nep-law New Economics Papers
on Law and Economics
Issue of 2015‒09‒26
twenty-one papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. Social Norms and Legal Design By Bruno Deffains; Claude Fluet
  2. Non-economic Damages in Medical Malpractice Appeals: Does the Jurisdiction Make a Difference? By Sofia Amaral-Garcia
  3. Implementation of the presumption of innocence principle in European Court of Human Rights and legal proceedings of Finland. By Vladimir Jilkine
  5. Lucky Bias in Bribery Market: An Experimental Evidence from Drug Market Game By Thanee Chaiwat
  6. Protection of employer’s confidential information in the individual and collective labour law By Marta Derlacz-Wawrowska
  7. Non-Cognitive Deficits and Young Adult Outcomes: The Long-Run Impacts of a Universal Child Care Program By Michael Baker; Jonathan Gruber; Kevin Milligan
  8. Do Police Displace Crime? The Effect of the Favela Pacification Program in Rio de Janeiro By Emiliano Tealde
  9. Transboundary Haze Polluters and Accountability: The Legal Landscape in Indonesia and Malaysia By HANIM KAMARUDDIN; CECEP AMINUDDIN
  10. Model Uncertainty and the Effect of Shall-Issue Right-to-Carry Laws on Crime By Steven N. Durlauf; Salvador Navarro; David A. Rivers
  11. The L&E of Intellectual Property – Do we get maximum innovation with the current regime? By Ejan Mackaay
  12. The 'Puts' of the Company's Contract: Unlocking Unpreventable Problems of Private Ordering in Limited Liability Companies By Vicente, Lecia
  13. Unregistered Well-Known Mark Protection In Indonesia By Rika Ratna Permata
  14. The Indonesia's Implementation of Cape Town Convention 2001 By Prita Amalia Faiz
  15. Competition, product safety, and product liability By Chen, Yongmin; Hua, Xinyu
  16. Forensic Accounting and Fraud: Capability and Competence Requirements in Malaysia By Popoola, Oluwatoyin Muse Johnson; Che-Ahmad, Ayoib; Samsudin, Rose Shamsiah
  17. A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control By Simplice Asongu; Jacinta C. Nwachukwu
  18. The Role of Precedent in the Tax Legislation By Anna Zolotareva; Stanislav Shatalov
  19. Implications of cloud computing for personal data protection : An Indonesian perspective By Sinta Dewi Rosadi
  20. Procedural Environmental Rights and Environmental Justice: Assessing the Impact of Environmental Constitutionalism By Joshua C. Gellers; Christopher Jeffords
  21. Public Audit Oversight and Reporting Credibility: Evidence from the PCAOB Inspection Regime By Brandon Gipper; Christian Leuz; Mark Maffett

  1. By: Bruno Deffains; Claude Fluet
    Abstract: We compare fault-based and strict liability offences in law enforcement when behavior is influenced by informal prosocial norms of conduct. Fault tends to be more effective than strict liability in harnessing social or self-image concerns. When enforcement relies on fines and assessing fault is not too costly, the optimal legal regime is fault-based with a standard consistent with the underlying social norm if convictions would seldom occur under optimal enforcement; otherwise liability should be strict. When sanctions are nonmonetary or when stigmatization imposes a deadweight loss, the legal standard may be harsher or more lenient than the social norm.
    Keywords: Social preferences, regulatory offences, law enforcement, strict liability, fault, legal standard, compliance, deterrence,
    JEL: D8 K4 Z13
    Date: 2015–09–16
  2. By: Sofia Amaral-Garcia
    Abstract: This article assesses predictors of payouts and non-economic damages in medical malpractice cases decided by the Spanish Supreme Court from 2006 until 2010. Medical malpractice cases can be judged in administrative or civil courts, and this distinction heavily relies on the type of hospital where the medical accident took place (in general terms, administrative courts judge cases involving public hospitals and civil courts judge cases involving private hospitals). I find that cases decided by the Administrative Section of the Supreme Court are not more likely to receive damages than cases decided by the Civil Section. The probability of receiving compensation is significantly higher among cases involving permanent major/grave injuries. With respect to non-economic compensation amounts, there are no significant differences between Administrative and Civil cases. This result is confirmed by matching estimation and simulation exercises. There is evidence of vertical inequality according to the level of harm: cases involving permanent grave injuries are those receiving the highest non-economic damages, followed by permanent major, death, permanent minor and temporary /emotional cases. Differences in compensation awards between Administrative and Civil courts has been one argument widely used against the current separation of jurisdictions in many civil law tradition countries. The results found in this paper do not support this claim.
