nep-law New Economics Papers
on Law and Economics
Issue of 2020‒02‒03
twelve papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. The economics of international competition policy: New challenges in the light of digitization? By Budzinski, Oliver
  2. Electoral Crime Under Democracy: Information Effects from Judicial Decisions in Brazil By Andre Assumpcao
  3. Tort Liability By Valentina Avramescu
  4. The Tactic of Executing Searches By Marilena Cristina Chera
  5. Mandatory Private Treaty Application? On the Alleged Duty of Arbitrators to Apply International Conventions By Schroeter, Ulrich G.
  6. Theoretical and Practical Provocations of the New Romanian Personal Insolvency Proceedings By Bogdan Radu
  7. Non-Delimitation of Incompetency Denotations in Jurisprudence and Law and the Contradiction of some of its Titles to the Law on Non-Litigious Matters By Niknamian, Sorush
  8. Consumer Protection in an Online World: An Analysis of Occupational Licensing By Chiara Farronato; Andrey Fradkin; Bradley Larsen; Erik Brynjolfsson
  9. Executive Absolutism: A Model By Howell, William; Shepsle, Kenneth; Wolton, Stephane
  10. Particularities of an Effective Playground – Related Accident Investigation By Ioana Alexandra Curca
  11. Can the Hybridity of Law and Finance Save Central Banking in a Zero-Lower Bound Recession? A Money and Legal View By Saeidinezhad, Elham; Hovhannisyan, Tatev
  12. Populating the Handbook on Governance Statistics with Empirical Evidence: Illustrations from the GPS-SHaSA survey modules in Africa By Yvan Andriameva Assany; Mireille Razafindrakoto; François Roubaud

  1. By: Budzinski, Oliver
    Abstract: The International Competition Network (ICN) celebrates its 20th birthday in 2020. It governs global competition by providing a cooperative forum for (mostly national) competition authorities from all around the world. In the absence of binding global competition rules and antitrust laws, it attempts to coordinate national and supranational competition policies by providing best practice recommendations and exercising peer pressure on deviating regimes. While the first twenty years of the ICN have been mostly a success story, the ubiquitous process of digitization poses new challenges to the voluntary and informal coordination of decentralized competition policies governing pro- and anticompetitive arrangements and conduct on international and intercontinental markets. First, the digitization of markets and goods increases the number of cross-border, interjurisdictional cases regarding cartels, mergers and acquisitions, as well as anticompetitive market behavior. Second, digital platforms and data-based business models increase the probability of dominant companies on intercontinental scales as well as problems of economic dependency on few global player companies. Third, the economics of digital platforms and data-based competition strategies partly differ from traditional standard economics and are still being developed in the academic world. Consequently, the previous convergence of competition policy practices across jurisdictions tends to shift towards a process of divergence with respect of how to deal with innovative pro- and anticompetitive conduct in the digital world. This essay discusses the influence of the effects from digitization on the problems of (only soft-coordinated) national competition policies in international markets like cross-border externalities, costs and burden of multiple procedures, loopholes in the protection of global competition, and the diversity of societies and competition regimes. It concludes by outlining the challenges that the ICN will face in its third decade.
    Keywords: international competition policy,international antitrust,International Competition Network,global governance,digitization,industrial economics,law and economics,international economics,international organizations,international business
    JEL: F02 F53 F55 K21 L40
    Date: 2020
  2. By: Andre Assumpcao
    Abstract: This paper examines voters' responses to the disclosure of electoral crime information in large democracies. I focus on Brazil, where the electoral court makes candidates' criminal records public before every election. Using a sample of local candidates running for office between 2004 and 2016, I find that a conviction for an electoral crime reduces candidates' probability of election and vote share by 10.3 and 12.9 percentage points (p.p.), respectively. These results are not explained by (potential) changes in judge, voter, or candidate behavior over the electoral process. I additionally perform machine classification of court documents to estimate heterogeneous punishment for severe and trivial crimes. I document a larger electoral penalty (6.5 p.p.) if candidates are convicted for severe crimes. These results supplement the information shortcut literature by examining how judicial information influences voters' decisions and showing that voters react more strongly to more credible sources of information.
    Date: 2019–12
  3. By: Valentina Avramescu (“Dimitrie Cantemir†Christian University of Bucharest, Bucharest, Romania)
    Abstract: The object of this paper is the tort liability, which represents an important element of the legal relationships. This paper refers at the legal regulation of the tort liability, as well as its scope. This paper also refers at the two types of liability, representing the general liability that we find in the civil law, which is the relation between the tort liability and the contractual liability. This paper also presents the comparison between the tort liability and the criminal liability, as well as the relation between the tort liability and the patrimonial liability specific to the labour law. We shall speak of the types of tort liability and their classification, referring at the hypotheses regulated by the Civil Code and the related legislation, as well as of the criterion of the fundamental principle of liability.
