprises, notamment par une privatisation accélérée. Il convient de réviser les dispositifs favorables aux petites entreprises, pour les exposer pleinement à la concurrence et éviter de les décourager de croître. De sérieux problèmes de réglementation persistent dans certains secteurs, notamment l'énergie et les chemins de fer, où l'accès non discriminatoire des entrants aux réseaux demande à être amélioré. Les objectifs environnementaux de la réglementation des marchés de l'énergie pourraient être réalisés à moindre coût. Dans l'industrie des télécommunications, la concurrence sur la boucle locale peut être renforcée. La réglementation des professions libérales est parmi les plus restrictives de la zone OCDE. Dans le secteur de l'artisanat, les obstacles à l'entrée doivent être supprimés, et il convient d'assouplir les restrictions qui limitent le développement des magasins de grande surface. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de l’Allemagne 2006 (www.oecd.org/eco/etudes/allemagne).
    Keywords: network industries, industrie de réseau, competition, privatisation, Germany, Allemagne, concurrence, privatisation, competition law, productivity and growth, droit de la concurrence, productivité et croissance, regulatory policies, politique de réglementation
    JEL: K21 K23 L16 L40 L43 L51 L53 O52 Q3
    Date: 2006–08–04
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:507-en&r=law
  3. By: John S. Earle (W.E. Upjohn Institute for Employment Research and Central European University); Klara Sabirinova Peter (Georgia State University, CEPR, and IZA)
    Abstract: We analyze a model of wage delay in which strategic complementarity arises because each employer's costs of violating its contracts decrease with the arrears in its labor market. The model is estimated on panel data for workers and firms in Russia, facilitating identification through fixed effects for employees, employers, and local labor markets, and instrumental variables based on policy interventions. The estimated reaction function displays strongly positive neighborhood effects, and the estimated feedback loops – worker quits, effort, strikes, and legal penalties – imply that costs of wage delays are attenuated by neighborhood arrears. We also study a nonlinear case with two stable equilibria: a punctual payment and a late payment equilibrium. The estimates imply that the theoretical conditions for multiple equilibria under symmetric labor market competition are satisfied in our data.
    Keywords: Earle, Sabirinova, contract violation, wage arrears, social custom, strategic complementarity, neighborhood effect, social interactions, multiple equilibria, network externality, transition, Russia"
    JEL: D21 G34 J23 J31 L33 P23 B52 J30 K42 L14 O17 P31 P37
    URL: http://d.repec.org/n?u=RePEc:upj:weupjo:06-129&r=law

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