    Keywords: medical malpractice, non-economic damages, scheduled damages, Supreme Court, Spain, administrative and civil jurisdictions, litigation
    JEL: K13 K32 K41
    Date: 2015
  3. By: Vladimir Jilkine (Rigas Stradina University, Riga , Latvia)
    Abstract: The presumption of innocence is considered by the European Court of Human Rights, not only as a principle of criminal justice, but also as a "concrete and real" defendant's right to be presumed innocent until the moment of procedural instance described by paragraph 2, article 6 of the European Convention for the Protection of Human Rights and Fundamental Freedoms. A case procedure is based on the presumption of innocence and the interpretation of doubt in favour of the defendant, protects the suspect, meanwhile the officials authorized to conduct the preliminary investigation, are warned against voicing any allegations. Application of the presumption of innocence in Finland is regarded not only in criminal proceedings but also at a much wider spectrum - in tax, environmental, migration and commercial law. These cases are dealt with in the administrative and commercial courts.This article discusses examples for the application of presumption of innocence in the Supreme Court and the Supreme Administrative Court of Finland.
    Keywords: international law, the presumption of innocence, the paradigmatic function of the case-law of the ECHR, the national courts of Finland.
    JEL: K33 K14 K10
    Abstract: Arbitration Agreement between the parties is the important sources of law in the arbitration proceeding, especially in International Commercial Arbitration. Arbitration Agreement, which could be made before and after the dispute, provide jurisdiction to the arbitral tribunal to settle the dispute. Traditionally, the arbitration agreement provide that only the parties in the agreement could be bound the arbitration proceeding. However, in commercial arbitration there is a circumstances, which has third party could be bound to arbitration proceeding. Indonesia has already arbitration law based on Law No. 30 Year 1999 in regard with Arbitration and Alternative Dispute Resolution. This law stipulate how is arbitration proceeding could be proceed in Indonesia, include third party issues in arbitration proceeding which is stipulate in Article 30. Commonly, how is third party could be bound the arbitration proceeding also regulate in Arbitration Rules of the Institutional Arbitration such as ICC with ICC Rules. Indonesia has Institutional Arbitration namely Indonesia National Board of Arbitration, which has BANI rules as Arbitration Rules. In Indonesia the arbitration proceeding also applies the Indonesia Procedural of Civil Law as a source.This article will discuss how is third party could be bound the arbitration proceeding in Indonesia, especially in regard with Commercial Arbitration. The discussion will examine number of issues. First, how is Indonesia Arbitration Law require the definition of third party in arbitration proceeding, compared with international convention or model law. Second, how is Indonesia Arbitration Law, especially Article 30 could be interpreted when there is third party would like to join the arbitration proceeding and how the regulation on Indonesia Procedural of Civil Law could be used to decide or consider third party in arbitration proceeding. This two issues need more elaboration, since Indonesia Arbitration Law has not give more explanation or sample case to explain this article. The result of discussion will be an input for Indonesia to amend the Arbitration Law.
    JEL: K39
  5. By: Thanee Chaiwat (Faculty of Economics, Chulalongkorn University)
    Abstract: Crime is a big problem in every society. In economic aspect, Becker (1974) proposed that the decision on criminal activities depends on the probability to be caught and the degree of penalty. An agent would evaluate his net return before make his decision. However individual may perceive the probability to be caught different from the real known value. This paper employed Tedeschi (2007)’s Drug Market Game to run class experiments of 156 economics students of Chulalongkorn University (Bangkok) and Walailuk University (Nakon Si Thammarat) to observe how individual perceived the probability to be caught. This game divided the subjects into 3 types of buyers, including the addict, the casual, and the curious and 2 types of sellers, including the big supplier and the small supplier. The experimental game started with free market situation, following decriminalization. The police would be inserted into the game with various amounts to vary the caught factor, so both buyers and sellers seem to have reacted rationally. Later, the game proposed the chance to negotiate bribe before being caught under some proportion of the group of police. The results showed that individuals think for themselves and believe that they would be lucky that they can bribe even they know the probability to be caught and the proportion of good police. So they have reacted as same as in the free market situation. This is because individuals have lucky bias for themselves, and create supply in bribery market. So policy implication should concern this lucky bias to restrict bribery supply and reduce crime effectively.
