Advertising and the Price and Quality of Legal Services: The Case for Legal Clinics

Because the holding in Bates v. State Bar of Arizona is narrow and because some lawyers remain opposed to advertising, the dispute over lawyer advertising continues. Many who favor restricting advertising contend that it will not benefit consumers. They argue that prices must either rise to cover the cost of advertising or, if prices do fall, that quality must also drop.
This article addresses itself to both charges. The first section is theoretical, demonstrating how advertising could lower the costs of producing legal services. Advertising increases the volume of services a lawyer can expect to sell. Greater volume, in turn, allows greater specialization in production, more effective use of systems management, and the substitution of paralegals and capital for lawyer inputs. The authors argue that each of these changes will lower costs, thereby lowering prices without necessarily reducing quality. The second section is empirical, comparing the prices and particularly the quality of services produced by a heavy advertiser, the Legal Clinic of Jacoby & Meyers, and the traditional firms in the Los Angeles market with which the clinic competes. Quality is defined both subjectively and objectively, and original data are presented indicating that the quality of service that the clinic supplies is at least equivalent, and on some measures better, than the quality of service that traditional firms provide.     

Nonmoney income and the elderly: The case of the tweeners

This paper examines the degree of economic security experienced by the population aged 65 and over. Elderly people in the United States now enjoy an average degree of economic well being that is high relative to the younger population. Within that average there is variance, however. This analysis finds that elderly persons in the lower-middle income range—within 100 and 200 percent of the poverty line—are economically more vulnerable than either those of high income or those below the poverty threshold. Virtually all of the elderly benefit from social security retirement income (OASI) and Medicare. The poor receive in addition substantial means-tested cash and in-kind transfers, and the well-to-do receive enough additional subsidies and tax-free income to leave them better off after government intervention than before it. But those in between—the tweeners—are more likely to rent unsubsidized housing, are less likely to have non-Medicare health subsidies, and are more likely to rely on OASI as their primary source of income. When facing economic or health problems, the only way they can improve their well being is to spend themselves down to penury and thereby qualify for means-tested cash and in-kind transfers, in the form of Medicuid and Supplemental Security Income. Policy implications of these findings are discussed in closing.     

Facilitating Violence: A Comparison of Gang-Motivated, Gang-Affiliated, and Nongang Youth Homicides

It is well established that gangs facilitate violent offending by members,but the mechanisms by which that facilitation occurs remain unclear. Gangsmay promote violence indirectly by facilitating members' access to riskysituations such as drug markets or directly through gang functions such asturf defense. We explore alternative modes of facilitation in a comparisonof gang-affiliated homicides (which involve gang members but do not resultfrom gang activity), gang-motivated homicides (which result from gangactivity), and nongang youth homicides in St. Louis. We find importantdifferences as well as similarities in the time trends and eventcharacteristic of the two types of gang homicide; in key respects thegang-affiliated homicides more closely resemble the nongang events. Thegang-motivated events exhibit a somewhat distinctive spatial patterning,as might be expected from their connection to turf conflicts. However, allthree homicide types are highly concentrated in racially isolated,disadvantaged neighborhoods, which remain the fundamental socialfacilitators of both gang and nongang violence.     

Time efficiency as a measure of court performance: evidence from the Court of Justice of the European Union

European Journal of Law and Economics - This work proposes an alternative measure of court performance, namely, time efficiency, which is equal to the length of a verdict divided by the time needed...     

Some management objectives of the peasant farmer: An analysis of risk aversion in the choice of cropping pattern,Surat district,India

The basis of peasant farmers’ decision‐making is a critical factor in the formation of agricultural policy in developing countries. If farmers operate efficiently, implying that profits are maximised, then incomes can only be increased by introducing improved methods of production; if farmers do not act efficiently, it may be desirable to reallocate resources within traditional agriculture. Similarly, predictions of farmers’ responses to price changes and thus the impact on aggregate production and employment¹ are based on assumptions regarding farmers’ management objectives.

The primary aim of this paper is to examine empirically the cropping patterns chosen by a group of peasant farmers in Surat District, India, using a simple model of risk aversion. The data show that the observed behaviour corresponds very closely to the hypothesis that farmers allocate land to different crops by striking some balance between the competing criteria of (a) increasing income and (b) decreasing risk measured by income variability. The actual definition of risk is, in this case, the mean absolute deviation of income around its mean level. Secondly, the contrasting importance of risk and credit between irrigated and unirrigated farms is illustrated, and finally, some policy implications are discussed briefly.