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on Law and Economics |
| By: | Alain Marciano (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, UM - Université de Montpellier) |
| Abstract: | In this paper, we study the impact of altruism on an interaction between a samaritan and a recipient/parasite in the frame of Buchanan's samaritan's dilemma (1975). We show that, as soon as altruism reaches a certain threshold, the equilibrium of the game corresponds to the situation Buchanan called a samaritan's dilemma. We also show that the Nash equilibrium reached for these levels of altruism is a Pareto-efficient outcome. Thus, the situation Buchanan characterized as a samaritan's dilemma is not a dilemma at all. Both players are satisfied with the situation as it is and need each other, up to the point of giving birth to a sado-masochistic equilibrium. We also show that this result holds if and only if the constitutional rules are given-either the ethical rules followed by the individuals, or the form of the game. This equilibrium could be avoided if the players adopted a constitutional perspective on the situation. |
| Keywords: | Masochism,Altruism,Samaritan's dilemma,Buchanan,Exploitation,Sadism |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03683854&r= |
| By: | Leong, Kaiwen (Nanyang Technological University, Singapore); Li, Huailu (Fudan University, China); Pavanini, Nicola (Tilburg University); Walsh, Christoph (Tilburg University) |
| Abstract: | We estimate a structural model of borrowing and lending in the illegal money lending market using a unique panel survey of 1,090 borrowers taking out 11,032 loans from loan sharks. We use the model to evaluate the welfare effects of alternative law enforcement strategies. We find that a large enforcement crackdown that occurred during our sample period raised interest rates, lowered the volume of loans, increased the lenders' unit cost of harassment, decreased lender profits, and decreased borrower welfare. We compare this strategy to targeting borrowers and find that targeting medium-performing borrowers is the most effective at lowering lender profits. |
| Keywords: | illegal money lending, loan sharks, law enforcement, crime |
| JEL: | K42 G51 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15359&r= |
| By: | Ioana Emilia Milanovici (Dimitrie Cantemir Christian University, Bucharest, Romania) |
| Abstract: | The principle of guaranteeing the right to defense is a principle of a constitutional nature in the Romanian legislation, the right to defense representing a fundamental human right established by the international community in the most important international or regional documents. Romania lacks in what regards the guarantee of the right to defense, as evidenced by the numerous convictions at the ECHR regarding the violation of art. 6, point 3 of the European Convention on Human Rights. The inefficiency of the Romanian judicial system to ensure the defendant’s right to defense is a result of mixed factors, starting from the poor training of criminal investigation bodies, the uneven practice of courts on the application of Romanian criminal law, the unjustifiably long duration of criminal proceedings and the impossibility of the defenders to prepare an effective defense due to a limited and cumbersome access to the criminal cases pending before the Romanian courts. |
| Keywords: | right to defense, suspect, defendant, legal assistance, ECHR |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0177&r= |
| By: | Karamik, Yasemin; von Graevenitz, Kathrine |
| Abstract: | Recent evidence suggests a positive impact of air pollution on crime in large cities. We provide first evidence on the potential effect of air pollution on criminal activity using a broader set of geographical regions with lower air pollution levels. We use a unique combination of daily crime data with weather and emission records for the states of Baden-Wuerttemberg (BW) and Rhineland-Palatinate (RLP) in Germany from 2015 until 2017. We exploit the variation in air pollution which is attributable to changes in daily wind direction. We find that an increase of one standard deviation of PM10 leads to an increase in crime of 4.6%. |
| Keywords: | Air Pollution,Crime |
| JEL: | K42 Q53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22013&r= |
| By: | Daniela Collazos (Universidad de los Andes, Facultad de Economía); Leopoldo Fergusson (Universidad de los Andes, Facultad de Economía); Miguel La Rota (Crime and Justice Lab); Daniel Mejía (Universidad de los Andes, Facultad de Economía); Daniel Ortega (Latin America Development Bank - CAF, and IESA business school) |
| Abstract: | This paper evaluates the impacts of increased coordination, accountability, and leadership among teams of responsible public officials, with evidence from homicide investigations in Colombia. We randomly assigned the investigations of 66% of the 1,683 homicides occurring in Bogota, Colombia, during 2016 to a new investigation procedure emphasizing these features. We find a statistically significant 30% increase in the conviction rate in the treatment group relative to the control group. Indicators of the quality of the investigative process also improve, as well as the rate at which a formal accusation is presented before a court. Complementary findings suggest that the treatment produces well-coordinated teams that can communicate more fluently. Also, a survey of investigative team members reveal that work motivation, the extent to which they receive feedback on their performance, the pertinence and effectiveness of their roles, and the perceived quality and coordination of the team all improve under the new scheme. |
| Keywords: | Crime, Homicides, Team work, Public sector |
| JEL: | C93 D73 J45 K14 K42 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hic:wpaper:342&r= |
| By: | Andrés Barrios Fernández; Jorge Garcia-Hombrados |