    Keywords: Bribery, Experimental Economics, Behavioral Economics, Law and Economics
    JEL: K42 C91 D03
  6. By: Marta Derlacz-Wawrowska (Instytut Pracy i Spraw Socjalnych / Institute of Labour and Social Studies)
    Abstract: As a result of civilization changes the role of information is increasing. Nowadays information is the more and more important element of an enterprise. That process is reflected in law change. The Author will analyze regulation concerning protection of confidential data of the employer in the context of European Law and its influence on Polish law. Regulations concerning information are present in individual and collective labour law. In the individual labour law protection of confidential data concerns information the employee acquires due to performing of his duties. In collective labour law, number of employee representatives have right to demand from the employer information. These refers to labour unions, works councils, European works councils, employee representatives in the European Company, European Cooperative Society and in the company resulting from the cross-border merger have brought information rights. Giving the right to information needs at the same time introducing mechanisms of protection of employers’ confidential data. In this context it is worth to examine what are the possibilities of enforcement the employer’s duties concerning information and protection of confidential data and what is the liability for violation of confidentiality.The main goals of the paper is to:• analyze the legal considerations regarding employees and employees’ representatives access to the information about employer operation and to show the legal means of protection of those data,• analyze the influence of access to the information and protection of those information on the effectiveness of employees’ representation,• compare the information rights and protection of employer confidential information in the case of different employees’ representations and defining level of cohesion of this regulation,• giving recommendation aimed at improvement of the regulation in the scope of information and protection of employer’ confidential data in the individual and collective labor law.
    Keywords: labour law, confidential information, employee representatives.
  7. By: Michael Baker; Jonathan Gruber; Kevin Milligan
    Abstract: Past research has demonstrated that positive increments to the non-cognitive development of children can have long-run benefits. We test the symmetry of this contention by studying the effects of a sizeable negative shock to non-cognitive skills due to the introduction of universal child care in Quebec. We first confirm earlier findings showing reduced contemporaneous non-cognitive development following the program introduction in Quebec, with little impact on cognitive test scores. We then show these non-cognitive deficits persisted to school ages, and also that cohorts with increased child care access subsequently had worse health, lower life satisfaction, and higher crime rates later in life. The impacts on criminal activity are concentrated in boys. Our results reinforce previous evidence on the central role of non-cognitive skills for long-run success.
    JEL: I1 J13 K42
    Date: 2015–09
  8. By: Emiliano Tealde
    Abstract: An important however understudied challenge in the crime literature is to isolate the causal effect of police presence on crime displacement. Following the announcements of Brazil as the host of the 2014 FIFA World Cup and of the city of Rio de Janeiro as the host of the 2016 Summer Olympic Games, the Government of Rio de Janeiro launched the Favela Pacification Program. The program consists in the expulsion of criminals from some favelas (pacified favelas), territories usually controlled by gangs. Using data on homicide rates across Rio de Janeiro before and after the starting date of the Favela Pacification Program, I find that it displaces crime from pacified to non-pacified favelas.
