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on Law and Economics |
| By: | Jerg Gutmann (University of Hamburg); Matthias Neuenkirch (University of Trier); Florian Neumeier (University of Marburg) |
| Abstract: | We use endogenous treatment-regression models to estimate the causal average treatment effect of US economic sanctions on four types of human rights. In contrast to previous studies, we find no support for adverse effects of sanctions on economic rights, political and civil rights, and basic human rights. With respect to women’s rights, our findings even indicate a positive relationship. Emancipatory rights are, on average, strengthened when a country faces sanctions by the US. Our findings are robust when applying various changes to the empirical specification. Most importantly, this study provides strong evidence that the endogeneity of treatment assignment must be modelled when the consequences of sanctions are studied empirically. |
| Keywords: | Democratization, Discrimination, Economic Sanctions, Endogenous Treatment Model, Human Rights, Interventionism, Protectionism, Repression, United States |
| JEL: | F51 F52 F53 K10 K11 P14 P16 P26 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201627&r=law |
| By: | José Garrido |
| Abstract: | Italian banks are burdened with high levels of nonperforming loans, the cleanup of which depends in important part on the efficiency of insolvency and enforcement processes. Traditionally, these processes in Italy have taken very long, hampering the timely cleanup of balance sheets. In response, the authorities have legislated a number of measures. This paper explores the recent insolvency and enforcement reforms and the remaining challenges. These reforms introduce important positive changes that are expected to yield full benefits over the medium to long term. The efficacy of the reforms, including to deal with the current stock of high nonperforming loans, can be enhanced by introducing effective out-of-court enforcement mechanisms, supplemented by a more intensive use of informal and hybrid debt-restructuring solutions. Moreover, there is an urgent need to rationalize the system, which over the years has become very complex and intricate. |
| Keywords: | Bankruptcy;Italy;Non-performing loans;Corporate debt;Debt restructuring;Financial sector reform;private debt, insolvency, debt restructuring, enforcement of debt. |
| Date: | 2016–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:16/134&r=law |
| By: | Viollaz, Mariana |
| Abstract: | This paper analyzes how changes in the enforcement of labor regulations impact on the compliance rate in a context where the labor rules and the characteristics of the labor inspection system differ by firm size. In addition to the channels analyzed in the existing literature –the deterrence effect of labor inspections and the movement of displaced workers into the informal sector, this paper adds a margin of adjustment not analyzed before: firms can reduce their size to take advantage of lower penalties for violating the labor rules and/or less stringent regulations. I analyze empirically which forces have dominated for workers employed in firms of different size in Peru during 2008-2013. I measure the enforcement of labor regulations as the number of labor inspections per hundred workers at the regional level, and I instrument it using a measure of the arrival cost of labor inspectors to the firms. The findings reveal that the degree of enforcement had little impact on the compliance with labor regulations. The effect of firms reducing their size to enjoy lower fines and/or less stringent regulations was small in magnitude and the direction of the effect was not clear. The general lack of effect of the enforcement measure on the compliance with the labor rules indicates that the labor inspection system is not effective in Peru, either because it is not able to generate the incentives to comply with labor regulations (e.g. because of lack of resources) or because it fails to overcome the consequences of the adjustment process associated to an increase in the compliance level (e.g. displaced workers moving into the informal sector of the economy). |
| Keywords: | enforcement of labor regulations; size-based labor regulations; compliance with labor laws; Peru |
| JEL: | J30 J83 J88 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73498&r=law |
| By: | Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK) |
| Abstract: | This article presents a case for transfer mispricing as an argument for Corporate Social Responsibility (CSR). The argument builds on the position that in order to compensate for potential loss of brand image and reputation, Multinational Companies (MNCs) would be more socially responsible when they are operating in countries where the legislation and laws in place are not effective at identifying and sanctioning transfer mispricing. We first discuss the dark side of transfer pricing (TP), next we present the nexus between TP and poverty and finally we advance arguments for CSR in transfer mispricing. While acknowledging that TP is a legal accounting practice, we argue that in view of its poverty and underdevelopment externalities, the practice per se should be a solid justification for CSR because it is also associated with schemes