Economic Analysis and Law The Economics of the Courtroom

List of figures

List of tables

1.1 Microeconomic foundation

1.2 Normative versus positive law and economics

1.3 Economic models and markets

1.4 Market transactions and consumer class action litigation

1.5 Economic and judicial interpretations of consumer responsiveness to price changes

1.5 (A) US labor market and the Civil Rights Act of 1964

1.5 (B) US labor law and economics of discrimination

1.6 Production cost and consumer welfare

2.1 Aggregate economic performance (the business cycle)

2.2 Forensic implications of (international) unemployment

2.3 Nominal and real interest rates

2.4 The inflation factor

2.5 Interest rates and inflation in courts of law

2.6 Open macroeconomics and exchange rate law

3.1 The interface of corporate finance and real economic performance

3.2 Laws of the Security and Exchange Commission

3.2 (A) Financial statements

3.2 (B) The income statement

3.2 (C) The balance sheet

3.2 (D) The statement of cash flow

3.3 Financial statements and securities regulation

3.4 Applications of SEC law

3.4 (A) Securities trade and extraterritorial jurisdiction

3.4 (B) The principal-agent problem

3.4 (C) A case of abusive managerial discretion? Dodge v. Ford Motor Company (204 Mich. 459 170 N.W. 668 (1919))

3.4 (C) (I) Managerial economics in Dodge v. Ford

3.4 (C) (II) Normative economics in Dodge v. Ford

3.5 The principal-agent struggle for control of public corporations

4.1 Innovation and human rights

4.2 Ethical lapses and costs of IP expropriation

4.3 The economic consequences of innovation

4.4 Intellectual property law

5.1 Federal rules of evidence and scientific requirements (the Daubert Standard)

5.2 The structure of data

5.3 Sampling strategies

5.4 Forecasting economic value

5.5 Ordinary least squares (OLS)

5.5 (A) Time value of money

5.5 (B) Future value of money

5.5 (C) Present value of money

5.5 (D) Litigating the discount rate

5.5 (E) Annuities and amortization

5.5 (F) The net present value (NPV) of money

5.6 Putting it all together: the Mooresville Honda Case and work life expectancy

5.7 Chi square analysis

5.8 The intrinsic value of public companies

6.1 Types of taxpayers

6.2 The economics and laws of taxation

6.3 The US tax gap

6.4 Theories of tax avoidance and evasion

6.5 The tax court system of the US

6.6 Tax flight and the Foreign Account Tax Compliance Act (FATCA)

7.1 The evolution of US antitrust law

7.1 (A) The Sherman Act (1890)

7.1 (B) The Clayton Act (1914)

7.1 (C) The Federal Trade Commission (FTC) Act (1914)

7.1 (D) The Robinson-Patman Act (1936)

7.1 (E) The Wheller-Lea Act (1938)

7.1 (F) The Cellar-Kefauver Act (1950)

7.1 (G) The Williams Act (1968)

7.1 (H) The Hart-Scott-Rodino (HSR) Act (1976)

7.2 The development of mergers and acquisitions (merger waves)

7.3 Measuring market concentration: the Herfindahl-Hirschman and Lerner indices

7.4 Innovation, tying, and monopolization: antitrust law and the Microsoft Case

7.5 Estimating antitrust damages

8.1 The sources of international law

8.2 Trade theories as foundations of international trade law

8.3 Trade restrictions with partial equilibrium analysis (subsidies and tariffs)

8.4 International trade law

8.4 (A) Infant industry protection (Art. XIII)

8.4 (B) Dumping (Art. VI, Anti-Dumping Agreement, and Agreement to Implement)

8.4 (C) Balance of payments stability and quantitative restrictions (Art. XII)

8.4 (D) Non-discrimination, quotas, and exemptions (Arts. I, and XIV)

8.4 (E) Regional Trade Agreements (RTAs) (Arts. XXIV and I) 397

8.4 (F) Agreement on Subsidies and Countervailing Measures (SCM) (Art. XVI and SCM)

8.5 The WTO’s Dispute Settlement Understanding (DSU)

8.6 Applications of economic law to trade disputes

8.6 (A) Export subsidy

8.6 (B) Dumping

8.6 (C) Discriminatory market access

8.7 Monetary economics and international law: the confiscatory effects of currency devaluation or manipulation of value

8.8 Customary and conventional monetary law

8.8 (A) The limits of monetary “sovereignty”: contractual monetary arrangements

8.8 (A) (I) Obligations regarding exchange arrangements (Art. IV)

8.8 (A) (II) Surveillance over exchange arrangements (Art. IV § 3)

8.8 (A) (III) Waiver conditions (Art. V § 4)

8.8 (A) (IV) Ineligibility to use the Fund’s general resources (Art. V § 5)

8.8 (A) (V) Interpretation of the Articles of Agreement (Art. XXIX)

8.9 Applications of monetary law: no contrived confiscation

8.10 Long-term foreign investment and foreign investment laws

8.10 (A) The international law of Foreign Direct Investment (FDI)

8.10 (B) National treatment (OECD Guidelines: Declaration II. 4)

8.10 (C) International investment incentives and disincentives (OECD Guidelines: Declaration IV. 1– 3)

8.10 (D) Concepts and principles

8.10 (E) General policies (OECD Guidelines II)

8.10 (F) Disclosure (OECD Guidelines III)

8.10 (G) Human rights (OECD Guidelines IV)

8.10 (H) Environment (OECD Guidelines V)

8.10 (I) Combating bribery, bribe solicitation and extortion (OECD Guidelines VII)

8.10 (J) Consumer interests (OECD Guidelines VIII)

8.10 (K) The taking of foreign property (international law of expropriation and confiscation)

8.11 The Aminoil Case (Government of Kuwait v. American Independent Oil Company, 1982)

8.11 (A) The laws governing the arbitration

8.11 (B) Sovereignty over national resources and nationalization

8.11 (C) Fair and equitable treatment (FET)

8.11 (D) Good business (oilfield) practices

8.11 (E) The gold clause and asset (currency) price stability or convertibility

8.11 (F) Business valuation and compensation

Biography

Christopher E.S. Warburton is an international economist who currently teaches economics and finance at Houghton College in New York, USA.