    JEL: K42
    Date: 2015–09–12
    Abstract: In the second last quarter of 1997, the haze experience affected many countries in South East Asia (SEA) particularly Indonesia and Malaysia. These countries became unwilling victims of slash and burn or burning activities for land clearing purposes carried out in their own forestlands, mostly by foreign vested agricultural companies and local farmers. The impacts of severe haze caused by manmade burning activities in these neighbouring countries at that particular time transcended both borders into other parts of SEA and resulted into economic losses and damages, loss of biodiversity and impacts on human health. It was alleged that agricultural companies that were mostly oil palm concessionaires had used fire as a tool to clear forests including peatland areas to transform the areas into readily planted areas despite the fact that Indonesia and Malaysia were well aware of the need for strict law enforcement. Implementation and changes in domestic laws of Indonesia and Malaysia since the 1997 haze occurrence had proved to be quite challenging in dealing with issues of local burning and prevention thereof. The enforcement to penalise foreign based companies in Indonesia and Malaysia is slow and plagued with issues related to alleged cronyism and corruption, lack of awareness and education, weaknesses in institutional framework and lack of political will. In addition, the penalties imposed are too low that it is insufficient to deter further acts of environmental pollution by these companies. Whilst these limitations hinders effective enforcement in both countries, incidences of forest fires leading to transboundary haze pollution becomes more imminent particularly between March to October each year. Hence, it is suffice to conclude that domestic laws have been insufficient to control and prevent transboundary haze from activities by foreign vested agricultural companies in Indonesia or Malaysia. As these companies have Indonesian or Malaysian interests that carry out agricultural activities in either countries, an external regulation should be explored to complement and support internal regulation in each country to ensure that the activities of these transnational companies are undertaken within the confines of environmental standards and ASEAN notion of cooperation. Thus, a legitimate legislative framework to impose and enforce internationally environmental standards recognised under human rights obligations upon the overseas activities of the plantation corporations incorporate within the host state’s territory may be feasible to imposing accountability to haze polluters in Indonesia and Malaysia.
    Keywords: haze, polluters, Malaysia, Indonesia, accountability, companies.
    JEL: K32 Q53 K33
  10. By: Steven N. Durlauf; Salvador Navarro; David A. Rivers
    Abstract: This paper explores the role of model uncertainty in explaining the different findings in the literature regarding the effect of shall-issue right-to-carry concealed weapons laws on crime. In particular, we systematically examine how different modeling assumptions affect the results. We find little support for some widely used assumptions in the literature (e.g., population weights), but find that allowing for the effect of the law to be heterogeneous across both counties and over time is important for explaining the observed patterns of crime. In terms of model uncertainty, we find that there is substantial variation in the estimated effects for each model across all dimensions of the model space. This suggests that one should be cautious in using the results from any particular model to inform policy decisions.
    JEL: H0 K0
    Date: 2015–09
  11. By: Ejan Mackaay
    Abstract: Innovation is crucial to economic growth – the essential path for lifting much of the world population out of dire poverty and for maintaining the living standard of those who already have. To stimulate innovation, the legal system has to support the means through which innovators seek to get rewarded for their efforts and risks taken. Amongst these means, some, such as the first mover advantage or 'lead time,' are not directly legal; but secrets and intellectual property rights are legal institutions supported for the specific purpose of stimulating innovation. Whilst the protection of secrets has not changed very much over recent years, intellectual property (or IP) has. IP borrows some features from ordinary property rights, but is also distinct, in that, unlike physical goods, information, the object of IP, is not inherently scarce; indeed as information and communication technologies expand, the creation and distribution of information is becoming ever cheaper and in many circumstances abundant, so that selection is of the essence ('on the internet, point of view is everything'). New information builds on already existing information. Where rights on information extend too far, their monopolising effect may hamper innovation. The paper investigates the underlying structure of IP rights and surveys what we know empirically about the incentive effects of IP as about industries that flourish without formal IP. L'innovation est essentielle à la croissance économique, elle-même la voie obligée pour faire sortir une grande partie de la population mondiale de la misère et pour maintenir le niveau de vie des personnes qui en sont déjà sorties. Pour stimuler l'innovation, le système juridique doit soutenir les moyens par lesquels les innovateurs cherchent rémunération de leurs efforts et des risques pris. Parmi ceux-ci, certains comme l'« avance de départ » ne sont pas directement juridiques; mais le secret commercial et la propriété intellectuelle sont des institutions juridiques soutenues dans le but précis de stimuler l'innovation. Alors que la protection des secrets n'a pas beaucoup évolué au cours des ans, la propriété intellectuelle (PI) l'a bien. La propriété intellectuelle emprunte certains traits de la propriété classique des biens matériels, mais est aussi distincte, en ce que, contrairement aux biens matériels, l'information – l'objet de la PI – n'est pas par nature rare ; en fait, à mesure que les technologies de l'information et des communications s'étendent, la création et la distribution de l'information devient toujours moins chère. Dans certains cas, l'information devient même abondante à telle enseigne que la sélection et essentielle ('on the internet, point of view is everything'). L'information nouvelle s'appuie sur de l'information déjà disponible. Là où les droits sur l'information, et notamment la PI, s'étendent trop loin, leurs effets monopolisateurs risquent d'interférer avec l'innovation. Le texte examine la structure sous-jacente des droits de propriété intellectuelle et fait un survol de ce que nous savons de manière « empirique » sur les effets incitatifs de la PI de même que des industries qui prospèrent sans droit de propriété intellectuelle formel.
