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on Law and Economics |
| By: | Friedrich Schneider; Tilman Brück; Daniel Meierrieks |
| Abstract: | This survey provides an in-depth analysis of existing research on the economic analysis of terrorism and counter-terrorist measures. First the existing evidence on the causes of terrorism is analyzed, then we consider the evidence of the consequences of terrorism and we demonstrate why it is important to regarding of the issue of counter-terrorism policy. Moreover the survey presents the existing knowledge on the interrelation between the economy and the issue of security and it incorporates analysis the level of knowledge about the causal chains between security and the economy. Also it focuses on perspective and methodologies from the discipline of economics but also refers to research from related disciplines (sociology, political science). It also assembles the knowledge on the impact of terrorism on the economy as reflected in macro-economic variables and its impact on specific sectors. Furthermore it assesses how potential an actual terrorist event determine consumer and producer behaviour, public policy, as well as terrorist responses to these policies. Finally a European perspective on the terrorism security annexes is discussed and here we analyze the causes of terrorism in Europe. |
| Keywords: | risk, insecurity, survey, terrorism, counter-terrorism, security economics |
| JEL: | K42 H56 O17 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diweos:diweos45&r=law |
| By: | Friedrich Schneider; Tilman Brück; Daniel Meierrieks |
| Abstract: | This survey provides an in-depth analysis of existing research on the economic analysis of terrorism and counter-terrorist measures. First the existing evidence on the causes of terrorism is analyzed, then we consider the evidence of the consequences of terrorism and we demonstrate why it is important to regarding of the issue of counter-terrorism policy. Moreover the survey presents the existing knowledge on the interrelation between the economy and the issue of security and it incorporates analysis the level of knowledge about the causal chains between security and the economy. Also it focuses on perspective and methodologies from the discipline of economics but also refers to research from related disciplines (sociology, political science). It also assembles the knowledge on the impact of terrorism on the economy as reflected in macro-economic variables and its impact on specific sectors. Furthermore it assesses how potential an actual terrorist event determine consumer and producer behaviour, public policy, as well as terrorist responses to these policies. Finally a European perspective on the terrorism security annexes is discussed and here we analyze the causes of terrorism in Europe. |
| Keywords: | risk, insecurity, survey, terrorism, counter-terrorism, security economics |
| JEL: | K42 H56 O17 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diweos:diweos44&r=law |
| By: | Olaf J. de Groot; Matthew D. Rablen; Anja Shortland |
| Abstract: | We present a theoretical model postulating that the relationship between crime and governance is "hump-shaped" rather than linearly decreasing. State failure, anarchy and a lack of infrastructure are not conducive for the establishment of any business. This includes illegal businesses, as criminals need protection and markets to convert loot into consumables. At the bottom end of the spectrum, therefore, both legal business and criminal gangs benefit from improved governance, especially when this is delivered informally. With significant improvements in formal governance criminal activities decline. We use data from the International Maritime Bureau to create a new dataset on piracy and find strong and consistent support for this non-linear relationship. The occurrence, persistence and intensity of small-scale maritime crime are well approximated by a quadratic relationship with governance quality. Organised crime benefits from corrupt yet effective bureaucrats, and informally governed areas within countries. |
| Keywords: | Governance, Crime, Piracy, Informal Institutions, Law enforcement |
| JEL: | K42 P48 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diweos:diweos46&r=law |
| By: | Anja Shortland; Marc Vothknecht |
| Abstract: | This paper evaluates the effectiveness of the international naval mission in the Gulf of Aden from 2008-2010, both in terms of its counter-piracy and its counter-terrorism objectives. We draw on arguments developed in the literature of law and economics, detailed statistical analyses and a large number of in depth interviews. Counter-piracy operations are a qualified success: their main effects are the stabilisation of attacks at a high level and the substitution between the relatively well protected transit corridor in the Gulf of Aden and the open sea. However, the counter-piracy measures appear to deter pirates from forming alliances with Islamist movements and may therefore make a major contribution to international security. |
| Keywords: | Piracy, Somalia, counter-terrorism, law and economics, deterrence, naval intervention |
| JEL: | K42 O17 F19 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diweos:diweos47&r=law |
| By: | Paul Hallwood (University of Connecticut); Thomas J. Miceli (University of Connecticut) |
| Abstract: | Modern-day piracy on the high seas once again poses a serious threat to international shipping. This paper develops an economic of model of piracy that emphasizes the strategic interaction between pirates (offenders) and shippers (victims), a factor not previously studied in the law enforcement literature. A key implication of the model is that greater enforcement efforts will not necessarily result in less activity by pirates. Optimal enforcement policies are complicated by the need for international cooperation in the apprehension and prosecution of pirates. Free riding and other problems therefore impede the effectiveness of current international laws against piracy. |
