Category: Law

Yak loose in Virginia after escaping transport to the butchers

A yak is on the loose in the US state of Virginia after escaping from a trailer on its way to the butchers.

Meteor, a three-year-old who belongs to farmer Robert Cissell of Nature’s Bridge Farm in Buckingham, Virginia, has been missing since Tuesday.

Mr Cissell told the BBC Meteor had been raised for meat and described the animal as “aloof”.

He said if captured the yak would “most likely live out his life here with our breeding herd”.

Kevin Wright, an animal control supervisor for Nelson County, said: “It broke through a stop sign and we’ve been trying to catch it for a while. It’s a well-mannered creature and clearly doesn’t want to be handled.”

…The animal was seen at a bed and breakfast in the county but is believed to have wandered to the mountains.

Here is the full story, via Michelle Dawson.

Uber and Lyft drivers as employees: check your mood affiliation at the door

A reminder that if drivers become employees and so no longer can be on both Uber and Lyft, welfare will be lower with higher prices and higher wait times. See this paper. papers.ssrn.com/sol3/papers.cf In Australia, driver multihoming is baked in.

That is a tweet from Joshua Gans.  Keep in mind Uber or Lyft could simply insist on “unihoming” as a condition of employment, as indeed George Mason will not let me take a part- or full-time job teaching at another university.

Brazil is not entirely an environmental villain

It is unfair to single out Brazil for criticism. It is one of the world’s greenest countries: over 60 per cent of its territory is covered with natural vegetation, its agriculture grew based on productivity gains and technology rather than land expansion, and about 45 per cent of its energy comes from renewables, compared with a global average of 14 per cent. It also has one of the world’s most stringent land usage regulations, known as the forest code. How many farmers around the world are required to leave aside 20-80 per cent (depending on the biome) of their native forest land?

That is from Sylvia Coutinho from the Financial Times.

My Conversation with Samantha Power

Samantha Power has a new and excellent book out, The Education of an Idealist: A Memoir, which I very much enjoyed.  And so a Conversation with Tyler was in order, here is the audio and transcript, here is one bit:

COWEN: For a final closing segment, I just have some super simple questions about foreign policy again. Over the course of the last summer, Iran apparently seized two British tankers. There’ve been other incidents in the Strait of Hormuz in some way connected with Iran. From a game-theoretic point of view, why would they do this? Why does this make sense?

POWER: Well, the one thing that they would know that would give them some point of leverage is the extreme war fatigue within the United States, and really within the Western world. So, by upping the stakes, arguably — I mean, who knows why the hell they’re doing what they’re doing?

But by upping the stakes, they arguably could be sending a signal like, “You want to get in this game? It’s not as if we’re an island and you can just break the deal, penalize us gratuitously, penalize the people who are still trying to maintain the terms of the deal, and that there won’t be collateral consequences outside the nuclear space.”

Because the nuclear consequences, as they begin to enrich and violate the terms of the deal — having legitimately argued that we had violated the terms of the deal — the effects of those are not day-to-day effects in the news world. It’s a bit abstract for the public and even for policymakers. It’s an incremental abrogation.

But acts like this show that they have leverage, that they are active militarily in parts of the world where we have a vested interest in maintaining freedom of navigation. So I think they’re showing that they can hit in domains outside the nuclear domain. I think that is probably what they’re doing.

Here is another segment:

COWEN: In which ways do you feel your thought is in some manner still Irish in orientation in a way that would distinguish you from, say, American-born individuals?

POWER: It’s hard to know because I can’t run the counterfactual, so I don’t know what’s just because my mother is a physician and very empathetic toward her patients, and do I learn from that? Or am I moved by having come from a small country, at that time a poor country, that was sending —

COWEN: With a history of oppression, right?

POWER: With a history of oppression, with a history of the dignity of its people being trampled. Is that why I care so much about individual dignity? Again, I can’t run the history a different way.

And finally:

COWEN: Very simple — are baseball games too long? Why not make it 7 innings?

POWER: Why not make it 12?

COWEN: It’s boring, right?

