nep-law New Economics Papers
on Law and Economics
Issue of 2023‒11‒27
eight papers chosen by
Yves Oytana, Université de Franche-Comté

  1. Maximal Fines and Corruption: An Experimental Study on Illegal Waste Disposal By Abatemarco, Antonio; Cascavilla, Alessandro; Dell’Anno, Roberto; Morone, Andrea
  2. The Nation-State Foundations of Constitutional Compliance By Grajzl, Peter; Gutmann, Jerg; Voigt, Stefan
  3. Access to guns in the heat of the moment: more restrictive gun laws mitigate the effect of temperature on violence By Jonathan Colmer; Jennifer L. Doleac
  4. Policing carbon markets By Calel, Raphael; Dechezlepretre, Antoine; Venmans, Frank
  5. A Tale of Two Committees: Comparing Police Officer Standard and Training (POST) Bodies By Monea, Nino C.
  6. Does Wage Theft Vary by Demographic Group? Evidence from Minimum Wage Increases By Clemens, Jeffrey; Strain, Michael R.
  7. Judiciary and Human Resource Management in Universities By Ghulam Mustafa; Abid Rehman
  8. Legal aid in child welfare: Evidence from a randomized trial of Mi Abogado By Ryan Cooper; Joseph Doyle; Andres Hojman

