Moving the Goalposts: Financial Market Regulation in Hong Kong and the Crash of October 1987

The article examines the operation of the Hong Kong stock and futures exchanges during the crash of October 1987 and in particular the controversial decision to close the exchanges. It argues that the closure decision exposes a serious conflict of interest and abuse of power on the part of the major decision makers and fundamental flaws in Hong Kong's self-regulatory system. Moreover, these events raise broader questions about the strengths and weaknesses of different regulatory regimes and about the value of different theoretical explanations of regulatory behavior. In particular, it is argued that the most influential theory concerning the regulation of financial markets—that of certain Chicago School economists—raises as many questions as it answers, and that an alternative view which locates cultural and organizational factors at its core provides a more satisfactory explanation of the events of October 1987.     

Reviews

Leslie Holmes, Post‐Communism: An Introduction. Cambridge: Polity Press, 1997, xiv + 384 pp., £14.95.

Stephen White, Richard Rose & Ian McAllister, How Russia Votes. Chatham, NJ: Chatham House Publishers, 1997, xx + 332 pp., £14.95.

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Juries Don't Make Legal Decisions! And Other Problems: A Critique of Hastie et al. on Punitive Damages

Hastie, Schkade, and Payne (1998) published a simulation experiment intended to study the performance of jurors and juries regarding verdicts on whether punitive damages should be allowed. They concluded that juries were not very competent and discussed the legal policy implications of this conclusion. I identify a fatal conceptual flaw that renders the study irrelevant to legal policy: The jurors were asked to decide law, a decision that is the responsibility of the trial judge, not the jury. I also identify a number of misstatements and unsupported assertions in the article.     

Can epidemiological studies assist in the evaluation of community treatment orders? - The experience of Western Australia and Nova Scotia

Epidemiological studies using administrative databases have several advantages over other methodologies in studying the effectiveness of compulsory community treatment such as community treatment orders (CTOs). We compared patients placed on CTOs in Western Australia with controls drawn from both within the jurisdiction and from another without this measure (Nova Scotia). Although in different countries, the mental health services in both jurisdictions share common characteristics. Notably, we were able to control for forensic history in our comparison within Western Australia. We analysed predictors of admission and number of bed-days using multiple, logistic or Cox regression as appropriate. Of the 274 subjects placed on a CTO, we were able to find controls for up to 96% (n=265). CTO placement was not associated with reduced admissions or mean bed-days, although there was a threshold effect with a reduced risk of inpatient stays exceeding 100 days. Outpatient contacts were significantly greater for the CTO group. However, we do not know whether the intensity of treatment, or its compulsory nature, effected outcome.