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on Law and Economics |
| By: | Bertrand Chopard (Université Paris Cité, LIRAES, F-75006 Paris, France.); Olivier Musy (Université Paris Cité, LIRAES, F-75006 Paris, France.) |
| Abstract: | The integration of AI for healthcare redefines medical liability, converting decisionmaking into a collaborative process involving a technological tool and its user. When a harm is caused, both users and manufacturers of AI may be responsible. The judicial system has yet to address claims of this nature. We build a model with bilateral care to study which combinations of liability rules are socially efficient. Both agents could face strict liability, be subject to negligence rules or face hybrid regimes: one agent faces a fault liability regime, while the other operates under strict liability. We highlight two crucial elements: (i) the sharing scheme of the payment of compensation between users and producers (ii) the nature of their cares (complements or substitutes). The latest AI Liability Directive from the European Parliament in the field of medicine advocates the implementation of a strict liability regime for producers and a fault liability regime for users. We show that this regime is socially efficient. A novel framework is not necessary. |
| Keywords: | medical liability; joint liability; artificial intelligence; bilateral care; european regulation |
| JEL: | I11 L13 K13 K41 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:afd:wpaper:2404&r=law |
| By: | Jakub Lonsky; Isabel Ruiz; Carlos Vargas-Silva |
| Abstract: | The role of ethnic immigrant networks in facilitating international trade is a well-established phenomenon in the literature. However, it is less clear whether this relationship extends to illegal trade and unauthorized immigrants. In this paper, we tackle this question by focusing on the case of the heroin trade and unauthorized Chinese immigrants in the early 1990s United States. Between mid-1980s and mid-1990s, Southeast Asia became the dominant source of heroin in the US. Heroin from this region was trafficked into the US by Chinese organized criminals, whose presence across the country can be approximated by the location of unauthorized Chinese immigrants. Instrumenting for the unauthorized Chinese immigrant enclaves in 1990 with their 1900 counterpart, we first show that Chinese presence in a community led to a sizeable increase in local opiates-related arrests, a proxy for local heroin markets. This effect is driven by arrests for sale/manufacturing of the drugs. Next, we examine the consequences of Chinese-trafficked heroin by looking at its impact on US Vietnam-era veterans – a group particularly vulnerable to heroin addiction in the early 1990s. Using a triple-difference estimation, we find mostly small but statistically significant detrimental effects on labor market outcomes of Vietnam veterans residing in unauthorized Chinese enclaves in 1990. |
| Keywords: | Trade networks, heroin markets, Vietnam veterans, labor market outcomes |
| JEL: | F16 F22 J15 K42 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:202203&r=law |
| By: | Haugan, Gregory L. (University of Chicago); Santos, Rafael (Universidad de los Andes) |
| Abstract: | In 2008, a powerful Colombian crime lord (Don Berna) was extradited to the United States. Homicides doubled in his stronghold of Medellin immediately following the extradition. We use variation in time generated by the pre- and post-extradition periods, and variation in space generated by areas of Medellin originally controlled by Don Berna to estimate the impact of the extradition on homicides. We then use the extradition as an instrument for homicides, and show that the wave of violence had downstream effects on education outcomes in the city. Homicide exposure led to a decrease in test scores, increased student dropout (driven by males and poorer students), and increased teacher turnover among teachers with the highest qualifications. Homicides disproportionately affect the test scores of high-performing and non-poor students. |
| Keywords: | Extradition; Homicides; Gang Violence; Education; Test scores |
| JEL: | D74 I25 J24 K42 O12 O15 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:021073&r=law |
| By: | Chiara Fumagalli; Massimo Motta |
| Abstract: | The European Commission (EC) has recently announced its intention to issue Guidelines on exclusionary abuses. In this paper, we explain how economics can and should be used to inform a sound and effects-based approach in the enforcement of Article 102 TFEU. In particular, the EC should be guided only by a consumer welfare standard; exclusive dealing and exclusivity rebates should be subject to a (rebuttable) presumption of harm; price-cost tests are meaningful only for predation and other practices which do not reference rivals; essentiality of the input should not be a requirement for vertical foreclosure cases of any type, but such cases should be limited only to dominant firms that satisfy certain criteria. |
| JEL: | K21 L12 L13 L41 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1431&r=law |
| By: | Bogdanova, Iryna |
