Rules for Growth: Promoting Innovation and Growth Through Legal Reform

The United States economy is struggling to recover from its worst economic downturn since the Great Depression. After several huge doses of conventional macroeconomic stimulus - deficit-spending and monetary stimulus - policymakers are understandably eager to find innovative no-cost ways of sustaining growth both in the short and long runs. In response to this challenge, the Kauffman Foundation convened a number of America’s leading legal scholars and social scientists during the summer of 2010 to present and discuss their ideas for changing legal rules and policies to promote innovation and accelerate U.S. economic growth. This meeting led to the publication of Rules for Growth: Promoting Innovation and Growth Through Legal Reform, a comprehensive and groundbreaking volume of essays prescribing a new set of growth-promoting policies for policymakers, legal scholars, economists, and business men and women. Some of the top Rules include: • Reforming U.S. immigration laws so that more high-skilled immigrants can launch businesses in the United States. • Improving university technology licensing practices so university-generated innovation is more quickly and efficiently commercialized. • Moving away from taxes on income that penalize risk-taking, innovation, and employment while shifting toward a more consumption-based tax system that encourages saving that funds investment. In addition, the research tax credit should be redesigned and made permanent. • Overhauling local zoning rules to facilitate the formation of innovative companies. • Urging judges to take a more expansive view of flexible business contracts that are increasingly used by innovative firms. • Urging antitrust enforcers and courts to define markets more in global terms to reflect contemporary realities, resist antitrust enforcement from countries with less sound antitrust regimes, and prohibit industry trade protection and subsidies. • Reforming the intellectual property system to allow for a post-grant opposition process and address the large patent application backlog by allowing applicants to pay for more rapid patent reviews. • Authorizing corporate entities to form digitally and use software as a means for setting out agreements and bylaws governing corporate activities. The collective essays in the book propose a new way of thinking about the legal system that should be of interest to policymakers and academic scholars alike. Moreover, the ideas presented here, if embodied in law, would augment a sustained increase in U.S. economic growth, improving living standards for U.S. residents and for many in the rest of the world

Ernst Freund as Precursor of the Rational Study of Corporate Law

Gindis, David, Ernst Freund as Precursor of the Rational Study of Corporate Law (October 27, 2017). Journal of Institutional Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2905547, doi: https://dx.doi.org/10.2139/ssrn.2905547The rise of large business corporations in the late 19th century compelled many American observers to admit that the nature of the corporation had yet to be understood. Published in this context, Ernst Freund's little-known The Legal Nature of Corporations (1897) was an original attempt to come to terms with a new legal and economic reality. But it can also be described, to paraphrase Oliver Wendell Holmes, as the earliest example of the rational study of corporate law. The paper shows that Freund had the intuitions of an institutional economist, and engaged in what today would be called comparative institutional analysis. Remarkably, his argument that the corporate form secures property against insider defection and against outsiders anticipated recent work on entity shielding and capital lock-in, and can be read as an early contribution to what today would be called the theory of the firm.Peer reviewe

Review article of the current state of glaciers in the tropical Andes: a multi-century perspective on glacier evolution and climate change

The aim of this paper is to provide the community with a comprehensive overview of the studies of glaciers in the tropical Andes conducted in recent decades leading to the current status of the glaciers in the context of climate change. In terms of changes in surface area and length, we show that the glacier retreat in the tropical Andes over the last three decades is unprecedented since the maximum extension of the LIA (mid 17th–early 18th century). In terms of changes in mass balance, although there have been some sporadic gains on several glaciers, we show that the trend has been quite negative over the past 50 yr, with a mean mass balance deficit for glaciers in the tropical Andes that is slightly more negative than the computed global average. A break point in the trend appeared in the late 1970s with mean annual mass balance per year decreasing from −0.2m w.e. in the period 1964–1975 to −0.76m w.e. in the period 1976–2010. In addition, even if glaciers are currently retreating everywhere in the tropical Andes, it should be noted that as a percentage, this is much more pronounced on small glaciers at low altitudes that do not have a permanent accumulation zone, and which could disappear in the coming years/decades. Monthly mass balance measurements performed in Bolivia, Ecuador and Colombia showed that variability of the surface temperature of the Pacific Ocean is the main factor governing variability of the mass balance variability at the interannual to decadal time scale. Precipitation did not display a significant trend in the tropical Andes in the 20th century, and consequently cannot explain the glacier recession. On the other hand, temperature increased at a significant rate of 0.10◦Cdecade−1 in the last 70 yr. The higher frequency of El Nin ̃o events and changes in its spatial and temporal occurrence since the late 1970s together with a warming troposphere over the tropical Andes may thus explain much of the recent dramatic shrinkage of glaciers in this part of the world

The Limited Liability Company: A Study of the Emerging Entity

This article reflects the thinking of business and tax lawyers at the dawn of the development of limited liability companies It provides a thorough discussion of the few things known and many questions that existed in 1992 when only a handful of states had LLC legislation Many of the questions have now been resolved some by the checkthebox regulations and some by the more recent limited liability company legislation but the article provides useful background in the development of what was to become a predominating business organizatio