nep-law New Economics Papers
on Law and Economics
Issue of 2024‒02‒19
four papers chosen by
Yves Oytana, Université de Franche-Comté

  1. Access to guns in the heat of the moment: more restrictive gun laws mitigate the effect of temperature on violence By Colmer, Jonathan Mark; Doleac, Jennifer L.
  2. More than Joints: Multi-Substance Use, Choice Limitations, and Policy Implications By Michelle Sovinsky; Liana Jacobi; Alessandra Allocca; Tao Sun
  3. Islamic Law, Western European Law and the Roots of Middle East's Long Divergence: a Comparative Empirical Investigation (800-1600) By Hans-Bernd Schaefer; Rok Spruk
  4. Information Sharing with the Private Sector under Anti-money Laundering and Countering the Financing of Terrorism Regulations By ISHII Yurika

  1. By: Colmer, Jonathan Mark; Doleac, Jennifer L.
    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
    JEL: K42 Q51 I18
    Date: 2023–07–13
  2. By: Michelle Sovinsky; Liana Jacobi; Alessandra Allocca; Tao Sun
    Abstract: As illicit substances move into the legal product space, substitution patterns with legal products become more salient. In particular, marijuana legalization may have implications for the use of other legal “sin” goods. We estimate a structural model of multi-product use of illegal and legal substances considering joint use, limited access to illicit products, and persistence in use. We focus on a young person’s choice to consume marijuana, alcohol or cigarettes (and possible combinations), and we find that sin goods are complements. Furthermore, our findings emphasize the necessity of accounting for joint consumption and access to obtain correct price sensitivity estimates. Post-legalization, youth marijuana use would increase from 25% to 37%. However, counterfactual results show that a combination of (reasonable) tax increases on all goods along with enforcement against illegal use can potentially revert use to pre-legalization levels. The earlier the tax increases are implemented the more effective they are at curbing future use. Our results inform the policy debate regarding the impact of marijuana legalization on the long-term use of sin goods.
    Keywords: complementarity, marijuana legalization, limited choice sets, data restrictions, discrete choice models
    JEL: C11 D12 L15 K42 H2 L66 C35
    Date: 2024–02
  3. By: Hans-Bernd Schaefer; Rok Spruk
    Abstract: We examine the impact of Islamic legal institutions to the comparative economic decline of the Middle East behind Latin Europe, which can be observed since the late Middle Ages. To this end, we explore whether the sacralization of Islamic law and its focus on the Sharia as supreme, sacred and unchangeable legal text, which reached its culmination in the 13th century had an impact on economic development. We use the population size of 145 cities in Islamic countries and 648 European cities for the period 800-1800 as proxies for the level of economic development, and construct novel estimates of the number of law schools (i.e. madaris) and estimate their contribution to the pre-industrial economic development. Our triple-differences estimates show that a higher density of madrasas before the sacralization of Islamic law predicts a more vibrant urban economy characterized by higher urban growth. After the consolidation of the sharia sacralization of law in the 13th century, greater density of law schools is associated with stagnating population size. We show that the economic decline of the Middle East can be partly explained by the absence of legal innovations or substitutes of them, which paved the way for the economic rise of Latin Europe, where ground-breaking legal reforms introduced a series of legal innovations conducive for economic growth. We find that the number of learned lawyers trained in universities with law schools is highly and positively correlated with the western European city population. We also show with counterfactual estimates that almost all Islamic cities under consideration would have had much bigger larger by the year 1700 if legal innovations comparable to those in Western Europe were introduced. By making use of a series of synthetic control and difference-in-differences estimators our findings are robust against a large number of model specification checks.
    Date: 2024–01
  4. By: ISHII Yurika
    Abstract: Financial institutions and other entities find it beneficial to exchange customer identities and criminal risk data to enhance the effectiveness of money laundering and anti-terrorism regulations. Therefore, the Financial Action Task Force (FATF) recommends sharing relevant information among private companies. Additionally, some countries and operators are exploring the consolidation of information and utilization of artificial intelligence and other technologies to identify suspicious transactions. However, implementing cross-border regulations requires robust international collaboration. Unilaterally imposing mandatory information sharing on operators could conflict with national privacy, human rights norms, and data protection laws. This study delves into how various countries are addressing these challenges in the current context and analyzes the implications for international legal frameworks.
    Date: 2024–01

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