    Keywords: intellectual property – copyright – innovation, propriété intellectuelle, droit d'auteur, innovation
    JEL: K00 K29 L17 O31 O34
    Date: 2015–09–15
  12. By: Vicente, Lecia (University of IL)
    Abstract: This essay applies principles of process analysis to the study of bottlenecks in the limited liability company, as a result of bargaining failures or problems of private ordering in these companies. This essay focuses on governing the operating agreement or the company's contract of private limited liability companies (LLCs) to overcome bargaining failures deriving from changes in the ownership structure of these companies after membership interests are sold without the consent of the company's other members. The main premise on which the governance of the company's contract relies on boils down to one fundamental assertion. The sale of legal products ought to equal a minimum of supply and demand. In other words, from the normative viewpoint, the coordination of the supply and demand sides of legal provisions ought to be the perspective from which legal design both at the legislative and market levels is understood. Thus, managing bargaining problems in the LLC whenever there is an un-consented transfer of membership rights provides the context of this essay. The coordination of supply and demand of legal products provides the perspective. In this light, the main goal of this essay is to provide contractual mechanisms that allow the right legal products and resources to be at the right place at the right time so as to maximize these companies' profitability and their shareholders' wealth. The products are corporate default rules. Resources include people (members, managers or directors, officers), information, money, or a combination of all these elements. This essay focuses on the contractual features of the LLC and their members' freedom of contract. There is a puzzling side to the freedom of contract that the members of these companies enjoy. They are free to set the regulatory framework of the company. However, more often than not, members of these business organizations have not been able to surmount bargaining failures that come as a result of lack of commitment and social expertise on their side, particularly when mutual dependence among members and the managing board is very strong and the level of relational embeddedness is very high.
    Date: 2015
  13. By: Rika Ratna Permata (Faculty of Law, Universitas Padjadjaran)
    Abstract: As a part of Intellectual Property Rights, Trademark have a significant role in trade and business activities. Trade Marks has a function as identification to distinguish the production of goods or services produced by a person as a means to promote of the goods or services as well as a guarantee of the products quality within the same time a mark will create an image on the reputation of the goods or services. and many of them Became well-known mark. Mark represent the goods or services will make the mark became famous mark so it needs legal protection for the marks owners. Indonesia which has been stipulated in Trade Mark Act, 2001 apply first to file system which will provide legal protection to those who register its marks in the Directorate General of Intellectual Property Rights to obtain exclusive rights and legal protection and recognized as a legitimate owners. In the Trade Mark Law especially in Criminal provisions do not set penalties for infringement of unregistered trade mark and raised legal questions as to how the legal action can be taken when there is infringement unregistered well-known in Indonesia.
    Keywords: well-known mark, unregister mark, protection
    JEL: K39
  14. By: Prita Amalia Faiz (Faculy of Law, Universitas Padjadjaran)
    Abstract: Pursuant to Article 38 paragraph I of the Statute of International Court of Justice, international convention constitutes one of the most important source of International Law. Ratification is a phase of international convention drafting which is relied on the state’s policy regarding the relation to international law and national law. In 2007, Indonesia ratified the Cape Town Convention 2001 through the President Decree No. 8 Year 2007. The adoption of International Law to National Law of a state will affect the national law of such state. Thus, it is important to observe the implementation of Cape Town Convention 2001 in Indonesia and its impact, whether its advantages or disadvantages to national law of Indonesia.This research uses normative juridical method with analysis descriptive approach. The research knowledge by primary, secondary, and tertiary sources and also discussing international convention especially concerning ratification of Cape Town Convention 2001 by Indonesia related to Law No. 1 of 2009.In Implementation the Cape Town Convention 2001, Indonesia had accommodated several provisions of the national law, among other things, the Law of Aviation 2009 and several implementing regulations i.e. Minister of Transportation Decree. Four essential matters which should be implemented related to international interest, priority right, and the remedy, the provision of international registration have not implemented yet by Indonesia. The ratification of Cape Town Convention 2001 and advantages the Indonesian aviation companies by having rate reduction from American Export Import Bank for the airplane trades, however the Indonesian aviation companies should be aware of such privilege in entering into the airplane procurement contracts due to the international interest therein, hence in the event of breach of contract, the creditor can withdraw the airplane by virtue of the international registration based on Cape Town Convention 2001.
