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on Law and Economics |
| By: | Apevalova Elena (Gaidar Institute for Economic Policy); Polezhaeva Natalia (RANEPA) |
| Abstract: | In recent years, an important trend in the evolvement of Russia’s legislation has been the increasing level of responsibility of companies’ CEOs and controlling entities as a result of the introduction, in 2017, of a new chapter in the Law “On Insolvency (Bankruptcy)†, titled “Responsibility of the debtor’s CEO and other individuals and entities in a bankruptcy case†, and the subsequent rapid increase in the number of cases where the latter were brought to subsidiary liability. Within the framework of that chapter, additional (subsidiary) liability of a company’s CEO and the individuals and entities controlling the company is envisaged; the latter can be recognized to be the those who (both individuals and legal entities) for not more than 3 years prior to the emergence of signs of bankruptcy (as well as after their emergence and prior to the receipt, by an arbitration court, of the petition concerning the recognition of the debtor to be bankrupt), had enjoyed the right to issue to the debtor instructions that the latter was obliged to implement, or had had “the ability to otherwise determine the actions of the debtor, including the execution of transactions and the determination of their terms†. |
| Keywords: | Russian economy, corporate governance, bancruptcies |
| JEL: | I18 I19 G32 G33 G34 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2022-1212&r= |
| By: | Wolfgang Bretschneider; Andreas Freytag; Johannes P. Rieckmann; Tim H. Stuchtey |
| Abstract: | The issue of internal security has become increasingly complex over the past decades. As there is an increasing overlap between private and public provision of security, the question of how to allocate responsibility for security between the public sphere (state) and the private sphere has become important. The literature suggests that this question cannot be answered based on a simple private vs. public binarity. Concepts that can provide both clarity and sufficient complexity are much needed. This article offers an institutional economics concept based on the difference between provision and production, and discusses selection criteria for public vs. private provision, and production of protection services at three different stages: punishment as deterrence; patrol services; and self-defence. What stands out is that a unique characteristic of the economic good ‘protection service’ is of particular relevance for the level of provision as well as of production: the potential repressivity. |
| Keywords: | protection, privatisation of security, homeland security, civil security, economics of security, public good, publicly provided good, security industry |
| JEL: | H41 H42 K42 L33 L51 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9849&r= |
| By: | Yassine Lefouili (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Leonardo Madio (Universita degli Studi di Padova) |
| Abstract: | Public authorities in many jurisdictions are concerned about the proliferation of illegal content and products on online platforms. One often discussed solution is to make the platform liable for third parties' misconduct. In this paper, we first identify platform incentives to stop online misconduct in the absence of liability. Then, we provide an economic appraisal of platform liability that highlights the intended and unintended effects of a more stringent liability rule on several key variables such as prices, terms and conditions, business models, and investments. Specifically, we discuss the impact of the liability regime applying to online platforms on competition between them and the incentives of third parties relying on them. Finally, we analyze the potential costs and benefits of measures that have received much attention in recent policy discussions. |
| Keywords: | Liability rules,Online platform,Illegal content and products,Intellectual property |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03711652&r= |
| By: | Wolfgang Maennig (Chair for Economic Policy, University of Hamburg); Stefan Wilhelm (Chair for Economic Policy, University of Hamburg) |
| Abstract: | We examine the short- and medium-term effects of announcements of changes in anti-crime policies in the distant future (news shocks) and provide a first extension of the analysis to cases where the announced policy changes may not be realized in the end (noise shocks). We further innovate by analyzing the effects of policy changes that increase the variance while holding the expected values of policy instruments constant. We confirm that news shocks can bring about immediate changes in delinquency. However, announcements of tighter anti-crime policies may even increase delinquent activities, at least temporarily. In the case of noise shocks, we observe persistent reactions of potential offenders, indicating that a credible communication strategy may generate an impact on crime politics. Finally, increasing the variance of policy instruments without changing the mean expected detection rate may have similar effects. |
| Date: | 2022–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:hce:wpaper:072&r= |
| By: | Zuzana Smidova; Agnès Cavaciuti; Jesper Johnsøn |
| Abstract: | The OECD’s new Public Integrity Indicators offer a credible alternative to existing corruption-related indices, as they draw directly on data from member countries instead of expert views. The indicators unpack the general notion of corruption into specific integrity risks and measure the strength of regulations, institutions and practices. A first data set published for 36 countries – on the quality of strategic framework - shows that OECD’s recommended whole-of-society approach to curbing the most serious and detrimental forms of corruption such as undue influence, political and grand corruption – has not yet been translated into concrete policy objectives at the national level. High-level strategic objectives addressing such forms of corruption are missing in many countries. In countries that do set strategic objectives to curb corruption, implementation is weak. Development of integrity and anti-corruption strategies should be more transparent and inclusive. |
| Keywords: | anti-corruption, corruption, experience of corruption, OECD, perceived corruption, policy indicators, public integrity, quality of strategic framework for public integrity |
| JEL: | D72 D73 H83 K42 P16 |
| Date: | 2022–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1725-en&r= |
| By: | Diego Legal; Eric R. Young |