| Abstract: | Rehabilitating convicted criminals is challenging; indeed, an important share of them return to prison only a few years after their release. Thus, finding effective ways of encouraging crime desistance, particularly among young individuals, has become an important policy goal to reduce crime and incarceration rates. This paper provides causal evidence that the local institutions of the neighborhood that receives young individuals after prison matter. Specifically, we show that the opening of an Evangelical church reduces twelve-months re-incarceration rates among property crime offenders by more than 10 percentage points. This effect represents a drop of 16% in the probability of returning to prison for this group of individuals. We find smaller and less precise effects for more severe types of crime. We discuss two classes of mechanisms that could explain our results: religiosity and social support. We provide evidence that the social support provided by evangelical churches is an important driver of our findings. This suggests that non-religious local institutions could also play an important role in the rehabilitation of former inmates. |
| Keywords: | crime desistance, recidivism, religion |
| Date: | 2021–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1769&r= |
| By: | Amirapu, Amrit; Asadullah, M Niaz; Wahhaj, Zaki |
| Abstract: | In developing countries, one in four girls is married before turning 18, with adverse consequences for their own and their children's human capital. In this paper, we investigate whether laws can affect attitudes and behaviour towards child marriage - in a context in which the laws are not strictly enforced. We do so using a randomised video-based information intervention that aimed to accelerate knowledge transmission about a new child marriage law in Bangladesh that introduced harsher punishments for facilitating early marriage. Follow-up surveys documented an increase in early marriage among treated households if the father or family elders received the information. The findings allow us to distinguish between two competing theoretical channels underlying the effect of legal change and highlight the risk of backlash against laws that contradict traditional norms and practices. |
| Keywords: | age of marriage,social norms,formal institutions,legal change |
| JEL: | J12 J16 K36 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1107&r= |
| By: | Dragos Lucian Radulescu (Petroleum Gas University of Ploiești, Romania) |
| Abstract: | Discrimination in legal employment relationships means that an employer applies differential treatment as a result of the non-recognition of protected criteria established in the applicable legislation, with the effect of restricting or suppressing the use or exercise of employees’ rights. The article analyses discrimination on the grounds of religion and belief, with reference to the European and national legal framework, and contains elements of case law on the subject. Discrimination entails imposing differentiations between employees, usually in comparable situations, but also applying the same treatment to employees, even though they have different roles in the work process, with similar effects in terms of denying them their rights. Opinions are included on the right of employers to objectively justify their conduct, the exceptions allowed to certain organizations, and the role of European courts in the evolution of the regulatory framework. |
| Keywords: | discrimination, rights, criteria, religion, institutions |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0180&r= |
| By: | Perrotta Berlin, Maria (Stockholm Institute of Transition Economics); Campa, Pamela (Stockholm Institute of Transition Economics); Paltseva, Elena (Stockholm Institute of Transition Economics); Krumina, Marija (Baltic International Centre for Economic Policy Studies (BICEPS)); Pluta, Anna (Baltic International Centre for Economic Policy Studies (BICEPS)); Shpak, Solomiya (Kyiv School of Economics (KSE)) |
| Abstract: | A large literature, that received further momentum during the Covid-19 pandemic, evaluates legislative initiatives to combat domestic violence. For legislation to induce a reduction in crime, information and awareness among the population are in many cases necessary. This study investigates the factors that correlate with awareness and support for domestic violence legislation in three countries that introduced recent reforms. We find that men, younger cohorts, married and less educated people are less well-informed, as well as minority language speakers. Studies of legislation awareness are important to motivate and target information campaigns. |
| Keywords: | Domestic violence; legislation awareness; reforms; norms |
| JEL: | D83 D91 J12 K14 |
| Date: | 2022–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hasite:0058&r= |
| By: | Nicole Fortin; Thomas Lemieux; Neil Lloyd |
| Abstract: | This paper uses two complementary approaches to estimate the effect of right-to-work (RTW) laws on wages and unionization rates. The first approach uses an event study design to analyze the impact of the adoption of RTW laws in five U.S. states since 2011. The second approach relies on a differential exposure design that exploits the differential impact of RTW laws on industries with high unionization rates relative to industries with low unionization rates. Both approaches indicate that RTW laws lower wages and unionization rates. Under the assumption that RTW laws only affect wages by lowering the unionization rate, RTW can be used as an instrumental variable (IV) to estimate the causal effect of unions on wages. In our preferred specification based on the differential exposure design, the IV estimate of the effect of unions on wages is 0.35, which substantially exceeds the corresponding OLS estimate of 0.16. This large wage effect suggests that RTW may also directly affect wages due to a reduced union threat effect. |
| JEL: | J31 J51 J83 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30098&r= |
| By: | Vlad Mihai Dorel (Dimitrie Cantemir Christian University of Bucharest, Romania) |
