Interjurisdictional redistribution and public goods with increasing returns to scale

This paper builds upon probabilistic voting theory to examine vote maximizing interjurisdictional redistribution with increasing returns to scale in the production of regional public goods. We find that with interregional differences in the per capita cost of public goods, the vote maximizing interregional redistribution will seem incoherent and unfair when judged on the basis of the availability of public goods or regional incomes.     

Law and Firms' Access to Finance

This article examines how a country’s legal origin influencesthe operation of its financial system by using firm-level surveydata across a broad cross-section of countries on the obstaclesthat firms face in raising external finance. Using panel regressions,the article assesses two channels through which legal originmay influence the financial system. We find that the adaptabilityof a country’s legal system is more important for explainingthe obstacles that firms face in accessing external financethan the political independence of the judiciary.     

Evaluating the Effects of Universal Place‐Based Scholarships on Student Outcomes: The Buffalo “Say Yes to Education” Program

A growing number of cities and states have been providing large tuition subsidies for residents through initiatives often called “place‐based” or “Promise” scholarship programs. We examine the effects of a prominent last‐dollar, place‐based scholarship program, Say Yes to Education in Buffalo, NY, on college matriculation and persistence. Employing a difference‐in‐differences strategy comparing changes across cohorts of students eligible and ineligible for large college scholarships, we find that scholarship eligibility is associated with an increase of 20 percent in the likelihood of matriculating into college within one year of graduation, and an increase in the likelihood of persistence into a second year of college of nearly 16 percent. Increases in matriculation are largely at four‐year institutions, where most of the additional funding from Say Yes is concentrated, exclusively at in‐state institutions, both public and private, and are largest at colleges with more selective admission rates. Finally, we see the largest increases in matriculation and persistence among students who attend high schools in the middle third of the poverty distribution. These results suggest that the additional aid provided by Say Yes plays an important role in increasing college matriculation and encouraging students to attend more selective schools.     

The Linguistics of Misrepresentation: Intentions and Truth Values

During contractual negotiations, one party may lead the other into error, thus causing loss or damage. If misrepresentation is shown, the aggrieved party may therefore claim for damages or rescission. In the English law, it was for many years unclear whether a finding of misrepresentation required proof of deliberate, intentional fraud, or whether it could be analysed as a simple failure of consensus, in which case it would be sufficient to show negligence. According to the traditional rule, the misleading declaration had to be factually false, and concern an existing state of affairs or a verifiable past event. However, expressions of personal opinion or of future intention can mislead, although they cannot sensibly be considered as true or false. Further, in practice, many literally true sentences are liable to give false impressions. Such statements may be ambiguous or only partly true. Like linguists and ethical philosophers, the judges are confronted with recursive problems of understanding and re-interpretation. Citations from a number of celebrated English cases are given to show that in spite of significant developments, no legal rules or principles can satisfactorily account for intuitions concerning intentional behaviour and morality.     

Psychological Dimensions of the Israeli Settlements Issue: Endowments and Identities

When you have a rational discussion of what to do with the Israeli settlements, how do you factor in the irrational, the deeply held beliefs of people with varying views? As we witnessed at the conference, when people speak about the Israeli settlements, they do so with emotion, using such phrases as “Messianic spirit,”“longing for homeland,”“compassionate revenge,” and “the destruction of dreams.” The land in question is precious to two different groups, who each imbue the land with their own narrative and fervor. In fact, at the very heart of what makes the settlements issue so complex and seemingly intractable is its psychological dimensions — the mental and emotional factors that permeate the discussion at every level.     

Ensuring an Inventor's Patent Rights: Recent Supreme Court Case Clarifies Timing of Application

Patent law encourages the development and transfer of technology by making the information regarding new inventions public knowledge, while providing the inventor with the right to exclude others from making, using or selling the invention for 20 years. Because the exclusive rights to the invention are limited in time, and to prevent the inventor from gaining additional time, the application for a patent must be filed within a statutorily prescribed time. Recently, the U.S. Supreme Court in the case of Pfaff v. Wells Electronics, Inc. clarified one aspect related to the timing of the patent application. This article specifically examines the Pfaff case and the question of when an invention subject to a contract to sell exists as it relates to the timing of patent applications.