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The collection of all scholarly commentary on law, economics, and more

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Say on Pay

A late Monday press release from the Securities and Exchange Commission announces a rule proposal to implement the say on pay requirements of the Dodd-Frank Act.  I testified before both houses of Congress against the legislative authorizing language in Dodd-Frank that the SEC uses to promulgate the rule.  My testimony before the House Financial Services ... Say on Pay

Antitrust and the Dynamics of Competition in High-Tech Industries

On Friday, I will be participating at an event at Technology Policy Institute, where I will be discussing the titular question along with Bob Crandall, Charles Jackson, Christopher Yoo, and Bruce Owen.  Discussants are Joe Farrell, Tim Brennan, Carl Shapiro and Michael Salinger.  As suggested below, my topic will be the recent antitrust enforcement actions ... Antitrust and the Dynamics of Competition in High-Tech Industries

The roots of foreclosure-gate: incentives and lawyers

Careless or even fraudulent documentation in foreclosure actions has stalled foreclosures, stymied recovery of the housing market, threatened the earnings and even financial stability of banks, and may lead to massive securities fraud actions.  How did this happen?  Per CR: [A] combination of getting swamped with foreclosures, lack of experienced staff, the poor economic environment ... The roots of foreclosure-gate: incentives and lawyers

Must the President Defend Don’t Ask, Don’t Tell?

Usual caveats for a Lambert weekend post: Post is off-topic for this blog and represents my own opinion only. Well, he’s done it.  President Obama has ordered his Department of Justice to appeal the district court order abrogating Don’t Ask, Don’t Tell.  DOJ initiated the appeal on Thursday. Mr. Obama says that he has no choice but to do this.  While he is ... Must the President Defend Don’t Ask, Don’t Tell?

Another unintended consequence of SOX: preliminary earnings

We know that Sarbanes-Oxley imposed significant costs on firms in the interests of more accurate disclosures.  Maybe this is a cost worth bearing.  But what if one of these costs is actually less accurate disclosures? Scott N. Bronson, Chris Hogan and Marilyn Johnson of Michigan State have written The Unintended Consequences of PCAOB Auditing Standards ... Another unintended consequence of SOX: preliminary earnings

Wilkes v. Springside and the Rise of the Uncorporation

As I noted last week I participated with several corporate law luminaries in a conference at Western New England College in Springfield, Massachusetts on the famous case of Wilkes v. Springside Nursing Home, 370 Mass. 842, 353 N.E.2d 657 (1976). Springfield is near Pittsfield, where Springside was located and this case originated. As most law students ... Wilkes v. Springside and the Rise of the Uncorporation

Proxy Access Defenses…The Movie

Okay, it would be a pretty lame movie.  Not nearly enough sex, betrayal, or death.  Nevertheless it’s probably easier than reading the whole article.  (If you are inclined to read the article first, which most people say is the best way to enjoy the movie, then check out Defending Against Shareholder Proxy Access: Delaware’s Future ... Proxy Access Defenses…The Movie

Justin Wolfers on Recessions and the Economics of Marriage

As per usual, Justin Wolfers is there to clean up misconceptions about the data and explain what is really going on.  As it turns out, claims that recessions have killed marriage have been grossly exaggerated.  Here’s a picture Justin shows to demonstrate the point (the gray bars are recessions). Also interesting on the economics of ... Justin Wolfers on Recessions and the Economics of Marriage

“If no one else sues them, I will”

So says Nassim Nicholas Talem of Black Swan fame, referring to the Nobel committee for “legitimizing” economists, inducing reliance on their ideas, and thereby causing the financial crisis. According to the article, Taleb identified Harry Markowitz, Merton Miller and William Sharpe for their work on portfolio theory.   Talem goes on to announce that he wants ... “If no one else sues them, I will”

Markets and art

We often seem to assume that market competition is inconsistent with great art.  In fact this is not true.  People like good art, especially rich people, and therefore will pay for it.  Consider, for example, the state of movies and television today.  Edward Jay Epstein (HT MR) notes that while subscription television has had turn to ... Markets and art

Do Republicans Hate Behavioral Economics?

Ezra Klein has an interesting blog post covering Peter Diamond’s nomination to Federal Reserve Board.  The standard refrain in this debate has been something like: “See! The Republicans blocked Diamond and now he won the Nobel — don’t they look silly now.”  I don’t find the particular issue of comparing Diamond’s qualifications as an economist ... Do Republicans Hate Behavioral Economics?

Does the Insider Trading Ban Apply to Congressional Staffers?

In a front-page article entitled Congress Staffers Gain from Trading in Stocks, the Wall Street Journal reports that “72 aides on both sides of the aisle traded shares of companies that their bosses help oversee.” That finding was based on an “analysis of more than 3,000 disclosure forms covering trading activity by Capitol Hill staffers ... Does the Insider Trading Ban Apply to Congressional Staffers?