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on Law and Economics |
| By: | L. Leoncini; F. Rentocchini |
| Abstract: | he debate about the effectiveness of the counteracting policies against the supply of drugs, in particular of cocaine, is very lively and intense. Indeed, since many opinions are based on certain measures rather than others, the construction of reliable indicators is one of the preconditions for a correct and concerted assessment of drug supply. The lack of reliable data on drug provision derives, on the one side, from the objective difficulties encountered in assessing the quantitative elements of drug production and drug trafficking due to its illegal nature, and, on the other side, from the lack of a standard methodological approach to the issue. This paper tries to contribute to the topic by proposing a new dataset, based on a completely new approach to the problem of measuring drug supply. We put forward a unique dataset covering cocaine related seizures in Colombia for the whole of year 2008. Data have been collected on a daily basis from the websites of the main organizations fighting against drug traffickers (Army, Air Force, National Police, Departamento Administrativo de Seguridad, Armada Nacional, Fiscalia), detailing each single seizure of laboratories for the production of both basic paste and cocaine hydrochloride. By means of this dataset, we offer some accounts of the main numbers on drug supply and on drug seizures, suggesting some policy options, and arriving to an estimate of cocaine production. |
| JEL: | K42 C81 D78 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:693&r=law |
| By: | Ojo, Marianne |
| Abstract: | As well as addressing the Basel Committee's proposals to strengthen global capital and liquidity regulations, this paper also considers several reasons why information disclosure should be encouraged. These include the fact that imperfect information is considered to be a cause of market failure which “reduces the maximisation potential of regulatory competition”, and also because disclosure requirements would contribute to the reduction of risks which could be generated when granting reduced capital level rewards to banks who may have poor management systems. Furthermore it draws attention to the need for greater measures aimed at consolidating regulation within (and also extending regulation to) the securities markets – given the fact that „the globalisation of financial markets has made it possible for investors and capital seeking companies to switch to lightly regulated or completely unregulated markets.“ |
| Keywords: | capital; liquidity; regulations; bank; Basel II; risks; disclosure |
| JEL: | K2 G2 D8 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21194&r=law |
| By: | Bhatia, Jai |
| Abstract: | The venture capital (VC) industry supports innovation in an economy, and has seen much success over the last few years. However, with the inherent risk in any start-up business, the venture capitalist is bound to see some failures. This paper explores the effects of corporate and personal insolvency laws on financially distressed VC funded firms. It also compares the contract driven bankruptcy system to the court driven system, and their implications for failed VC funded firms. This paper relies upon qualitative analysis and draws upon interviews with academic experts, industry practitioners and secondary data. In the light of corporate insolvency, the research concludes that entrepreneurial firms are often ‘wound up’ rather than put into the bankruptcy system for liquidation/ reorganization because the realized value from the small firms often do not cover the cost of the bankruptcy process. Consequently, it is difficult to ascertain the impact of corporate insolvency laws on small businesses. On the contrary, it has been observed that the severity of the personal insolvency law does not affect venture capital financed entrepreneurs. The venture capitalists provide equity finance and the entrepreneurs do not need to risk their personal assets for collateral to acquire bank finance. The comparison between the US and UK systems of bankruptcy revealed that for small entrepreneurial firms, both systems are convergent to a greater degree than they are for larger firms i.e., the smaller the firm the more similar both the systems seem in relation to efficiency and the ability to salvage value from financially distressed firms. |
| Keywords: | Insolvency Law; Bankruptcy; Venture Capital; Entrepreneurship; Administration; Liquidation; Personal insolvency; Corporate Insolvency |
| JEL: | K35 G33 G24 M13 |
| Date: | 2009–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21346&r=law |
| By: | Yamamura, Eiji |
| Abstract: | Japan’s new bar examination has been administered since 2006. This paper attempts to analyze how professors selected as members of the committee (The Justice Ministry's committee of the new national bar examination) influence the results of the examination. I use a panel data set to control for unobservable characteristics of universities when the numbers of successful candidate are examined. The major findings are: (1) From 2006 to 2007, number of professors on the committee affected the number of successful candidates. Furthermore, committee members specializing in compulsory common subjects had a significant effect but those specializing in a selective subject had no effect. (2) From 2008 to 2009, neither type of committee member influenced the number of successful candidates. The unexpected outcomes in 2006 and 2007 are considered to be the result of shortcomings in the new bar examination. This is in line with concept that high-powered incentive schemes are likely to induce behavior distortions (Jacob and Levitt, 2003). In 2008 and 2009, it is thought that social pressure against such unexpected behavior deterred such unfair behavior. |
| Keywords: | New bar examination; Behavior distortion; Fairness |
| JEL: | K40 K23 I28 |
| Date: | 2010–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21371&r=law |