POWER: For you and, as it turns out, for others.

COWEN: For me. So many games are over 3 hours. Shouldn’t the game be 2 hours, 17 minutes?

We also cover her first impressions of America, being a wartime correspondent, China and Iraq, Star Wars vs. Star Trek, van Morrison vs. Bob Dylan, robot empires vs. robot umpires, her favorite novel, how personal one should get in a memoir and why, and German defense spending, among other topics.

Definitely recommended.

*Jewish Emancipation: A History Across Five Centuries*

That is the new and excellent book out by David Sorkin.  I feel I have read many good books on Jewish history, and I don’t always see the marginal value of adding to that pile, but this one really delivered.  Plenty more detail without losing any conceptual overview.  Ever wonder what exactly happened to Jewish emancipation, and why, as the Napoleonic conquest of Europe was reversed?  This is the place to go.  By the way, in the middle of the eighteenth century there were more Jews in Curacao, Suriname and Jamaica than in all of the North American colonies combined.

You can order it here, worthy of my year-end “best non-fiction of the year” list.

Do mass shootings lead to liberalized gun laws?

It seems so, at least in Republican-controlled states:

There have been dozens of high-profile mass shootings in recent decades. This paper presents three main findings about the impact of mass shootings on gun policy. First, mass shootings evoke large policy responses. A single mass shooting leads to a 15% increase in the number of firearm bills introduced within a state in the year after a mass shooting. This effect increases with the extent of media coverage. Second, mass shootings account for a small portion of all gun deaths, but have an outsized influence relative to other homicides. Third, when looking at bills that were actually enacted into law, the impact of mass shootings depends on the party in power. The annual number of laws that loosen gun restrictions doubles in the year following a mass shooting in states with Republican-controlled legislatures. We find no significant effect of mass shootings on laws enacted when there is a Democrat-controlled legislature, nor do we find a significant effect of mass shootings on the enactment of laws that tighten gun restrictions.

That is the abstract of a new NBER working paper by Michael Luca, Deepak Malhotra, and Christopher Poliquin.

Do Inheritance Customs Affect Political and Social Inequality?

That is a new paper from Anselm Hager and Hanno Hilbig, here is the abstract:

Why are some societies more unequal than others? The French revolutionaries believed unequal inheritances among siblings to be responsible for the strict hierarchies of the ancien régime. To achieve equality, the revolutionaries therefore enforced equal inheritance rights. Their goal was to empower women and to disenfranchise the noble class. But do equal inheritances succeed in leveling the societal playing field? We study Germany—a country with pronounced local‐level variation in inheritance customs—and find that municipalities that historically equally apportioned wealth, to this day, elect more women into political councils and have fewer aristocrats in the social elite. Using historic data, we point to two mechanisms: wealth equality and pro‐egalitarian preferences. In a final step, we also show that, counterintuitively, equitable inheritance customs positively predict income inequality. We interpret this finding to mean that equitable inheritances level the playing field by rewarding talent, not status.

The potentially surprising bit in there is “equitable inheritance customs positively predict income inequality,” emphasis added by this blogger.

For the pointer I thank the excellent Kevin Lewis.

No man can be judge in his own case

Cash bail and bounty hunters can be an important and useful part of the criminal justice system. The practice in New Orleans, however, of funding court and judicial benefits with a tax on bail is obnoxious. In recent years, the tax on bail has funded 20-25% of the Judicial Expense Fund which is used to pay staff and office supplies, travel and other costs. The 5th U.S. Circuit Court of Appeal was right to affirm that this tax violates a defendant’s due process rights because it gives judges an incentive to require bail for their own benefit rather than to incentivize the defendant’s court appearance.

“No man can be judge in his own case.” Edward Coke, INSTITUTES OF THE LAWS OF ENGLAND, § 212, 141 (1628). That centuries-old maxim comes from Lord Coke’s ruling that a judge could not be paid with the fines he imposed. Dr. Bonham’s Case, 8 Co. Rep. 107a, 118a, 77 Eng. Rep. 638, 652 (C.P. 1610). Almost a century ago, the Supreme Court recognized that principle as part of the due process requirement of an impartial tribunal. Tumey v. Ohio, 273 U.S. 510, 523 (1927).

