Having the cake and eating it too: efficient penalty clauses in Common and Civil contract law

In this paper we examine one of the areas where there is a marked difference between Civil and Common contract law, that of the enforcement of liquidated damages and more particularly of penalty clauses. Common law judges are quite reluctant to enforce liquidated damages, especially if they believe that they include penalty clauses which are not enforceable. On the contrary, in almost all European contract laws liquidated damages are readily enforced, as are penalty clauses when they are not manifestly excessive. Although most law and economics scholars have criticized Common law courts for the non-enforcement of penalty clauses, there is a sizable minority of scholars who have defended the Common law “non-enforcement” policy on the ground that penalty clauses are inefficient because they hinder efficient breach. However, and despite the merits of the arguments advanced by advocates of the non-enforcement of penalty clauses, we believe that Common law’s rejection of penalty clauses is inefficient. We further show that the Civil law solution to the problem is not only comparatively more efficient, but that it can also appease the worries of those scholars who are afraid that efficient breaches will be deterred. The solution that Civil law systems give to the problem manages to enforce the parties’ wishes and to avoid deterring efficient breaches. However, we point out that in order for the Civil law systems to take advantage of this superiority, the interpretation of their Civil Codes should be guided by economic analysis and the respect to the wishes of the contracting parties.     

Understanding Recreation and Sport as a Rehabilitative Tool Within Juvenile Justice Programs

This article discusses relevant literature on the potential benefits of sport, recreation, and leisure, and how these benefits relate to rehabilitation of juveniles. Many professionals involved in juvenile rehabilitation believe sport and recreation are beneficial adjuncts to treatment programming; however, it can be difficult to structure sport and recreation in ways that directly correspond to treatment goals. The purpose of this article is to provide insights for professionals working with juveniles on how sport and recreation programming can be an effective means of helping to achieve rehabilitation goals. Attention is given to approaches, particularly the Teaching Games for Understanding model (Bunker & Thorpe, 1982), which can be used to effectively link recreation and sport to the rehabilitation process.     

颅脑损伤患者智能和记忆损害的相关因素研究

目的探讨交通事故所致颅脑损伤伤者的智能和记忆损害及相关因素。方法 统计分析成都市1999年1月1日至2001年12月31日间因交通事故造成颅脑损伤的652例伤者的心理测验、脑电图及脑影像学资料。结果研究组平均智商为77.85±15.97,27.9％的伤者智商低于70;51.9％的记忆商低于51。智力损害与文化程度、左颞叶损伤、≥3个脑叶损伤以及脑电图异常明显相关;记忆损害与文化程度、损伤和鉴定检查的间隔时间、脑于损伤、左颞叶损伤、脑电图异常明显相关。结论交通事故造成颅脑损伤的伤者多有不同程度的智力和记忆损害,且与左颞叶损伤、脑电图异常、文化程度、脑干损伤等因素有关。     

Evolving Market Efficiency with an Application to Some Bulgarian Shares

With new technically advanced methods and computers at our disposal, the efficient market hypothesis is once again being debated. At the same time, we are witnessing an unprecedented growth in both existing and new financial markets. These new markets are often in economies which have just recently embraced free market economics; we term these stock markets infant markets. Such stock markets are obviously not efficient in allocating the supply of savings to productive capital. We do not test whether or not these infant markets are informationally efficient, but instead examine whether and how they are becoming more efficient. We propose modelling the excess returns of individual securities using a multi-factor model with time-varying coefficients and generalised auto-regressive conditional heteroskedastic (GARCH) errors. If the markets are becoming more informationally efficient or the agents are learning, we would expect this to manifest itself as the time-varying coefficients becoming more stable as time increases. We test our model using data on four Bulgarian shares. First, we estimate an AR(2) model and a GARCH-M(1,1) model for the shares. Then, we estimated our AR(2) model with time varying coefficients and GARCH type errors. We find varying levels of efficiency and varying speeds of movement towards efficiency within our sample of four shares.     

Did the Tax Reform Act of 1986 Improve Compliance? Three Studies of Pre- and Post-TRA Compliance Attitudes*

The Tax Reform Act of 1986 rewrote the federal income tax code, bringing it closer to policy professionals' vision of what constitutes an equitable and efficient income tax. Research on tax compliance suggests the law might have affected taxpayer compliance in three ways: by reducing opportunities to overstate deductions, by changing perceptions of fairness, and by altering tax liabilities. Changes in taxpayer perceptions, attitudes, and noncompliance intentions were examined in three bodies of survey data, each containing pre-and post-reform data from independent samples of the same population. The results show an improved normative climate for taxpayer compliance and point to both the feasibility and the importance of examining the effects of substantive tax policies on taxpayer perceptions, attitudes, and behavioral intentions.