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on Law and Economics |
| By: | Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian |
| Abstract: | In this paper we contribute to the discussion on whether intellectual property rights foster or hinder innovation by means of a laboratory experiment. We introduce a novel Scrabble-like creativity task that captures most essentialities of a sequential innovation process. We use this task to investigate the effects of intellectual property allowing subjects to assign license fees to their innovations. We find intellectual property to have an adversely effect on welfare as innovations become less frequent and less sophisticated. Communication among innovators is not able to prevent this detrimental effect. Introducing intellectual property results in more basic innovations and subjects fail to exploit the most valuable sequential innovation paths. Subjects act more self-reliant and non-optimally in order to avoid paying license fees. Our results suggest that granting intellectual property rights hinders innovations, especially for sectors characterized by a strong sequentiality in innovation processes. |
| Keywords: | innovation,intellectual property,laboratory experiment,real effort task,creativity |
| JEL: | C91 D89 K39 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:227&r=law |
| By: | Arnaud Chevalier ; Olivier Marie |
| Abstract: | Do people born at different points of the economic cycle have different outcomes - and if so, why? Arnaud Chevalier and Olivier Marie examine the educational attainment and criminal activity of children born in East Germany in the few years after the fall of the Berlin Wall - a time when uncertainty about the future was extremely high. |
| Keywords: | Crime, parental selection, fertility, economic uncertainty, risk attitude |
| JEL: | J13 K42 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:436&r=law |
| By: | Liang, H. (Tilburg University, Center For Economic Research ); Renneboog, L.D.R. (Tilburg University, Center For Economic Research ) |
| Abstract: | We investigate the fundamental determinants and value implications of corporate social responsibility (CSR) around the world. We contrast three broad views on CSR: (1) it is a response to government failure; (2) it reflects individual and societal preferences; (3) it is an equilibrium result of a country's legal origin that shapes the corporations' tradeoff between shareholder and stakeholder values. Using public and proprietary country-level sustainability and firm-level CSR data, we find that: (a) Legal origins are more fundamental sources of CSR than political, social, and firm-level financial forces; (b) The English common low, widely-recognized as being most shareholder-oriented and economically efficient, fosters CSR and sustainability the least, while companies under the civil law origin assume most social responsibilities; (c) Globally, CSR contributes to shareholder value maximization. |
| Keywords: | Corporate social responsibility; sustainability; legal origins; stakeholder orientation |
| JEL: | G30 K22 M14 O10 O57 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:953c5933-c42b-4e58-a3da-0649736ec156&r=law |
| By: | Ross Levine ; Chen Lin ; Wensi Xie |
| Abstract: | Do stock markets act as a “spare tire” during banking crises, providing an alternative corporate financing channel and mitigating the economic severity of banking crises? Using firm-level data in 36 countries from 1990 through 2011, we find that the adverse consequences of banking crises on firm profitability, employment, equity issuances, and investment efficiency are smaller in countries with stronger shareholder protection laws. These findings are not explained by the development of stock markets or financial institutions prior to the crises, the severity of the crisis, or overall economic, legal, and institutional development. The evidence is consistent with the view that stronger shareholder protection laws provide the legal infrastructure for stock markets to act as alternative sources of finance when banking systems go flat, easing the impact of the crisis on the economy. |
| JEL: | D22 E02 G21 G3 G38 K22 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20863&r=law |
| By: | Marchesiani, Alessandro (University of Bath ); Nosal, Ed (Federal Reserve Bank of Chicago ) |
| Abstract: | This paper examines the implications associated with a recent Supreme Court ruling, Kelo v. City of New London. Kelo can be interpreted as supporting eminent domain as a means of transferring property rights from one set of private agents — landowners — to another private agent — a developer. Under voluntary exchange, where the developer sequentially acquires property rights from landowners via bargaining, a holdout problem arises. Eminent domain gives all of the bargaining power to the developer and, as a result, eliminates the holdout problem. This is the benefit of Kelo. However, landowners lose all their bargaining power and, as a result, their property investments become more inefficient. This is the cost of Kelo. A policy of eminent domain increases social welfare compared to voluntary sequential exchange only when the holdout problem is severe, and this occurs only if the developer has very little bargaining power. We propose an alternative government policy that eliminates the holdout problem but does not affect the bargaining power of the various parties. This alternative policy strictly dominates a policy of eminent domain, which implies that eminent domain is an inefficient way to transfer property rights between private agents. |
| Keywords: | Private Property; Private Takings; Property Rules; Liability Rules |
| JEL: | H42 K00 K10 K11 |
| Date: | 2014–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-2014-26&r=law |
| By: | Zats, Ronit |