This case does not involve a judge who receives money based on the decisions he makes. But the magistrate in the Orleans Parish Criminal United States Court of Appeals District Court receives something almost as important: funding for various judicial expenses, most notably money to help pay for court reporters, judicial secretaries, and law clerks. What does this court funding depend on? The bail decisions the magistrate makes that determine whether a defendant obtains pretrial release. When a defendant has to buy a commercial surety bond, a portion of the bond’s value goes to a fund for judges’ expenses. So the more often the magistrate requires a secured money bond as a condition of release, the more money the court has to cover expenses. And the magistrate is a member of the committee that allocates those funds. Arrestees argue that the magistrate’s dual role—generator and administrator of court fees—creates a conflict of interest when the judge sets their bail. We [agree with the district court] that this dual role violates due process.

The plaintiffs also argued that judges must take into account a defendant’s ability to pay when setting bail. The appeals court didn’t rule on that issue but ironically judges who get a percent of the proceeds from bail do have an incentive to take into account ability to pay because only paid bail generates revenues. Eliminating the judge’s cut eliminates the incentive to think about ability to pay. Still, I support the decision. We should try for first best. The theory of second best leads only to madness and ruin.

Rent control doesn’t always lower rents

Using a 1994 law change, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants and landlords. Leveraging new data tracking individuals’ migration, we find rent control limits renters’ mobility by 20 percent and lowers displacement from San Francisco. Landlords treated by rent control reduce rental housing supplies by 15 percent by selling to owner-occupants and redeveloping buildings. Thus, while rent control prevents displacement of incumbent renters in the short run, the lost rental housing supply likely drove up market rents in the long run, ultimately undermining the goals of the law.

That is from a new AER piece by Rebecca Diamond, Tim McQuade and Franklin Qian.

How deregulatory is the Trump administration?

Here is an email from a loyal, anonymous MR reader:

Critics of the administration’s much-ballyhooed deregulatory efforts argue that there’s not really that much there; they contend the White House and agencies have been tinkering around the margins (and helping out special interest groups), but not really addressing regulation’s economic cost. They argue there’s been virtually nothing done to address the bloated corpus of 100 years of accumulated federal regulation, and there’s been no legislative action to change regulatory processes.

The administration’s defenders and their fiercest critics alike argue that Trump has taken a machete to the regulatory state. But aside from naming a few rule changes here or there, they don’t offer much concrete support for their claim.

What’s the steel man case that Trump has broken the back of the administrative state? Some hypothes

1. They haven’t made things worse. After eight years of an administration that was seen (fairly or not) as hostile to business, just taking the boot off the throat of entrepreneurs is a major step forward. Small-business optimism is at pre-crisis levels. The last two years have seen the fewest economically significant final rules promulgated since 1990. Beyond formal rules, the administration has ended the abuse of “dear colleague” letters, guidance documents, and sue-and-settle.

2. Related to #1, there’s been no new legislation along the lines of Sarbanes-Oxley or Dodd-Frank that will take as long as a decade to get regulations worked out. That takes a lot of the uncertainty out of the system.

3. Enforcement has been curtailed. The administrative state is a threat because its enforcement is so capricious and subject to questionable extralegal adjudication. The Trump administration has responded by simply not enforcing many regulations. EPA inspections are down by half; CFPB is asleep at the switch. Enforcement heads are basically emulating Ron Swanson, for the better.

4. The 14 uses of the Congressional Review Act in early 2017 should in fact count as highly deregulatory; it was of course more than had ever been done with this tool in the past. Okay, so the regs in question weren’t yet final or hadn’t been in effect for very long. That’s just playing a baselines game; the bottom line is tens of billions of dollars of costs were cut over what would have been.

