Economic Challenges for the Law of Contract

This Essay introduces general equilibrium theory (GET) and mechanism design theory (MD) in a general sense (rather than in piece meal applications) to the study of contract law. As a positive matter, this introduction reveals three understudied areas: (i) when the equilibrium contract is individually rational but collectively irrational; (ii) the role of courts in market completion projects; and (iii) the implementation of renegotiation- proof mechanisms. As a normative matter, incorporating GET and MD insights into the study of contract law supports broad freedom of contract and formalist interpretative practices. Lastly, this Essay points to several areas for future research, highlighting the central role of law and economics analysis in identifying feasible mechanism design programs for contract law

Mechanism Choice

This chapter reviews the literature on the selection of regulatory policy instruments, from both normative and positive perspectives. It first reviews the mechanism design literature to identify normative objectives in selecting among the menu or toolbox of policy instruments. The chapter then discusses the public choice and positive political theory literatures and the variety of models developed to attempt to predict the actual selection of alternative policy instruments. It begins with simpler early models focusing on interest group politics and proceeds to more complicated models that incorporate both supply and demand for policy, the role of policy entrepreneurs, behavioral and cognitive choice, and public perceptions and mass politics. It compares these theories to empirical experience. The chapter examines literature in law, economics, political science, and related fields, and it draws examples from US, European, and international regulation. It concludes with suggestions for future research. Document is the author\u27s manuscrip

Transnational Philanthropy, Policy Transfer Networks and the Open Society Institute

This paper avoids assumptions that civil society is an entirely separate and distinguishable domain from states and emergent forms of transnational authority. Focusing on the 'soft' ideational and normative policy transfer undermines notions of clear cut boundaries between an independent philanthropic body in civil society and highlights the intermeshing and mutual engagement that comes with networks, coalitions, joint funding, partnerships and common policy dialogues

Transnational philanthropy, policy transfer networks and the Open Society Institute

The Open Society Institute ( OSI) is a private operating and grant-making foundation that serves as the hub of the Soros foundations network, a group of autonomous national foundations around the world. OSI and the network implement a range of initiatives that aim to promote open societies by shaping national and international policies with knowledge and expertise. The OSI provides an excellent case study of the strategies of transnational activism of private philanthropy. It is an institutional mechanism for the international diffusion of expertise and ‘best practices’ to post communist countries and other democratizing nations. This paper avoids assumptions that civil society is an entirely separate and distinguishable domain from states and emergent forms of transnational authority. Focusing on the ‘soft’ ideational and normative policy transfer undermines notions of clear cut boundaries between an independent philanthropic body in civil society and highlights the intermeshing and mutual engagement that comes with networks, coalitions, joint funding, partnerships and common policy dialogues

Fiscal risks and the quality of fiscal adjustment in Hungary

The government of Hungary has contained the main fiscal risks of the transition to a market economy. It has paid off and resolved most problems in the banking and enterprise sectors. Since 1995 it has implemented fiscal adjustment with the objective of long-term fiscal stability rather than an immediate deficit target. The main result has been pension reform, which has raised temporary deficits but reduced the long-term public liability. Only the health sector awaits the reform needed for long-term fiscal stability. Levels of government spending, budget deficits, and public service remain high, but the government has made great progress toward rationalizing public spending and improving the management of budget and off-budget fiscal risks. In the transition, the government has taken on new fiscal risks--mainly state guarantees and growing programs of credit and guarantee agencies (operating on behalf of the government) organized after privatization to support, first, industries and, later, exporters. The government has dealt with these new programs of contingent government support prudently and transparently, with reasonable ceilings on (and reporting of) risks. Hungary is likely to face pressure for additional spending. Priorities in fiscal policy should include reforming health financing, establishing checks on hidden subsidies in guarantee programs, and determining the government's optimal exposure to risk. In terms of institutions, the government should aim to create a more flexible, responsive budget process and greater capacity to analyze medium-term fiscal risks, to build a more results-oriented budget management system, and to improve mechanisms for sharing risk between the public and private sectors under government programs.Insurance&Risk Mitigation,Banks&Banking Reform,International Terrorism&Counterterrorism,Payment Systems&Infrastructure,Financial Crisis Management&Restructuring,Banks&Banking Reform,National Governance,Insurance&Risk Mitigation,Municipal Financial Management,Financial Crisis Management&Restructuring

Contract Formation through Preemptive Normative Conflict Resolution

Publisher PD

Private philanthropy or policy transfer? The transnational norms of the Open Society Institute

The Open Society Institute (OSI) is a private operating and grant-making foundation that serves as the hub of the Soros Foundations Network, a group of autonomous national foundations around the world. OSI is a mechanism for the international diffusion of expertise and ‘best practices’ to post-communist countries and other democratising nations. Focusing on the ‘soft’ ideational and normative policy transfer, the article highlights the engagement in governance that comes with OSI transnational policy partnerships

Patterns of Power. The EU‘s External Steering Techniques at Work - The Case of Democratization Policies in Morocco

This paper conceptualizes a framework of political steering that includes modern conceptions of power as formulated by Foucault, Habermas, Bourdieu and others and applies it to the empirical analysis of the EU neighborhood policies. Analyzing the promotion of human rights and democracy as part of a comprehensive security strategy in Morocco since 2003, the authors scrutinize the use and the resonance of hierarchic, indirect and soft steering modes in EU external governance in the Southern Mediterranean. The findings suggest that Europe employs a complex strategy that targets governing officials, civil society actors and society at large, each with a respective mix of steering modes. Whereas classic incentives failed to initiate reforms at the government level, they proved effective in empowering Moroccan civil society actors. Soft modes are shown to play a decisive role in shaping the self-image of the administration officials vis-à-vis the EU and the parameters of public discourse on human rights and democracy, thus allowing for non-governmental actors to encroach on the government and demand democratic reforms. The integrated perspective on steering mechanisms in EU neighborhood policies thereby reveals the need to further explore micro-techniques of power in external governance analysis.power analysis; Mediterranean; Europeanization; Europeanization