  1. By: Abatemarco, Antonio; Cascavilla, Alessandro; Dell’Anno, Roberto; Morone, Andrea
    Abstract: Corruption is known to be one of the real life situations which may jeopardize the effectiveness of fines in deterring crime. We present a model of ‘crime with corruption’ by which both the dilution of crime deterrence due to corruption, as well as the possibility of crime encouraging fines are formally highlighted. More importantly, by running an experiment on a subject pool of students for the case of illegal waste disposal, we provide experimental evidence on the validity of our theoretical predictions. We find that increasing fine rate may become crime encouraging or at least ineffective, beyond a context-specific fine threshold. In a policy perspective, we suggest that the optimal design of a crime-deterring sanctioning system must simultaneously account for both corruption practices and anti-corruption policies.
    Keywords: corruption, crime, fine, waste
    JEL: C91 H10 K14 K42 Q50
    Date: 2023
  2. By: Grajzl, Peter; Gutmann, Jerg; Voigt, Stefan
    Abstract: We bring attention to a previously overlooked determinant of de jure-de facto constitutional gaps: a polity's transition to a nation-state. We argue that nation-statehood, predicated on the formation of a strong sense of national identity, lowers the government's incentive to violate constitutional provisions. To test our theory, we use a recently released longitudinal database on constitutional compliance and exploit variation in the timing of countries' attainment of nation-statehood. Our empirical findings substantiate our hypothesis. Based on our preferred estimation approach, nation-statehood bolsters both overall constitutional compliance and constitutional compliance within the subdomains of basic rights, civil rights, and property rights & the rule of law. The estimated long-run effects of nation-statehood on constitutional compliance are considerable in size. Our analysis, thus, illuminates the foundational role of nation-statehood in fostering constitutional compliance.
    Keywords: constitutional compliance, de jure-de facto gap, nation-state, national identity, statehood
    JEL: D02 D72 K10 K42 P51 Z13
    Date: 2023
  3. By: Jonathan Colmer; Jennifer L. Doleac
    Abstract: Gun violence is a major problem in the United States, and extensive prior work has shown that higher temperatures increase violent behavior. We consider whether restricting the concealed carry of firearms mitigates or exacerbates the effect of temperature on violence. We use two identification strategies that exploit daily variation in temperature and variation in gun control policies between and within states. We provide evidence that more prohibitive concealed-carry laws attenuate the temperature - homicide relationship. Our findings are consistent with more-prohibitive policy regimes reducing the lethality of altercations.
    Keywords: right-to-carry, temperature, crime, homicide
    Date: 2023–07–13
  4. By: Calel, Raphael; Dechezlepretre, Antoine; Venmans, Frank
    Abstract: Carbon markets have emerged in recent decades as one of the most important tools for curbing industrial greenhouse gas emissions, but they present a number of novel enforcement challenges as compared to more conventional pollution regulations—new regulators with narrow authority, lack of legal precedent, and more. To shed light on the practical issues involved in policing carbon markets, we present the first comprehensive analysis of the EU Emissions Trading System, a single program that was policed by 31 different national regulators. We find generally high rates of compliance coupled with low rates of enforcement, a pattern that is known in the literature as ‘Harrington’s paradox.’ Variation in the probability and severity of fines explain just one tenth of the variation in compliance rates. Meanwhile, other enforcement strategies that have been pointed to as resolutions to Harrington’s paradox in other applications, such as ‘naming and shaming, ’ appear to have had little discernible effect.
    Keywords: pollution control; compliance; enforcement; cap-and-trade
    JEL: Q50 Q52 C14
    Date: 2023–09–13
  5. By: Monea, Nino C.
    Abstract: Every state has a Police Officer Standards and Training (POST) body responsible for credentialling law enforcement, and usually, decertifying them for misconduct. Oregon and Kansas are outliers in that they share disciplinary decisions online. This Article examines 400 decisions from the two states—every decision available as far back as records go through the end of 2022—to analyze how these agencies operate in practice. It finds that, much like other police oversight bodies, these POSTs often fail to hold officers to account or act transparently. Even so, state POSTs have an important role to play in protecting the public and maintaining high standards, and policy recommendations are made based on the review of these cases. Among them: greater transparency, better data collection, and strengthening POSTs.
    Date: 2023–11–03
  6. By: Clemens, Jeffrey (University of California, San Diego); Strain, Michael R. (American Enterprise Institute for Public Policy Research)
    Abstract: Using Current Population Survey data, we assess whether and to what extent the burden of "wage theft" - wage payments below the statutory minimum wage - falls disproportionately on various demographic groups following minimum wage increases. For most racial and ethnic groups at most ages we find that underpayment rises similarly as a fraction of realized wage gains in the wake of minimum wage increases. We also present evidence that the burden of underpayment falls disproportionately on relatively young African American workers and that underpayment increases more for Hispanic workers among the full working-age population.
    Keywords: minimum wage, subminimum wage, compliance, noncompliance, enforcement, underpayment
    JEL: J08 J38 K42
    Date: 2023–10
  7. By: Ghulam Mustafa (Pakistan Institute of Development Economics); Abid Rehman (Pakistan Institute of Development Economics)
    Abstract: While we pay homage to human capital and development, human resource management which is how human capital is used in organizations remains subject to outmoded rule enforced by courts without contextual knowledge. Pakistan’s public sector universities have no exception in experiencing conflict or disputes between faculty and administration. Failing to resolve conflict internally, one party drags the matter in civil courts to superior judicial forums such as the high court, and Supreme Court, etc. Also, In the case of Pakistan, due to ineffective judicial accountability, judicial system, and complex service structure, court takes the cases without have proper penalty mechanism after provision of testimony by HR experts for the loser party in case or wrong litigation/defamation.
    Date: 2023
  8. By: Ryan Cooper; Joseph Doyle; Andres Hojman
    Abstract: Children spend years in foster care, and there are concerns that bureaucratic hurdles contribute to unnecessarily long stays. In a novel approach to policy making, the Chilean government randomized the introduction of a program aimed at reducing these delays in order to evaluate its effects on child wellbeing. Mi Abogado (My Lawyer) provides legal aid and social services to children living in institutions in Chile. Using administrative data linked across government registries, we find the program substantially reduced length of stay in foster care with no increase in subsequent placement, with resulting savings greater than the cost of the program. The program also led to a large reduction in criminal-justice involvement, and we find suggestive evidence of improvements in school attendance. Effects are stronger for boys across these outcomes.
    Keywords: Legal aid, child welfare, foster care, Chile, social services, criminal justice, school attendance
    Date: 2023–07–03

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