| Abstract: | In order to receive and validly register complaints, it is mandatory to provide the identification data of the complained operator or of the authorized person complained, such as name and surname, address/headquarters, or at least of the available information held by the petitioner, in order to identify them. Complaints sent are signed in handwriting or electronically, and in the case of petitions sent electronically that cannot be signed, ANSPDCP may request confirmation of the correctness of the data transmitted electronically. |
| Keywords: | the protection of individuals, personal data, prejudice, administrative or judicial remedies, supervisory authority |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0155&r= |
| By: | Shubhangi Agrawal; Tom Kirchmaier; Carmen Villa-Llera |
| Abstract: | We analyse how crime trends evolved during the Covid-19 pandemic leveraging public data on local crimes. Police have recorded fewer crimes overall during the pandemic, and the decrease is driven by a large decrease in acquisitive offences. Except for online fraud, crimes in which offenders obtain a material gain - such as burglary or theft - are now less common than pre-Covid. This trend is likely to remain, as more people work from home and shop online. Violent crimes, which have been on the rise since 2014, remain at very high levels and did not decrease because of the pandemic. Public order offences (incidents in which offenders cause public fear, alarm, or distress) have also accelerated since Covid began. We also show that the pandemic has not decreased crimes uniformly. Some areas (37 per cent) had more crimes in 2021 than during the same period in 2019. Unemployment and lower educational attainment appear to be key characteristics of areas that had higher crimes in 2021. |
| Keywords: | Covid-19, Crime |
| Date: | 2022–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcvd:cepcovid-19-027&r= |
| By: | Bogdan David (Dimitrie Cantemir Christian University of Bucharest, Romania,) |
| Abstract: | The present study brings to the attention of specialists in the field of legal sciences the inaccuracies of the decisions with identity of object to the Constitutional Court of Romania and the decadent consequences that they create. We also want to emphasize that the decisions of this high legal institution must harmonize from a legal point of view, judicial practice and the doctrine of this field in relation to multiple situations and not isolated legal situations, because it can create erratic and palliative situations that may have negative consequences on the Romanian criminal legislation |
| Keywords: | decisions, Romanian Constitutional Court, exception of unconstitutionality, inconsistencies |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0146&r= |
| By: | Comisión Nacional de los Mercados y la Competencia (CNMC) (Comisión Nacional de los Mercados y la Competencia (CNMC)) |
| Abstract: | The study analyzes the competitive conditions in the online advertising sector in Spain and offers a series of recommendations to improve the functioning of this market from the perspective of competition and efficient regulation. Online advertising is key to competition as it allows advertisers to reach their consumers. It is also the main source of funding for content on the Internet and is one of the most important revenue streams for large digital platforms. A more competitive functioning of the advertising industry will help start-ups and innovators to better communicate their messages. This would increase the efficiency of the whole economy. |
| Keywords: | Competition, Online advertising, Digital advertising, Digitization, Data, Regulation |
| JEL: | L40 K21 L82 L86 |
| Date: | 2021–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:awo:epaper:e/cnmc/002/2019_eng&r= |
| By: | Earnhart, Dietrich; Germeshausen, Robert; von Graevenitz, Kathrine |
| Abstract: | Information-based policies play an important role in environmental protection efforts around the world. These policies use information provision and/or disclosure to shape behavior in order to meet the policy objective; for example, mandatory information disclosure requires firms to measure and report their pollutant emissions. This study investigates the influence of a particular information-based policy - the European Union's mandatory and public emission registry of polluting facilities - on financial outcomes of German firms: revenues, costs, and profits. Using detailed firm-level data for the years 1998 to 2016, we exploit size- and pollution-specific reporting thresholds to isolate the effect of this policy. We compare firms that own facilities required to report in the first EPER wave with similar firms that do not own such facilities. For this comparison, we deploy both a difference-in-differences design and an event study. Our findings suggest that the introduction of EPER in 2001 increased both operating revenues and expenditures, yielding a neutral impact on the operating profits of affected firms. These results support neither of the two competing hypotheses regarding financial outcomes: costly regulation hypothesis and Porter Hypothesis. |
| Keywords: | Information-based Regulation,Environmental Policy,Financial Performance,Porter Hypothesis |
| JEL: | K32 L21 O31 Q52 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22015&r= |
| By: | Cristian Dan (Dimitrie Cantemir Christian University of Bucharest, Romania) |
| Abstract: | There are often situations in which criminal cases are being tried, in which, for some objective reason, the judges of those cases cannot continue their investigations in order to resolve the legal conflict. Some of the most common such situations are those in which judges in a particular constituency draw suspicion of impartiality as to the fair, impartial and impartial trial of the criminal case before which they are to rule. Because the Romanian legislator also provided for such events that may seriously affect the performance of justice on a fair basis as provided by the Romanian Constitution, he created the institutional mechanism for transferring criminal cases from one court to another that can apply the law as provided. The article aims to briefly analyze the cases that may lead to the conclusion that a court on the territory of Romania is in a position to no longer be able to carry out, in good conditions, the act of administering justice, the legal aspects by which a criminal proceeding may be transferred from one court to another and the rules under which a subject of criminal proceedings may have recourse to such criminal proceedings. Some conclusions at the end of the paper will aim at a concise understanding of the notions presented throughout the paper. |