| Keywords: | International law, law enforcement, piracy |
| JEL: | K14 K33 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2011-09&r=law |
| By: | Leheyda, Nina; Beschorner, Patrick; Hüschelrath, Kai |
| Abstract: | In 2002, the Swiss Competition Commission (COMCO) introduced a Notice on the Competitive Treatment of Vertical Restraints in Automobile Trade ('Car Notice'). The objective of the Car Notice has been to strengthen competition in the Swiss car market, in particular by avoiding price-fixing practices and market foreclosure and stimulating intrabrand competition in the market for new car sales and competition in the service market. Based on a survey conducted among Swiss car market players, we find that the Car Notice only had a slight impact on competition in the Swiss car market. Although some changes have been identified, they typically cannot solely be explained by the impact of the Car Notice but rather result from general market developments that have led to stronger competition in Switzerland. -- |
| Keywords: | vertical agreements,automobile market,multibranding,intrabrand competition,interbrand competition,ex-post evaluation of competition policy |
| JEL: | K21 L42 L62 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11034&r=law |
| By: | Leheyda, Nina; Beschorner, Patrick; Hüschelrath, Kai |
| Abstract: | The paper studies the effects of the Pfizer and Pharmacia (2003) merger on competition in the Swiss pharmaceutical market and compares the assessment of the Swiss Competition Commission (COMCO) with the post-merger market developments. We find that the merger has had a miniscule impact on the Swiss pharmaceutical market. This has primarily to do with the fact that the product portfolios of both companies have shown no or only slight overlaps. In both cases of potential anticompetitive effects, the companies successfully proposed to divest some of their assets in order to prevent a further strengthening of their dominant position. The remedies included products in the development phase which were not available on the market at the time of the decision. In other markets in which either an overlapping of businesses of both companies existed or in which one of the merging entities held a dominant market position, no significant effects of the merger were noticed. This might have to do with both, existing price regulation in the Swiss drug industry and changes in Pfizer's product portfolio following the merger. Furthermore, with respect to other potentially interesting market characteristics such as investment behaviour, R&D, sales or employment, available data on global company level does not allow an isolation of the possible effects of the merger. -- |
| Keywords: | mergers,ex-post evaluation,pharmaceutical markets |
| JEL: | K21 L42 L62 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11035&r=law |
| By: | Fossen, Frank M. |
| Abstract: | A personal bankruptcy law that allows for a 'fresh start' after bankruptcy reduces the individual risk involved in entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy, lenders may charge higher interest rates or ration credit supply, which can hamper entrepreneurship. Both aspects of a more forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and tests the hypotheses derived by exploiting the introduction of a 'fresh start' policy in Germany in 1999 as a natural experiment, based on representative household panel data. The results indicate that the insurance effect of a more forgiving personal bankruptcy law exceeds the interest effect and on balance encourages less wealthy individuals to enter into entrepreneurship. -- |
| Keywords: | personal bankruptcy law,insolvency,entrepreneurship,fresh start |
| JEL: | K35 G33 L26 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20118&r=law |
| By: | Christensen, Robert K.; Szmer, John |
| Abstract: | Until recently (e.g., Lindquist 2007), few studies have examined the factors that might affect aspects of judicial efficiency, including the time it takes a court to decide a case. In our analysis of a sample o f U.S. Courts of Appeals decisions from 1971-1996, we examine a variety of potential causes of inefficiency, or pathologies, before suggesting a series of prescriptions. 1 Both authors equally contributed to this manuscript. The authors would like to thank Reese Manceaux for his assistance in merging a variety of seemingly incompatible databases, as well as Nicole Arnold for her assistance in collecting data. |
| Keywords: | judicial efficiency, Courts of Appeals, litigation |
| JEL: | K41 K19 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:uca:ucaiel:4&r=law |
| By: | Gennaioli, Nicola |
| Abstract: | I build a model where potentially biased judges verify complex states by interpreting an imperfect signal whose noise captures factual ambiguities. In a sales and a financial transaction I show that judicial biases amplify and distort factual ambiguities, creating enforcement risk. To insure against such risk, parties write simple non-contingent contracts that optimally protect the party that is most vulnerable to judicial error. These results shed light on the empirical association between law and finance and rationalize salient features of real world enforcement regimes. |
| Keywords: | imperfect judicial enforcement; optimal contracts |
| JEL: | K00 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8405&r=law |