| Abstract: | Abstract Literature and practice outlining the relationship between human rights and unilateral economic sanctions veer in two opposite directions. One strand of literature advocates for sanctions to redress grave human rights violations. This position has been epitomised in the legislation allowing the imposition of economic sanctions for human rights violations occurring abroad (Magnitskystyle sanctions). The opposing voice criticises unilateral economic sanctions irrespective of their objectives and forms, mainly by emphasising their negative repercussions on the enjoyment of human rights. This position is officially adopted by the Special Rapporteur on the negative impact of unilateral coercive measures on the enjoyment of human rights, and is reflected in numerous reports on the matter, which are traditionally supported by the most-sanctioned countries. This contribution aims to explore perplexing and multifaceted relations between human rights and unilateral economic sanctions, an issue that is politically tainted, and which has been insufficiently analysed from a legal standpoint. Retreating from the clashes between these prevailing old, unworkable dichotomies, this contribution argues for a more nuanced portrayal of the subject matter. Continue reading in the attached PDF. Full publication available. About the author: Dr. Iryna Bogdanova |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:wti:papers:1434&r=law |
| By: | Welker, Carl B. |
| Abstract: | The existence of bitcoins and NFTs, and perhaps also the possibility of founding a company on a blockchain network, should have gotten around after 15 years. At present, software engineers continue to work on solutions in Web3, new business activities such as coin minting, blockchain installations and the creation of Web3-related off-chain and on-chain financial products are constantly being recorded. Major law firms are making all this legally secure for banks, after most extensive legal constructions have been established, lately with Regulation (EU) 2023/1114. In view of all this, it is very surprising that there is still no precise definition of "tokens" from a business and application-oriented perspective. As it stands, the academic field is dominated by computer scientists and, after a few legal conflicts, also by lawyers. The treatment in business and management theory is falling behind. The new Web3 technologies offer considerable potential for companies in all sectors. In order to exploit this potential, the creative options of the new technology must be systematically explored and requirements such as quality and legal certainty must be met when putting them into practice. This requires precise definitions. This discussion paper examines the relevant differentiation criteria of tokens in order to then propose a more precise, selective differentiation of token classes. |
| Keywords: | Web3, Distributed Ledger Technologies, Blockchain, Tokenization, Currency Token, Asset Token, Security Token, Utility Token |
| JEL: | G30 K12 K22 L14 L15 L26 M13 O17 O32 O33 O35 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhbm:284391&r=law |
| By: | Bohne, Albrecht; Koumpias, Antonios M.; Tassi, Annalisa |
| Abstract: | This paper explores the connection between the proliferation of cashless, or e-money, payments and value-added tax (VAT) compliance. We present both visual and descriptive evidence that illustrates a negative correlation between e-money use and VAT evasion, proxied by the VAT compliance gap for countries in the European Union, from 2001 until 2021. We find that increased e-money usage by 100 percentage points (pp) is associated with a reduction in the VAT gap of 0.3pp or 1.92% of the aggregate VAT compliance gap over time. Moreover, we contribute a novel estimate of the causal impact of cashless payments on VAT evasion during the COVID-19 public health emergency. We identify a link between mobility restrictions in the European Union and reductions in VAT compliance gaps, facilitated by changes in payment norms. An estimated rise of 1pp or 5.51% in e-money use results in an 11.9% reduction in the VAT compliance gap. Our findings suggest that changes in transaction payment behavior such as the adoption of cashless payments may yield significantly more tax revenues by curbing non-compliance. Policies aimed at promoting e-money usage and limiting cash circulation are relevant steps forward in this direction. |
| Keywords: | Tax evasion, VAT gap, cashless payments, e-money, mobility restrictions, COVID-19 pandemic |
| JEL: | H26 K42 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283581&r=law |
| By: | Grenadier, Steven (Stanford U); Grenadier, Brian (Stanford U) |
| Abstract: | We solve a multi-stage real options model of litigation that embeds extant frameworks from the literature. The characterization of filing a lawsuit as a compound option permits a novel analysis of real-world phenomena. Heightened pleading standards, with the front-loading of litigation costs and potentially earlier trial payoff predictability, are analyzed in terms of their impact on the marginal propensity to sue. Court delays, despite concomitant cost increases, may lead to a destructive positive feedback loop in which delays inspire more filings. An equilibrium settlement solution is derived, implying efficiency gains, but more frequent low expected value lawsuits. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4121&r=law |