nep-law New Economics Papers
on Law and Economics
Issue of 2019‒03‒11
eight papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. Researching legal mobilisation and lawfare By Handmaker, J.D.
  2. Refugees welcome? Understanding the regional heterogeneity of anti-foreigner hate crimes in Germany By Entorf, Horst; Lange, Martin
  3. The Effectiveness and Effects of Alcohol Regulation: Evidence from India By Dara Lee Luca; Emily Owens; Gunjan Sharma
  4. Games and Network Structures on Corruption, Income Inequality, and Tax Control By Elena Gubar; Edgar Javier Sanchez Carrera; Suriya Kumacheva; Ekaterina Zhitkova; Galina Tomilina
  5. The Use of Data in Assessing and Designing Insolvency Systems By José Garrido; Wolfgang Bergthaler; Chanda M DeLong; Juliet Johnson; Amira Rasekh; Anjum Rosha; Natalia Stetsenko
  6. Shedding light on the shadows of informality : A meta-analysis of formalization interventions targeted at informal firms By Floridi, A.; Demena, B.A.; Wagner, N.
  7. Civil Society Meta-organizations and Legitimating Processes: the Case of the Addiction Field in France By Adrien Laurent; Pierre Garaudel; Géraldine Schmidt; Philippe Eynaud
  8. Do Cross-border Patents Promote Trade? By Brunel, Claire; Zylkin, Thomas

  1. By: Handmaker, J.D.
    Abstract: Law-based, civic-led advocacy has long been an important means for addressing rule of law deficits and problems of development and governance more generally. Authoritarian regimes, official and/or corporate foreign-based corruption and the structural limitations of formal rule of law mechanisms to deliver impartial justice have forced legal advocates to think creatively. This has resulted in some interesting examples of civic-led, law-based advocacy through both informal and formal structures, aimed at pursuing social justice. However, it is important to clearly distinguish legal mobilisation from illegitimate forms of legal instrumentalism, such as lawfare. In this Working Paper, I set out some of my current research ideas in this area and in particular explain my approach to researching legal mobilisation, which I regard as a practice as well as a socio-legal concept and approach, with a particular emphasis on the use of law as a form of political legitimacy.
    Keywords: legal mobilisation, lawfare
    Date: 2019–02–20
  2. By: Entorf, Horst; Lange, Martin
    Abstract: In this article, we examine anti-foreigner hate crime in the wake of the large influx of asylum seekers to Germany in 2014 and 2015. By exploiting the quasi-experimental assignment of asylum seekers to German regions, we estimate the causal effect of an unexpected and sudden change in the share of the foreign-born population on anti-foreigner hate crime. Our county-level analysis shows that not simply the size of regional asylum seeker infl ows drives the increase in hate crime, but the rapid compositional change of the residential population: Areas with previously low shares of foreign-born inhabitants that face large-scale immigration of asylum seekers witness the strongest upsurge in hate crime. Economically deprived regions and regions with a legacy of anti-foreigner hate crimes are also found to be prone to hate crime against refugees. However, when we explicitly control for East-West German differences, the predominance of native-born residents at the local level stands out as the single most important factor explaining the sudden increase in hate crime.
    Keywords: hate crime,immigration,natural experiment,regional conditions
    JEL: J15 R23 K42
    Date: 2019
  3. By: Dara Lee Luca; Emily Owens; Gunjan Sharma
    Abstract: The authors provide quasi-experimental evidence on the effects of alcohol regulation on alcohol consumption and associated public health outcomes using detailed individual level and aggregate data from India
    Keywords: Alcohol consumption, Domestic violence, Violence against women, Prohibition, Minimum legal drinking age, Smoking, Motor vehicle accidents
    JEL: I F Z
  4. By: Elena Gubar (Faculty of Applied Mathematics and Control Processes, St. Petersburg State University); Edgar Javier Sanchez Carrera (Department of Economics, Society & Politics, Università di Urbino Carlo Bo); Suriya Kumacheva (Faculty of Applied Mathematics and Control Processes, St. Petersburg State University); Ekaterina Zhitkova (Faculty of Applied Mathematics and Control Processes, St. Petersburg State University); Galina Tomilina (Faculty of Applied Mathematics and Control Processes, St. Petersburg State University)
    Abstract: IWe study taxpayers’ decisions according to their personal income, individual preferences with respect to the audit and tax control information perceived in their social environment. We consider that citizens are classified by two social groups, the rich and the poor. When public authorities are corrupt, we show that the poor group is the most affected by corruption. However, when taxpayers are corrupt or tax evaders, we implement mechanisms to audit and control this corrupt behaviour. We show that this situation can be represented by several well-known theoretical games. Then, evolutionary dynamics of the game in networks considering that each taxpayer receives information from his neighbours about the probability of audit is analyzed. Our simulation analysis shows that the initial and final preferences of taxpayers depend on important parameters, i.e. taxes and fines, audit information and costs.