    Keywords: criminal liability, contractual liability, patrimonial liability, tort liability, unlawful act
    Date: 2019–11
  4. By: Marilena Cristina Chera (Master in Criminal Sciences at Dimitrie Cantemir Christian University of Bucharest, Romania)
    Abstract: The information technology search became one of the investigation ways often met in practice and that is due to the numerous crime, such as corporate crimes or corruption crimes that can be executed through the information technology systems. The ways of crimes found in the information technology crime are carried out by attacks over the information networks and systems. It must be noted that the information technology crimes are not grouped together under one title/chapter, but those are found either in the crimes against property, forgery crimes, and also in the area of crimes against public safety. The ways of executing such are found in most of the information technology crimes. Most of the cases of information technology crimes, the search on the information system, used for executing the crime, might bring out the most important pieces of evidence with the purpose of proving the causal link between the material element and the immediate result of the crime.
    Keywords: crime, defendant, evidence, information technology, search
    Date: 2019–11
  5. By: Schroeter, Ulrich G. (University of Basel)
    Abstract: International arbitration, an institution that Pierre Karrer has shaped and influenced through his practical work as a leading international arbitrator as well as through his scholarly writings, aims at the peaceful settlement of disputes by practical, foreseeable and reasonably fast decisions, thereby eventually serving the development of international trade. The creation of uniform commercial law by way of international conventions is driven by a very similar aim, namely the removal of legal barriers in and the promotion of the development of international trade through the adoption of uniform rules governing international contracts. International arbitration and uniform law conventions generally act in a complementary manner by following reasonably consistent policy norms, one as a means of international dispute settlement, the other by creating an international ‘level playing field’ in the law governing the merit of disputes.
    Date: 2017–12–12
  6. By: Bogdan Radu (Dimitrie Cantemir Christian University of Bucharest, Faculty of Judicial and Administrative Sciences, Romania)
    Abstract: The legal framework that acknowledges personal insolvency in Romania has finally been adopted on 18 June 2015, after more than 25 years of hardships for the consumers, and only took effect, after many delays, on 1 January 2018. This paper aims to present what is meant to be a procedure that protects the consumers that contracted obligations and by no means of their fault are not able to cover their debts. Furthermore, of great importance is the analysis of the particularities of the Romanian procedure by comparing to similar procedures of other jurisdictions.
    Keywords: consumer protection, debt, Insolvency
    Date: 2019–11
  7. By: Niknamian, Sorush
    Abstract: “Incompetency” literally means prohibition and it is commonly used to point to an individual being deprived of his rights to take possession of his properties and his financial rights by the law. And, in other words, the incompetents are the individuals that do not possess “the legal capacity to enjoy a certain right” and are deprived from taking possession of their properties and if such a taking possession of the properties by an incompetent occurs, it is invalid and cannot take effect.In the legal system of Islam, the individual with a sort of a disease that features certain types of conditions leading to the weakness of the mind or insanity is called an incompetent. But the example cases of the incompetent and incompetency have not been delimited in the jurisprudence and law. Thus, the investigation of the instruments of incompetency from the perspective of the jurisprudential texts and the statutory provisions via offering an assumption indicating the non-delimitation of the incompetency instruments scope has resulted in conflicts in the non-litigious affairs law with the civil procedure, the necessity to rethink the causes of insanity as one instrument of incompetency in the civil law, the centrality of the incompetency for its setting the ground for the exertion of the law and the non-litigious affairs regulations as well as the incompetency of some patients with nervous diseases like hysterical conversion and dissociative hysteria and so forth. Therefore, conceptualizing the incompetency, the present study aims at assessing, then criticizing and investigating, the proofs offered by the proponents and the opponents of the incompetency of the patients with hysteria so as to consequently conclude an assumption regarding the hysteric patients’ incompetency and the relevant contradictions, if any, with the non-litigious matters law and civil procedure.
    Date: 2019–12–31
  8. By: Chiara Farronato; Andrey Fradkin; Bradley Larsen; Erik Brynjolfsson
    Abstract: We study the effects of occupational licensing on consumer choices and market outcomes in a large online platform for residential home services. We exploit exogenous variation in the time at which licenses are displayed on the platform to identify the causal effects of licensing information on consumer choices. We find that the platform-verified licensing status of a professional is unimportant for consumer decisions relative to review ratings and prices. We confirm this result in an independent consumer survey. We also use variation in regulation stringency across states and occupations to measure the effects of licensing on aggregate market outcomes on the platform. Our results show that more stringent licensing regulations are associated with less competition and higher prices but not with any improvement in customer satisfaction as measured by review ratings or the propensity to use the platform again.
