The Effect of Electoral Institutions on Tort Awards

We argue that partisan elected judges have an incentive to redistributewealth from out-of-state defendants (nonvoters) to in-stateplaintiffs (voters). We first test the hypothesis by using cross-statedata. We find a significant partisan effect after controllingfor differences in injuries, state incomes, poverty levels,selection effects, and other factors. One difference that appearsdifficult to control for is that each state has its own tortlaw. In cases involving citizens of different states, federaljudges decide disputes by using state law. Using these diversity-of-citizenshipcases, we conclude that differences in awards are caused bydifferences in electoral systems, not by differences in statelaw.     

Simple rules for the developing world

Much of the discussion in favor of simplicity of legal rules and against complex regulation is rooted in economically developed countries with strong state capacity. With economic development and state capacity comes the presumption that complex rules will be enforced. Therefore, analysis focuses on the administrative and error costs, and the unintended consequences of complex rules that are enforced. This paper argues that the Epsteinian insight is even more relevant to the developing world where countries often lack enough state capacity to even take on simple governance tasks. Developing countries often have less than 20 percent of the state capacity of developed countries. However, this does not mean they limit the regulatory structure to a fifth of the tasks. Under-enforcement or non-enforcement of complex rules imposes different costs and unintended consequences on society. Using examples from India, this paper highlights problems of enforcement swamping, deadweight loss, and corruption arising from the under-enforcement of complex rules. To avoid these problems, the paper concludes that a fortiori less developed countries should favor simple rules.

     

The private provision of public goods via dominant assurance contracts

Many types of public goods can be produced privately by profit seeking entrepreneurs using a modified form of assurance contract, called a dominant assurance contract. I model the dominant assurance contract as a game and show that the pure strategy equilibrium has agents contributing to the public good as a dominant strategy. The game is also modelled under incomplete information as a Bayesian-Nash game.     

President Perot or Fundamentals of Voting Theory Illustrated with the 1992 Election

Different voting systems can lead to different election outcomeseven when voter preferences are held constant. Using the 1992 election as anexample, it is shown how the outcome of every positional votesystem can be found. Similarly, every possible cumulative andapproval vote outcome is shown. Multiple vote systems, likeapproval and cumulative voting, have disturbing properties. Usingthe 1992 election as illustration, it is shown how a candidate whowins under every positional vote system, who wins every pairwisevote (i.e. is the Condorcet winner), and who has the most firstplace and least last place votes may nevertheless lose underapproval or cumulative voting. Similarly, it is shown how acandidate who loses under every positional system, who loses everypairwise vote (i.e. is the Condorcet loser), and who has the leastfirst place and most last place votes may nevertheless win underapproval or cumulative voting.