    Keywords: Cape Town Convention 2001, Implementation and Ratification, International Interest, International Registration
    JEL: K30
  15. By: Chen, Yongmin; Hua, Xinyu
    Abstract: A firm's incentive to invest in product safety is affected by both the market environment and the liability when its product causes consumer harm. A long-standing question in law and economics is whether competition can (partially) substitute for product liability in motivating firms to improve product safety. We investigate this issue in a spatial model of oligopoly with product differentiation, where reputation provides a market incentive for product safety and higher product liability may distort consumers' incentive for proper product care. We find that partial liability, together with reputation concerns, can motivate firms to make socially desirable safety investment. Increased competition due to less product differentiation lowers equilibrium market price, which diminishes a firm's gain from maintaining reputation and raises the socially desirable product liability. On the other hand, an increase in the number of competitors reduces both the benefit from maintaining reputation and the potential cost savings from cutting back safety investment; consequently, the optimal liability may vary non-monotonically with the number of competitors in the market. In general, therefore, the relationship between competition and product liability is subtle, depending on how competition is measured.
    Keywords: product safety, product liabilty, competition
    JEL: K13 L13 L15
    Date: 2015–09–04
  16. By: Popoola, Oluwatoyin Muse Johnson; Che-Ahmad, Ayoib; Samsudin, Rose Shamsiah
    Abstract: The 2011 Global Economic Crime Survey instituted by PricewaterhouseCoopers confirms the economic crime in Malaysia to be on the increase and, therefore, requires immediate attention to stem the tides. In anticipation of the challenges occasioned due to a shift from the modified cash basis to the accrual basis of accounting, the Malaysian State’s determination to move from a developing nation to a developed nation and to be ranked among the first 10 in 2020, this paper presents the need for forensic accountant and auditor capability (i.e., mindset and skills) on forensic accountant and auditor competence (i.e., task performance fraud risk assessment (TPFRA)) in the Malaysian public sector. It also draws the attention of the users of public sector accountants and auditors to the understanding of fraud mechanisms and how to deal with fraudsters. The population of this study comprised the accountants and auditors in the office of the Accountant General and Auditor General of Malaysia. The objective of this paper is to investigate the competence requirements of accountants and auditors in the effective and efficient utilization of capability requirements, which have the potentials to usher in the best global practices in fighting fraud in the Malaysian public sector.
    Keywords: Fraud Forensics, Accounting, Accountability, Forensic Accounting, Auditing, Assurance, Corporate Governance, Risk Management, Investigation, Risk Assessment, Task Performance, Problem Representation, Skills, Mindset, Knowledge, Values, Ethics, Fraud Risk Assessment, Financial Criminology, Fraud, Fraud Related Problem Representation, Fraud Prevention, Fraud Detection, Fraud Response, Fraud Specialist, Auditor, Forensic Accountant, Fraud Examiner
    JEL: M4 M40 M41 M42 M48 M49
    Date: 2014
  17. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University)
    Abstract: We build on existing literature and contemporary challenges to African development to assess the role of political stability in fighting corruption and boosting corruption-control in 53 African countries for the period 1996-2010. We postulate that on the one hand, an atmosphere of political instability should increase the confidence of impunity owing to less corruption-control. On the other hand, in the absence such impunity from corruption, political instability further fuels corruption. Our findings validate both hypotheses. Hence, contrary to a stream of the literature, we establish causal evidence of a positive (negative) nexus between political stability/no violence and corruption-control (corruption). The empirical evidence is based on Generalized Methods of Moments. The findings are robust to contemporary and non-contemporary quantile regressions. The political stability estimates are consistently significant with decreasing (increasing) magnitudes throughout the conditional distributions of corruption (corruption-control). In other words, the positive responsiveness of corruption-control to political stability is an increasing function of corruption-control while the negative responsiveness of corruption to political stability is a decreasing function of corruption. Simply put: a good turn deserves another.