that deprive developing countries of capital essential for investments in health, education and development programmes. Therefore CSR owing to TP cannot be limited to a strategic management approach, but should also be considered as some kind of social justice because of associated transfer mispricing practices. We further argue that, CSR by multinational corporations could incite domestic companies to comply more willingly with their tax obligations and/or engage in similar activities. Whereas, traditional advocates of CSR have employed concepts such as reputation, licence-to-operate, sustainability, moral obligation and innovation to make the case for CSR, the present inquiry extends this stream of literature by arguing that TP and its externalities are genuine justifications for CSR. We consolidate our arguments with a case study of Glencore and the mining industry in the Democratic Republic of Congo. |
| Keywords: | Corporate Social Responsibility; Transfer pricing; Extreme poverty |
| JEL: | F20 H20 M14 O11 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:16/031&r=law |
| By: | Wolfgang Kerber (University of Marburg) |
| Abstract: | The "UsedSoft" decision of the Court of Justice of the European Union (CJEU) about the right of a buyer of a downloaded copy of a software to resell this copy triggered a controversial discussion about the applicability of the "exhaustion" rule (US: first-sale doctrine) to copyright-protected digital goods (as, e.g., also e-books). This paper offers, in a first step, a systematic analysis and assessment of economic reasonings that have been discussed in the literature about exhaustion, and applies this framework, in a second step, to downloaded digital creative works. An important result is that digitalisation, on one hand, changes considerably the benefits and costs of exhaustion, esp. in regard to the danger of jeopardizing the incentives for copyright owners. On the other hand, however, also the costs of imposing restrictions might be high and even increase in a digital economy. This leads to the conclusion that it is necessary to think seriously about the legal limits for the restrictions that copyright owners should be allowed to impose on their customers. However, these limits might be drawn also by other legal instruments than copyright exhaustion. |
| Keywords: | Digital goods, copyright exhaustion, first-sale doctrine, post-sale restrictions |
| JEL: | K20 L86 O34 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201623&r=law |
| By: | Samuel de Haas (University of Giessen); Johannes Paha (University of Giessen) |
| Abstract: | This article finds that non-controlling minority shareholdings among competitors lower the sustainability of collusion. This is the case under an even greater variety of situations than was indicated by earlier literature. The collusion destabilizing effect of minority shareholdings is mainly caused by their unilateral effects, and it is particularly prevalent in the presence of an effective antitrust authority. |
| Keywords: | Collusion, Coordinated Effects, Minority Shareholdings, Merger Control, Unilateral Effects |
| JEL: | G34 K21 L41 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201632&r=law |
| By: | Chen, Daniel L.; Sethi, Jasmin |
| Abstract: | Sexual harassment is perceived to be a major impediment to female labor force participation. We use the random assignment of U.S. federal judges setting geographically-local precedent, and the fact that judges’ biographies predict decisions in sexual harassment cases, to document the causal impact of forbidding sexual harassment. Consistent with an insider-outsider theory of involuntary unemployment, but in contrast to a mandated benefits theory of employment protections, pro-plaintiff sexual harassment precedent spurred the adoption of sexual harassment human resources policies, encouraged entry of outsiders, and reduced gender inequality in labor supply and wages among the population. These effects were comparable to the effects of the Equal Employment Opportunity Act and greatest in the construction industry, which was heavily affected by sexual harassment litigation. |
| Keywords: | Gender discrimination, microaggression, trauma, safe spaces, prejudice |
| JEL: | J31 J71 J81 J83 K31 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:30653&r=law |
| By: | Ivankina, Elena Vladimirovna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Boronina, A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kupriyanov, S.L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | The work is devoted to analysis of foreign countries the taxation system in order to develop differentiated approaches and rates of taxation of real estate in Russia. In Russia, begins to form on the taxation of property of citizens. The first results of the tax reform will be possible to bring in the end of 2016 - early 2017. Since the reform will be introduced throughout 2016, study foreign experience of taxation is one of the most urgent tasks. Tax Investigation in foreign countries was carried out using both the expert method, and based on the study of existing international information system data. |
| Keywords: | property tax, land tax, taxation of foreign experience |
| Date: | 2016–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:1651&r=law |