| Keywords: | case transfer, criminal law, criminal case, impartiality, subjects of criminal proceedings, criminal courts, procedural issues, justice |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0171&r= |
| By: | Laszlo Goerke (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University) |
| Abstract: | This contribution surveys theoretical analyses of tax evasion by firms. It uses a simple model in which the firm determines economic activity and the under-declaration of the tax base to integrate various approaches into a coherent analytical framework. Initially, the chapter characterises the basic features of the firm's decision. Subsequently, it considers the effects of firm-size heterogeneity, restrictions on evasion behaviour, the co-existence of tax evasion with other illegal activities, output market interactions, non-profit objectives, and corporate governance issues. |
| Keywords: | Firm, Tax Avoidance, Tax Evasion |
| JEL: | H25 H26 K34 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:iaa:dpaper:202201&r= |
| By: | Aditya Kuvalekar; João Ramos; Johannes Schneider |
| Abstract: | Agents, some with a bias, decide between undertaking a risky project and a safe alternative based on information about the project's efficiency. Only a part of that information is verifiable. Unbiased agents want to undertake only efficient projects, while biased agents want to undertake any project. If the project causes harm, a court examines the verifiable information, forms a belief about the agent's type, and decides the punishment. Tension arises between deterring inefficient projects and a chilling effect on using the unverifiable information. Improving the unverifiable information always increases overall efficiency, but improving the verifiable information may reduce efficiency. |
| Keywords: | deterrence, chilling effect, screening |
| JEL: | D01 K13 L51 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2022_357&r= |
| By: | Meissner, Luise; Musshoff, Oliver |
| Abstract: | Farmland market regulation and the respective political instruments are very present in the current discussion, especially since the market faces big price increases. In the European Union, several instruments exist. The evaluation and discussion of those instruments is complex and shaped by subjective arguments. Not only are their utility for the society questioned, but also their accuracy and efficiency. Within those points, different concerned parties might have a different focus and different requirements to the regulation instruments. In this article, we intend to enrich and structure the discussion about farmland market regulation. We present an analytical framework for arguments and parties within farmland market regulation. As an example, the German land transaction law is broken down by process, parties and arguments. The framework allows to weight arguments individually. It implicates two results: First, considers conflicting interests in a clear form. Second, a linear utility curve can be calculated which determines the minimum share of pre-sales right executions to achieve a positive aggregated utility. Hence, the framework is able to analyze the utility of the German farmland transaction law from different perspectives. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc22:321157&r= |
| By: | Dimitrova, Darina |
| Abstract: | The aim of this article is to examine the new moments in the legal framework and in particular the transposition of the European norms in the sphere of control of compliance with labour legislation in Bulgaria. The practical necessity of the analysis of the control of compliance with labour rights stems from the main objective of this control activity - namely, ensuring the lawful development of labour relations. It is possible only with the actual implementation and strict compliance with labour legislation. The topic is determined by the importance of the issues concerning the legal framework for compliance with labour rights in accordance with the commitments arising from Bulgaria's EU membership. During the research inductive, deductive and descriptive-analytical methods of generalization were applied. In conclusion and as a result of the research, conclusions, summaries and recommendations are made regarding the applicable legislation concerning the issues under consideration. |
| Keywords: | labour legislation; administrative control; European Union law; Administrative Law |
| JEL: | K23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113325&r= |
| By: | Estrada, Ricardo; Lombardi, María |
| Abstract: | This paper studies the impact of high dismissal protection on bureaucratic turnover and productivity in the context of public school teachers in Chile. We take advantage of a law that required education administrators to grant a permanent contract to temporary teachers with a minimum seniority and implement a difference-in-differences strategy comparing eligible and ineligible teachers. We find that high dismissal protection reduces turnover by 25 percent in the first two years. The reduction is only statistically significant among teachers at the bottom and top of the distribution of baseline performance. We then examine the impact on teacher productivity and find a significant decline in the learning of students taught by teachers with low baseline performance. These findings are consistent with the hypothesis that high dismissal protection can be a double-edged sword. It can help to retain high-performing employees, but at the cost of making it more difficult to separate and motivate low-performing employees. |
| Keywords: | Desempleo, Docentes, Educación, Sector público, |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dbl:dblwop:1915&r= |