Contracting in the Absence of Specific Investments and Moral Hazard: Understanding Carrier-Driver Relations in U.S. Trucking

This paper considers functions of contracting other than the protection of relationship-specific investments and the provision of marginal incentives, and applies the theory to explain variation in the form of compensation of over-the-road truck drivers in the U.S. Specifically, we argue that contracts in this industry serve to economize on the costs of price determination for heterogeneous transactions. We show that the actual terms of those contracts vary systematically with the nature of hauls in a way that is consistent with the theory. By contrast, we find that vehicle ownership, which defines a driver's status as an owner operator or company driver, depends on driver, but not trailer or haul, characteristics.

Authority and Commitment: Why Universities, Like Legislatures, Are Not Organized as Firms

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/71954/1/j.1530-9134.2006.00113.x.pd

On the Evolution of Collective Enforcement Institutions: Communities and Courts

We analyze the capacities of communities (or social networks) and courts to secure cooperation among heterogeneous, impersonal transactors. We find that communities and courts are complementary in that they tend to support cooperation for different types of transactions but that the existence of courts weakens the effectiveness of community enforcement. Our findings are consistent with the emergence of the medieval Law Merchant and its subsequent supersession by state courts as changes in the costs and risks of long-distance trade, driven in part by improvement in shipbuilding methods, altered the characteristics of merchant transactions over the course of the Commercial Revolution in Europe. We then contrast the European experience with the evolution of enforcement institutions in Asia over the same period.http://deepblue.lib.umich.edu/bitstream/2027.42/89968/1/1169_Masten.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/89968/4/1169_Masten_Sept12.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/89968/6/1169_masten_apr13.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/89968/8/1169_Masten_Feb14.pd

National study of teen driver licensing systems and graduated driver licensing program core components

Sixteen- and seventeen-year-old drivers have higher crash rates than any other age group. Graduated driver licensing (GDL) programs, which are specialized driver licensing systems for beginner drivers, have been implemented in most U.S. states to reduce young teen drivers' exposures to high-risk driving situations while they gain driving experience. Driver fatal crash involvements for all U.S. states from 1986-2007 were analyzed using Poisson regression models to estimate the associations of GDL programs with 16-, 17-, 18-, and 19-year-old crash incidences. GDL programs were reliably associated with 16-26% lower driver fatal crash incidence for 16 year olds, but 10-12% higher incidence for 18 year olds, dependent upon the number of license restrictions included during the intermediate licensing stage. GDL programs with two license restrictions during the intermediate licensing stage were marginally associated with 9% lower 17-year-old driver fatal crash incidence. The benefits of GDL programs in terms of reducing 16- and 17-year-old driver fatal crash involvements were found to outweigh the increased involvements among 18 year olds associated with such programs. Overall, 544 fewer net 16-19-year-old driver fatal crash involvements during the 12-year period since the first U.S. GDL program was implemented are attributable to having specialized teen driver licensing systems. The majority of the net crash reduction (470 involvements) is attributable to implementing three-stage GDL programs. At least one calibration for each GDL program core component, except supervised driving hours, was associated with a net decrease in 16-19-year-old driver fatal crash involvements. The calibrations of the GDL program core components associated with the largest net 16-19-year-old driver fatal crash involvement savings are: (a) a minimum learner stage entry age of 16 years; (b) a minimum learner permit holding period of 9-12 months; (c) no minimum number of required supervised driving hours; (d) an intermediate licensing stage starting at age 16.5-17 years; (e) a nighttime driving restriction starting at 11:00 pm; (f) a passenger restriction allowing no more than one teen passenger that lasts for 6 months or longer; and (g) unrestricted licensure starting at age 17-17.4 years

Ethics vs. economics: The issue of free trade with Mexico

The authors, one an ethicist and the other an economist, look at the issue of free trade with Mexico and other low wage rate countries from the viewpoints of their disciplines. The conclusion of the paper is that these disciplines differ on their priorities and analytical methods, not on their objectives.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/42515/1/10551_2004_Article_BF00871899.pd

Vertical integration and firm boundaries : the evidence

Since Ronald H. Coase's (1937) seminal paper, a rich set of theories has been developed that deal with firm boundaries in vertical or input–output structures. In the last twenty-five years, empirical evidence that can shed light on those theories also has been accumulating. We review the findings of empirical studies that have addressed two main interrelated questions: First, what types of transactions are best brought within the firm and, second, what are the consequences of vertical integration decisions for economic outcomes such as prices, quantities, investment, and profits. Throughout, we highlight areas of potential cross-fertilization and promising areas for future work

Meeting Report: Mode(s) of Action of Asbestos and Related Mineral Fibers

Background: Although asbestos in general is well known to cause a range of neoplastic and non-neoplastic human health effects, not all asbestos fiber types have the same disease-causing potential, and the mode of action (MOA) of specific types of asbestos and related fibers for various health outcomes are not well understood