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

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What’s "Courageous" When It Comes to Taxing Investment Income?

Today’s New York Times accuses President Bush of getting things “exactly backwards” by exhorting Congress to demonstrate political courage by resisting the urge to raise taxes. The politically courageous move, the Times says, would be to raise taxes (i.e., to refuse to extend the 2003 cuts beyond their expiration date). In particular, the Times calls ... What’s "Courageous" When It Comes to Taxing Investment Income?

A Big Bite of Whopper

The W$J reports today (click here) that Burger King will be taking on $350 million in additional debt to fund the majority of a $400 million pre-IPO special dividend to its private equity fund owners. IPO proceeds will then be used to pay down the debt, apparently leaving little, if any proceeds, leftover. The article ... A Big Bite of Whopper

Paternalism and the iPod

I know it’s like shooting fish in a barrel to go after the tort bar and the cult of litigation masquerading as paternalism (or is it paternalism masquerading as litigation?), but this is too ridiculous to forebear. Over at Tech Law Prof Blog, Mark Giangrande reports that Apple has been hit with a lawsuit claiming ... Paternalism and the iPod

Icahn Sued by Hedge Fund

Carl Icahn has been all over the news lately. I’m beginning to think it’s to garner publicty for the launch of a new reality show called something like “The Activist.� I would watch it. Anyway, today the W$J reports (click here) that Icahn is being sued by a hedge fund in connection with proposed transactions ... Icahn Sued by Hedge Fund

Record Hedge Fund Launch

The FT reports today that Jack Meyer, former manager of Harvard’s $25 billion plus endowment, has raised more than $5 billion for his new hedge fund, Convexity Capital. This represents the most successful launch in hedge fund history. Does this mean the talk of the decline of hedge funds was overblown? Perhaps not. Meyer is ... Record Hedge Fund Launch

Risk Allocation Provisions and Auditor Independence

I blogged previously about a W$J article on auditors including so-called liability caps in their client engagement letters (see here). My view was that it really wasn’t newsworthy because “liability limitation provisions are standard in contracts among sophisticated parties, so its not surprising that auditors include them in engagement letters.� Additionally, the provisions cited in ... Risk Allocation Provisions and Auditor Independence

The U.S., the WTO and the absence of international law

Joel Trachtman at International Economic Law & Policy blog and Julian Ku at Opinio Juris are commenting on the role of international law in shaping US behavior, in this case with respect to compliance with WTO rulings. As Joel points out, “[t]raditional realist political science considers traditional international law ‘epiphenomenal,’ meaning that the real action ... The U.S., the WTO and the absence of international law

Burger King IPO Announcement: Technical Violation of Securities Act?

Burger King announced today that it plans to file an IPO registration statement with the SEC in March (click here for a Reuters article). According to BK’s CEO: “Our goal has always been to take Burger King public . . . . We believe the transparency and stability in ownership offered by being a public ... Burger King IPO Announcement: Technical Violation of Securities Act?

Vanderbilt’s New PhD Program in Law & Economics

Brian Leiter and David Bernstein report an exciting development: Vanderbilt Law School is starting a new PhD program in “law and economics.� See the official announcement here. The program will be headed by Kip Viscusi and Joni Hersch, two well-regarded law and economics scholars who are joining the Vanderbilt faculty from Harvard Law School. One ... Vanderbilt’s New PhD Program in Law & Economics

The costs of options expensing rules

Larry points us to a new corporate finance blog, Richard Booth’s The Quant. It looks like a great blog. The most recent post is on executive compensation–particularly on the serious problems of expensing options (and the FASB rule requiring it). Here’s a lengthy and informative excerpt (with a couple words from me following): In the ... The costs of options expensing rules

A Better Way to Save Magnificent Trees

Yesterday’s New York Times reported on “a growing movement, from suburban Washington to Los Angeles, to protect mature urban trees — and in some communities, make it a crime to chop them down.” Washington Redskins owner Daniel Snyder, for example, was recently fined $37,000 for removing 130 view-obstructing trees on his riverfront estate, and the ... A Better Way to Save Magnificent Trees

Disney/Pixar Deal: $6 Billion for Lasseter

The Slate has an interesting take on the Disney/Pixar deal.  In an article entitled “The $6 Billion Man,” Edward Jay Epstein asserts that Disney is essentially paying $6 billion to obtain the services of John Lasseter, Pixar’s creative guru.  Lasseter’s salary last year was about $2.8 million, and the value of his Pixar shares and ... Disney/Pixar Deal: $6 Billion for Lasseter