    Keywords: Fragility; Corruption; Conflicts; Africa
    JEL: F52 K42 O17 O55 P16
    Date: 2015–09
  18. By: Anna Zolotareva (Gaidar Institute for Economic Policy); Stanislav Shatalov (Gaidar Institute for Economic Policy)
    Abstract: The paper analyses available in theory approaches to the definition of judicial precedent. Authors compared precedent and judicial legislation in the countries jus commune and Russia. They assess wide powers of the courts in Russia at the expense of the Constitutional Court and introduction of precedent system in arbitrage
    Keywords: Russian economy, precedent law
    JEL: Y80
    Date: 2014
  19. By: Sinta Dewi Rosadi (Faculty of Law, University of Padjadjaran, Bandung, Indonesia)
    Abstract: ABSTRACTThe implementation of e-health programs and protection of data privacy: a comparative study between Indonesia, Australia and MalaysiaDr. Sinta Dewi RosadiThe application of e-health program refers to tools and services using information and communication technologies (ICTs) that can improve prevention, diagnosis, treatment, monitoring and management. The e-health program can benefit the entire community by improving access to care and quality of care and by making the health sector more efficient includes information and data sharing between patients and health service providers, hospitals, health professionals and health information networks; electronic health records; telemedicine services; portable patient-monitoring devices, operating room scheduling software. The e-health goals is to improve citizens' health by making life-saving information available and increase healthcare quality and access by making e-health as part of health policy and to provide health services more effective, user-friendly and widely accepted by involving professionals and patients in strategy, design and application. As one of the archipelago country with the total population estimated 255 million Indonesia has encounter many challenges in providing better health services so that the e-health program is one alternatives to provide better health services. However in the implementation of e-health program will facing legal challenges since the patients personal data is a sensitive data and its collection, use and storage needs legal protection and if the health care services provider does not keep the patients health data in confidential there will be a real risk that people will stop sharing their medical history with healthcare provider if they don’t have confidence that the right privacy controls are in place. This article is the result of preliminary study that analyze the legal framework of protection of e-health program relating data privacy protection is available and compare with Australia and Malaysia
    Keywords: ( Key words: e-health program, legal protection, data privacy)
    JEL: K29
  20. By: Joshua C. Gellers (University of North Florida); Christopher Jeffords (Indiana University of Pennsylvania)
    Abstract: The global trend toward the adoption of environmental rights within national constitutions has been largely regarded as a positive development for both human rights and the natural environment. The impact of constitutional environmental rights, however, has yet to be systematically assessed using empirical data. In particular, the expansion of procedural environmental rights—legal provisions relating to access to information, participation, and justice in environmental matters—provides fertile ground for analyzing how environmental rights directly interface with conditions necessary for a functioning democracy. In order to understand the extent to which these provisions deliver on their lofty aspirations, the authors conduct a quantitative analysis designed to evaluate the relationship between procedural environmental rights and environmental justice. The results demonstrate that states with procedural environmental rights are more likely than non-adopting states to facilitate the attainment of environmental justice, especially as it relates to access to information.
    Keywords: environmental rights, constitutionalism, environmental justice, human rights, democracy, sustainable development
    Date: 2015–08
  21. By: Brandon Gipper; Christian Leuz; Mark Maffett
    Abstract: This paper examines how audit oversight by a public-sector regulator affects investors’ assessments of reporting credibility. We analyze whether the introduction of the Public Company Accounting Oversight Board (PCAOB) and its inspection regime have strengthened capital-market responses to unexpected earnings releases, as theory predicts when reporting credibility increases. To identify the effects, we use a difference-in-differences design that exploits the staggered introduction of the inspection regime, which affects firms at different points in time depending on their fiscal year-ends, auditors, and the timing of PCAOB inspections. We find that capital-market responses to unexpected earnings increase significantly following the introduction of the PCAOB inspection regime. Corroborating these findings, we also find an increase in abnormal volume responses to firms’ 10-K filings after the new regime. Overall, our results are consistent with public audit oversight increasing the credibility of financial reporting.
    JEL: G14 G18 G38 K22 M41 M42 M48
    Date: 2015–09

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