New Economics Papers
on Law and Economics
Issue of 2012‒01‒03
four papers chosen by
Jeong-Joon Lee, Towson University

  1. The Use of Economics for Understanding Law: An Economist's View of the Cathedral By Thomas J. Miceli
  2. Causes of Corruption in Russia: A Disaggregated Analysis By Belousova, Veronika; Rajeev, K. Goel; Korhonen, Iikka
  3. Law, democracy and the quality of government in Africa By Simplice A, Asongu
  4. Retail Electricity Price Savings from Compliance Flexibility in GHG Standards for Stationary Sources By Burtraw, Dallas; Paul, Anthony; Woerman, Matt

  1. By: Thomas J. Miceli (University of Connecticut)
    Abstract: This essay offers some observations, from the perspective of an economist, on the usefulness of economics for understanding law. Economic analysis provides a coherent theoretical framework for unifying different areas of law based on the pursuit of efficiency. It does this by recognizing common problems across different areas, which give rise to solutions that, while outwardly different, have the same underlying form. In this way, economics provides a theory of law. But economists can also learn a lot about how the economy functions by thinking more carefully about the role of law in facilitating economic activity. The success of law and economics ultimately resides in the recognition of this fundamental interrelationship between the two disciplines.
    Keywords: Law and Economics
    JEL: K00
    Date: 2011–12
  2. By: Belousova, Veronika; Rajeev, K. Goel; Korhonen, Iikka
    Abstract: This paper examines determinants of corruption across Russian regions. Key contributions include: (i) a formal study of economic corruption determinants across Russian regions; (ii) comparisons of determinants of perceived corruption versus those of actual corruption; and (iii) studying the influence of market competition and other factors on corruption. The results show that economic prosperity, population, market competition and urbanization are significant determinants of Russian corruption. The use of alternative corruption measures reveals that economic prosperity and population have a largely similar impact on corruption perceptions and corruption incidence. However, there are significant differences in the effects of competition and urbanization.
    Keywords: corruption perceptions, corruption incidence, Russia, government, competition
    JEL: K42 O42 P37
    Date: 2011–12
  3. By: Simplice A, Asongu
    Abstract: This paper examines the big questions of African comparative politics. It assesses the interaction of three crucial components in the development of the continent: law, democracy and quality of government. Political regimes of democracy, polity and autocracy are instrumented with income-levels, legal-origins, religious-dominations and press-freedom levels to account for government quality dynamics of corruption-control, government-effectiveness, voice and accountability, political-stability, regulation quality and rule of law. Findings indicate democracy has an edge over autocracy while the later and polity overlap. A democracy that takes into account only the voice of the majority is better in government quality than autocracy, while a democracy that takes into account the voice of the minority (polity) is worse in government quality than autocracy. As a policy implication, democracy once initiated should be accelerated to edge the appeals of authoritarian regimes and reap the benefits of time and level hypotheses.
    Keywords: Law; Politics; Democracy; Government Policy; Development
    JEL: P43 O10 K00 P16 P50
    Date: 2011–12–20
  4. By: Burtraw, Dallas (Resources for the Future); Paul, Anthony (Resources for the Future); Woerman, Matt (Resources for the Future)
    Abstract: The EPA will issue rules regulating greenhouse gas (GHG) emissions from existing steam boilers and refineries in 2012. A crucial issue affecting the scope and cost of emissions reductions will be the potential introduction of flexibility in compliance, including averaging across groups of facilities. This research investigates the role of compliance flexibility for the most important of these source categories—existing coal-fired power plants—that currently account for one-third of national emissions of carbon dioxide, the most important greenhouse gas. We find a flexible standard, calibrated to achieve the same emissions reductions as an inflexible approach, reduces the increase in electricity price by 60 percent and overall costs by two-thirds in 2020. The flexible standard also leads to substantially more investment to improve the operating efficiency of existing facilities, whereas the inflexible standard leads to substantially greater retirement of existing facilities.
    Keywords: climate policy, efficiency, EPA, Clean Air Act, coal, compliance flexibility, regulation
    JEL: K32 Q54 Q58
    Date: 2011–07–15

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