    Keywords: Behavioral economics; Corrupt behavior; Income distribution; Income taxation system; Network Games; Population games
    JEL: C72 C73 O11 O12 O55 K42
    Date: 2018
  5. By: José Garrido; Wolfgang Bergthaler; Chanda M DeLong; Juliet Johnson; Amira Rasekh; Anjum Rosha; Natalia Stetsenko
    Abstract: To date, the use of empirical data in insolvency law analysis has been sporadic. This paper provides a conceptual framework for the use of data to assess the effectiveness and efficiency of insolvency systems. The paper analyzes the existing sources of data on insolvency proceedings, including general insolvency statistics, judicial statistics, statistics of insolvency regulators and other sources, and advocates for the design of special data collection mechanisms and statistics to conduct detailed assessments of insolvency systems and to assist in the design of legal reforms.
    Date: 2019–02–04
  6. By: Floridi, A.; Demena, B.A.; Wagner, N.
    Abstract: Governments and policy-makers promote formalization through various interventions ranging from simplifying registration procedures to increasing enforcement of the law. But despite various efforts, not much is known about the effects of interventions aiming at formalizing informal firms. This meta-analysis examines the empirical literature on the impact of such formalization interventions. We systematically assessed the literature on the impact of formalization policies resulting in 568 observations from 18 studies conducted by 33 researchers and published until June 2018. We analyzed the meta-impact of (i) cost, (ii) benefit and (iii) enforcement policy interventions and assessed whether the resulting outcomes are influenced by the type of data, econometric approach, and specification as well as publication bias. The findings suggest that policies increasing the benefits after formalization are associated with the highest formalization rates. Yet, the overall impact of the studied policy interventions remains weak when we control for publication quality and method heterogeneity. Overall, we only find modest evidence for increased formalization associated with the so far implemented interventions suggesting that it is high time to consider new approaches in addressing the informal economy.
    Keywords: meta-regression analysis, informal enterprises, formalization, developing countries
    Date: 2019–02–21
  7. By: Adrien Laurent (IAE Paris - Sorbonne Business School); Pierre Garaudel (IAE Paris - Sorbonne Business School); Géraldine Schmidt (IAE Paris - Sorbonne Business School); Philippe Eynaud (IAE Paris - Sorbonne Business School)
    Abstract: To cope with the new challenges inherent to their political role, Civil Society Organizations (CSOs) must convince their stakeholders about their legitimacy, and meta-organizations (MOs) appear to play a central role in such a context (Arhne & Brunsson, 2005; Bonfils, 2011). In this paper, we aim to better understand the legitimating processes of a specific kind of MOs-namely Civil Society M Os (CSMOs)-, considering that CSMOs feature some characteristics that reinforce both internal and external legitimacy issues. Our research is based on an in-depth case study of a French national federation (Fédération Addiction) formed by the merger of two former federations originating in different fields, alcoholism treatment and drug addiction professionals. We confirm the importance of stakeholders' representativeness in the governance of MOs and especially in multi-stakeholders CSMOs, and we corroborate the assertion that MOs closely relate to categorization-related issues and the categorization process itself in many ways: the legitimacy and the potential f or action of M Os depend on the socially perceived appropriateness of the delimitation of the f ield that they claim to represent, and at the same time categorization is reinforced by the creation of MOs. We contribute to the current literature on MOs in two main ways. First, we show how a change in the relevant categorization may result from the dual and interacting actions of the M Os themselves and public authorities. Second, our case study illustrates how a restructuring of the MOs landscape may strengthen the salience of internal legitimacy issues federative actors are confronted with in order to maintain their representativeness and position in the expanded organizational field. In this dynamic context, external and internal legitimating processes appear closely intricate, and categorization and governance issues appear strongly interrelated.
    Keywords: Key-words: Legitimacy,legitimating process,meta-organizations,civil society organizations,merger,addictions,addictology
    Date: 2019–01
  8. By: Brunel, Claire; Zylkin, Thomas
    Abstract: While we would expect that cross-border patents are used to protect a technology that is made available in another country, that technology could either be produced locally or imported. International patent filings could therefore be either complements or substitutes to international trade. This study combines data on patenting and trade for 149 countries and 249 industries between 1974 and 2006 with a "three-way" PPML panel data model that addresses several biases emphasized in the trade literature in order to provide a systematic analysis of how bilateral trade responds to cross-border patent filings. We find that cross-border patents have a positive (complementary) overall effect on the patent-filing country's exports to the patent-granting country and no effect overall on imports flowing in the opposite direction. These effects vary substantially across industries and destination markets. Patents promote significantly more bilateral export growth--and significantly less bilateral import growth--in less-differentiated industries and are found to have stronger effects on exports to more distant destinations. These findings support the interpretation that cross-border patents are mainly used to protect cost and/or quality innovations from being adopted by producers of competing products in the patent-granting country.
    Keywords: F10; F13; F14; O34; K33
    JEL: F10 F13 F14 K33 O34
    Date: 2019–03–03

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