| Abstract: | The aim of the current study was to learn about the difficulties stemming from invisible disorders in the practice of law, what do lawyers with invisible disorders do to cope with their disorders, what are their considerations in choosing their job specialty, what is their motivation to choose law as their profession and practice it, and how do they define their professional success and failure. Practicing law is challenging in many aspects. First, one is at a position to be knowledgeable about legislation, which has a dynamic nature. There is a constant need for recognizing the issues at hand, while acting fast to find proper legislative solutions to represent the client as best as possible. To do this, a lawyer is ought to be able to properly analyze the case, be knowledgeable about relevant laws and legislation, be detail-oriented, be able to multi-task and manage large amount of information, to properly assess what the main issue at hand is, and efficiently manage the case. Practicing law also requires proper communication and having the ability to connect between details - all of which must be accomplished within a strict timeline. Therefore, to succeed as a lawyer, one should be focused, be able concentrate on a high level, and have good organizational and time management skills. Some lawyers are struggling with invisible disabilities, such as attention deficits and hyperactivity disorders, as well as learning disabilities, and for them practicing law is a double-challenge. Similarly to their colleagues, they are required to practice law as demanded by their profession, but (and mainly) cope with their invisible disorder to professionally succeed. Often individuals with invisible disabilities are unaware of their situation and to the fact that these may have been the source for their difficulties in school or at work. For example, they may have difficulties to carry through assignments from beginning to end, to focus on one task, and they may unsuccessfully try to concurrently engage in many tasks. During school they may overcome their disorder by creating coping mechanisms, such as studying in groups, rewriting assignments, and reading class' notes taken by classmates, to compensate for their disabilities. Usually such coping strategies masked their disorder from them and their surroundings. Nevertheless, other individuals with sucfh disorders are aware of their situation, thereby they have been getting accommodations to their disabilities while in school (e.g. time-adjustment during exams, fitting the type of exams to their capabilities, and tutoring). Like other students with invisible disabilities, law students with these kinds of difficulties may eventually do very well in school. The main challenge for these lawyers is in the workforce. Practicing law is a very competitive occupation. The institution of law, the clients and colleagues, and the community – all have high expectation from lawyers. In Israel there is not enough awareness for the possibility that professionals who practice law may be struggling with invisible disabilities. |
| Keywords: | lawyer, inviible disabilities, performance |
| JEL: | K00 M59 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61486&r=law |
| By: | Ingrid Henriksen (University of Southern Denmark ); Eoin McLaughlin (University of St. Andrews ); Paul Sharp (University of Southern Denmark ) |
| Abstract: | Why did the establishment of cooperative creameries in late nineteenth century Ireland fail to halt the relative decline of her dairy industry compared to other emerging producers? This paper compares the Irish experience with that of the market leader, Denmark, and shows how each adopted the cooperative organisational form, but highlights that an important difference was institutional: specifically regarding the enforcement of vertically binding contracts, which are considered to be of vital importance for the successful operation of cooperatives. We argue that this failure, combined with a strong proprietary sector which was opposed to cooperation, reinforced the already difficult conditions for dairying in Ireland due to poor social capital. |
| Keywords: | Contracts, cooperation, dairying, Ireland |
| JEL: | K12 L31 N43 N53 Q13 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0071&r=law |
| By: | Martin Backfisch (Duale Hochschule Baden-Württemberg ) |
| Abstract: | Firms’ search for external knowledge is one aspect of knowledge integration in the innovation process. The literature has investigated innovation and the breadth of search in different information channels. We introduce the concept of search balance reflecting the heterogeneity of a firm’s knowledge base. Results from German Community Innovation Survey data shows that search balance is positively connected to the introduction of product as well as process innovations. The connection is stronger for process innovations. The relative balance between all information sources used by firms is important for process innovations, but less so for product innovations. Product innovations rely on specific search directions where internal or market-based knowledge is found, offering an alternative to balanced search. Such an alternative does not exist for process innovations such that knowledge from specific information channels has to be accompanied by balanced search in other channels to be successfully used for process innovations. |
| Keywords: | Openness, knowledge sources, innovative search, search balance, innovation, innovation performance |
| JEL: | K21 K42 L41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201461&r=law |
| By: | Siddhartha Bandyopadhyay ; Bryan C McCannon |
| Abstract: | We analyze the impact of prosecutor elections on case backlogs. Previous evidence has shown that re-election pressures result in more cases going to trial. Since trials require time and resources, one can expect an effect on the queue. Two competing theories are developed: one of signalling quality in an asymmetric information environment and one of effort exertion, each of which can explain increased trials before election, but differ in their predfictions regarding the impact on backlogs. A district-level, panel data set of caseload flows in North Carolina is analyzed. Evidence is presented that contested re-elections are associated with a decrease in the number of cases handled and an acceleration of the growth of the backlog. This suggests that retention concerns lead to signaling which causes distortions, re-allocating resources from disposing cases to prosecuting cases at trial. |
| Keywords: | case backlog, elections, prosecutor |
| JEL: | K41 D82 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:14-10&r=law |