New Economics Papers
on Law and Economics
Issue of 2011‒06‒18
four papers chosen by
Jeong-Joon Lee, Towson University

  1. The Law and Economics of International Cooperation Against Maritime Piracy By Paul Hallwood; Thomas J. Miceli
  2. Rationalization in the Canadian Retail Gasoline Industry: The Role of Environmental Regulations By Eckert, Heather; Eckert, Andrew
  3. Regulatory Competition in European Corporate and Capital Market Law: An Empirical Analysis By Hornuf, Lars
  4. Terrorist Financing and Money Laundering By Tim Krieger; Daniel Meierrieks

  1. By: Paul Hallwood (University of Connecticut); Thomas J. Miceli (University of Connecticut)
    Abstract: Article 100 of the U.N. Convention on the Law of the Sea requires signatories to “cooperate” against maritime piracy, but “cooperate” is undefined. Enforcement is a public good – creating uncompensated benefits for others, so suffering from free-rider problems. Our analysis readily explains why more pirates captured are released than prosecuted; why the U.N. and International Maritime Organization are seeking to reduce enforcement costs; why some in the shipping industry want to apply the 1988 Convention against terrorism at sea; and why still others want to move prosecution of pirates out of national courts to an international court.
    Keywords: International law, law enforcement, maritime piracy
    JEL: K14 K33
    Date: 2011–06
  2. By: Eckert, Heather (University of Alberta, Department of Economics); Eckert, Andrew (University of Alberta, Department of Economics)
    Abstract: The number of gasoline stations in Canada fell by 40 percent between 1989 and 2000. Many demand and competition related explanations have been offered for this rationalization, while industry sources cite stiffer environmental regulations as a factor in station closures. In the late 1980s and early 1990s most Canadian provinces adopted regulations requiring that unprotected petroleum storage tanks be upgraded or replaced according to a schedule based on the age of the tank and that nearby unprotected tanks also be upgraded or removed. In this paper, we exploit provincial differences in the timing of these regulations to examine the role of upgrade and removal regulations on the timing and degree of station shutdown in 12 cities across the country.
    Keywords: petroleum storage; rationalization; retail gasoline; underground storage tanks; environmental regulations
    JEL: K20 L81 Q58
    Date: 2011–05–01
  3. By: Hornuf, Lars
    Date: 2011–06–01
  4. By: Tim Krieger (University of Mainz); Daniel Meierrieks (University of Paderborn)
    Abstract: Terrorism  causes  enormous  costs  to  society.  Since  the  9/11  attacks,  the  “war  on  terror”  has  therefore  been  an  important  challenge  to  all  civilized  countries.  In  the  present  contribution  we  analyze the root causes and costs of terrorist activity, thereby setting the stage for discussing the  need for measures against terrorist financing. We argue that running a terrorist organization requires  substantial financial resources which are transferred to the groups through clandestine and often  illegal channels. Anti-money laundering policies may appear useful measures to stop transfers to  terrorist groups; however, they are not sufficient means to deal with all facets of terrorist financing.  Compared  to  similar  activities  of  organized  crime,  terrorist  financing  involves  “reverse”  money  laundering. This is a consequence of some fundamental differences between terrorism and organized  crime, which also lead to different impl ications in terms of choosing appropriat e counter-measures.
    Keywords: terrorist financing, causes and costs of terrorism, money laundering, organized  crime vs. terrorism, anti-terrorist financing policies
    JEL: K42 H56 D74
    Date: 2011–06

This issue is ©2011 by Jeong-Joon Lee. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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