    JEL: J2 J44 K2 L15 L51 L88
    Date: 2020–01
  9. By: Howell, William; Shepsle, Kenneth; Wolton, Stephane
    Abstract: Separated powers cannot permanently constrain individual ambitions. Concerns about a government's ability to respond to contemporary and future crises, we show, invariably compromise the principled commitments one branch of government has in limiting the authority of another. We study a dynamic model in which a politician (most commonly an executive) makes authority claims that are subject to a hard constraint (administered, typically, by a court). At any period, the court is free to rule against the executive and thereby permanently halt her efforts to acquire more power. Because it appropriately cares about the executive's ability to address real-world disruptions, however, the court is always willing to affirm more authority. Neither robust electoral competition nor alternative characterizations of judicial rule fundamentally alters this state of affairs. The result, we show, is a persistent accumulation of executive authority.
    Keywords: Authority, Executive Growh, Judicial Decision, Separation of Power, Federalist
    JEL: C73 D02 D70 D72 H11 K39
    Date: 2020–01–16
  10. By: Ioana Alexandra Curca (Dimitrie Cantemir Christian University of Bucharest, Bucharest, Romania,)
    Abstract: Establishing the circumstances of an accident is essential in determining the elements that provide an adequate analysis of legal classification as well as in identifying any criminal liability and form of guilt. Therefore a conclusion regarding culpability should be based on whether the material evidence can accurately indicate the circumstances of the accident, especially when all measures regarding the safety of the play environment and the conformity of the equipment’s have been complied with.
    Keywords: accident, child, culpability, investigation, playground
    Date: 2019–11
  11. By: Saeidinezhad, Elham; Hovhannisyan, Tatev
    Abstract: As the U.S. experience revealed after the Global Financial Crisis (GFC), zero lower bound (ZLB) limits the Fed's capacity to stimulate the economy through conventional methods of monetary policy. The GFC provided a chance to advance unconventional tools to strengthen economic growth and reclaim financial stability. One of the aims of the existing unconventional tools has been to provide liquidity to the banks. To account for the dynamic reality of the financial ecosystem, we propose two new instruments through which the Fed targets nonbank securities dealers and debt issuers explicitly. By design, these tools should be used as last resort options. The first tool called the "Dealer Option" and functions by opening the Fed's balance sheet to securities dealers to increases liquidity in the market. The second tool, "Elastic Legal Policy," suggests relaxing legal constraints in debt securities contracts during the financial crisis to reduce debt issuers' default risks. Given the interconnectedness of balance sheets and cash flows as well as the role of securities dealers as market makers, the elastic legal policy and dealer option help reduce debtors' defaults and liquidity risk during a financial crisis.
    Keywords: Financial Crisis, Financial Stability, Central Banking, Debt Securities
    JEL: E52 E58 G01 G21 G23 G24 K0 K22
    Date: 2019–12–19
  12. By: Yvan Andriameva Assany (DIAL-LEDa, IRD, Université Paris-Dauphine, PSL Université); Mireille Razafindrakoto (DIAL-LEDa, IRD, Université Paris-Dauphine, PSL Université); François Roubaud (DIAL-LEDa, IRD, Université Paris-Dauphine, PSL Université)
    Abstract: The 2030 Agenda and the transition from the MDGs to the SDGs focus on the quality of institutions, governance, peace and security (GPS). This renewed interest drove a pressing need for measurement, monitoring and evaluation in developing countries and rich countries. Such are the aims of SDG16 at global level and Agenda 2063 (Aspirations 3 and 4) in Africa. This working paper describes and analyses eight dimensions of governance drawn from GPS-SHaSA initiative household surveys “Governance, Peace and Security” in nine Sub-Saharan African countries. Those dimensions are: Non-discrimination and equality; Participation in political and public affairs; Openness; Access to and quality of justice; Responsiveness and satisfaction with services; Absence of corruption; Trust in institutions; Safety and security. This document helps populating with empirical evidence the UN Handbook on governance statistics, developed under the auspices of the Praia Group on Governance Statistics.
    Keywords: Sustainable Development Goals (SDGs), Governance, Peace, Security, Indicators, Statistics, Households surveys, Sub-Saharan Africa, Objectifs de Développement Durable (ODD), Gouvernance, Paix, Sécurité, Indicateurs, Statistiques, Enquêtes ménages, Afrique Sub-Saharienne.
    JEL: A33 C21 D02 D63 D71 D72 D73 D74 H56 K41
    Date: 2019–12

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