| Abstract: | We use cross-state differences in minimum wage (MW) levels and county-level consumer bankruptcy rates from 1991-2017 to estimate the effect of changes in minimum wages on consumer bankruptcy by exploiting policy discontinuities at state borders. We find that Chapter 7 bankruptcy rates are significantly lower in counties belonging to states with higher MW compared to neighboring counties in the lower MW state: a 10 percent increase in MW decreases the bankruptcy rate by around 4 percent. Before the 2005 bankruptcy reform, this effect was almost twice as large as for the entire sample. Theoretically, we cannot sign the effect of MW on bankruptcy and credit utilization; we use a stylized consumption/saving model with default to illustrate the dependence on particular parameters and to provide intuition on how to interpret our results. |
| Keywords: | Consumer bankruptcy; unsecured credit; minimum wage |
| JEL: | K35 J30 J38 E24 E44 |
| Date: | 2022–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:94580&r= |
| By: | Kurdoglu, Berkay; Yucel, Eray |
| Abstract: | In this article, we propose a new empirical screen for detecting cartels, using the cointegration as our basis of modeling. The proposed screen is capable of identifying potential cartel behavior, indicating the strength of price adjustment among firms, and providing a basis for assessing structural change. The screen is applied to the Turkish cement market for an initial demonstration of use; we obtain promising results. |
| Keywords: | Antitrust; Cartel; Detection; Empirical screen |
| JEL: | D43 L41 |
| Date: | 2022–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113888&r= |
| By: | Guillermo Hernández (OECD); Miguel Amaral (OECD) |
| Abstract: | This working paper presents two case studies of agile regulatory governance focusing, respectively, on civilian drones and bio-solutions (i.e. the use of renewable bio-resources for industrial scale production, for example with a view to creating alternatives to petro-based and chemical products). Each of the case studies looks at the main transformative impacts of the innovations at hand as well as the associated regulatory challenges and responses. They complement a compilation of Case Studies on the Regulatory Challenges Raised by Innovation and the Regulatory Responses developed jointly between the OECD and the Korean Development Institute (2021) and provide further evidence to support the implementation of the OECD Recommendation for Agile Regulatory Governance to Harness Innovation. |
| Keywords: | Agile regulation, Better Regulation, innovation, Regulatory governance, Regulatory policy |
| JEL: | D7 K00 K2 L5 L51 L98 O1 O33 O38 L65 |
| Date: | 2022–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaah:18-en&r= |
| By: | Alessandra Foresta |
| Abstract: | This article evaluates the impact of politically independent jurors on trial verdicts in the US state of North Carolina. To identify the effect of jurors' political affliations, I rely on the day-to-day random variation in the composition of jury pools. The results suggest that the presence of independent jurors decreases the percentage of guilty verdicts. I implement a set of robustness checks, dividing the proportion of independent jurors by gender and by ethnicgroup. The findings suggest that the effect is mainly driven by independent men, and remain negative and significant across different ethnicities. Moreover, I interact the proportion of independent jurors with the ethnicity of defendants, and I remove counties with a high/low number of trials. The results suggest that the effect is stronger for black defendants and that my findings are not driven by outlier counties. Finally, I evaluate the presence of possible political discrimination in the striking patterns. I find that there are no clear strike patterns for independent jurors, although some statistically significant strategic striking is present for Republicans and Democrats alike. |
| Keywords: | Jury, Peremptory challenges, Political Affiliation, Independent |
| JEL: | K14 K40 D72 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:22/01&r= |
| By: | Giannakopoulos, Nicholas; Nicolitsas, Daphne |
| Abstract: | We discuss the interrelationship between membership in employers' associations and the exis- tence of trade unions. The analysis is based on both aggregate data for 13 European countries for 1980{2019 and firm-level data for 12 of these countries from the European Company Survey (ECS) for 2013 and 2019. Our findings suggest that at the aggregate level there is potentially a dependence between membership in the two types of organizations despite the fact that mem- bership in the two organizations appear to respond differently to macroeconomic conditions and to different institutional parameters. The firm-level data suggest that such a dependence might exist in some countries while the two organizations simply co-exist in most countries. The firm-level analysis confirms a number of stylized facts found in other analyses; larger and longer-established firms are more likely to belong to an EA and firms enforcing a collective agreement signed outside the remit of the firm are also more likely to be members of an EA and have union presence. The analysis is fraught with difficulties as, inter alia, the evolving nature of the two types of organizations makes it more difficult to ascertain the type of co-habitation between the two. |
| Keywords: | Employers' association membership,trade union membership,institutions |
| JEL: | J51 J54 L21 K23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1140&r= |
| By: | Eberhard Feess; Gerd Muehlheusser |
| Abstract: | In unavoidable traffic accidents, autonomous vehicles (AVs) face the dilemma of protecting either the passenger(s) or third parties. Recent studies show that most people prefer AVs following a utilitarian approach by minimizing total harm. At the same time, however, they would adopt an AV only if it prioritizes the passenger(s), i.e. themselves. As AVs exhibit a lower accident risk in the first place, a regulator therefore faces a trade-off: the harm-minimizing behavior of AVs (ex post efficiency) hampers the willingness to adopt them (ex ante efficiency). Using a game-theoretic model, we analyze how the second-best optimal level of AV passenger protection depends on (i) the AV safety advantage, (ii) the intensity of drivers’ social preferences, and (iii) their reluctance to adopt AVs. A higher AV safety advantage may either increase or decrease the second best optimal level of passenger protection. |
| Keywords: | autonomous vehicles, ethical dilemma, trolley problem, adoption of new technologies, game theory |
| JEL: | O31 K23 L51 L62 R41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9825&r= |