5. The record-breaking number of appellate judges appointed by the president and confirmed by the Senate will shift the judiciary to be more skeptical of regulators’ self-aggrandized power. Justice Gorsuch is champing at the bit to eliminate Auer and Chevron deference; overruling these precedents would be game-changing.

6. There’s been more taking place than you think. No, there hasn’t been a huge shakeup of federal departments, but those kinds of things are mostly for show anyway; federal power remains more or less constant, responsibilities just get shifted around. Benefit-cost analyses and regulatory impact analyses done by most agencies are sloppy at best and mostly just a Soviet-style effort to justify what’s already been decided, so they don’t capture the magnitude of what’s happening.

What has happened? The president has appointed people who take regulatory analysis seriously and understand opportunity cost. Some of the deregulation has been in areas most sensitive to the costs of regulation, like labor and energy. ACA individual mandate? Gone. HUD is taking steps to push housing deregulation at the local level; this has gotten almost no attention.

7. There’s more that would have been done but for the “deep state.” It’s a matter of public choice economics, not AM radio conspiracies, that regulators may not be enthusiastic about deregulating. For instance, Trump’s much-trumpeted two-out-one-in executive order for federal regulations was largely kneecapped by OMB so that over 90% of new regulations are deemed exempt from the order. Given inherent resistance to change (again, for perfectly understandable reasons, this is not a conspiracy), it’s amazing that anything has been done at all!

My Conversation with Hollis Robbins

Here is the audio and video, here is part of the CWT summary:

Now a dean at Sonoma State University, Robbins joined Tyler to discuss 19th-century life and literature and more, including why the 1840s were a turning point in US history, Harriet Beecher Stowe’s Calvinism, whether 12 Years a Slave and Django Unchained are appropriate portraits of slavery, the best argument for reparations, how prepaid postage changed America, the second best Herman Melville book, why Ayn Rand and Margaret Mitchell are ignored by English departments, growing up the daughter of a tech entrepreneur, and why teachers should be like quarterbacks.

Here is one excerpt:

COWEN: You’ve written a good deal on the history of the postal service. How did the growth of the postal service change romance in America?

ROBBINS: Well, everybody could write a letter. [laughs] In 1844 — this was the other exciting thing that happened in the 1840s. Rowland Hill in England changed the postal service by inventing the idea of prepaid postage. Anybody could buy a stamp, and then you’d put the stamp on the letter and send the letter.

Prior to that, you had to go to the post office. You had to engage with the clerk. After the 1840s and after prepaid postage, you could just get your stamps, and anybody could send a letter. In fact, Frederick Douglass loved the idea of prepaid post for the ability for the enslaved to write and send letters. After that, people wrote letters to each other, letters home, letters to their lovers, letters to —

COWEN: When should you send a sealed letter? Because it’s also drawing attention to itself, right?

ROBBINS: Well, envelopes — it’s interesting that envelopes, sealed envelopes, came about 50 years after the post office became popular, so you didn’t really have self-sealing envelopes until the end of the 19th century.

COWEN: That was technology? Or people didn’t see the need for it?

ROBBINS: Technology, the idea of folding the envelope and then having it be gummed and self-sealing. There were a number of patents, but they kept breaking down. But technology finally resolved it at the end of the 19th century.

Prior to that, you would write in code. Also, paper was expensive, so you often wrote across the page horizontally and then turned it to the side and crossed the page, writing in the other direction. If somebody was really going to snoop on your letters, they had to work for it.

COWEN: On net, what were the social effects of the postal service?

ROBBINS: Well, communication. The post office and the need for the post office is in our Constitution.

COWEN: It was egalitarian? It was winner take all? It liberated women? It helped slaves? Or what?

ROBBINS: All those things.

COWEN: All those things.

ROBBINS: But yeah, de Tocqueville mentioned this in his great book in the 1830s that anybody — some farmer in Michigan — could be as informed as somebody in New York City.

And:

COWEN: Margaret Mitchell or Ayn Rand?

ROBBINS: Well, it’s interesting that two of the best-selling novelists of the 20th-century women are both equally ignored by English departments in universities. Margaret Mitchell and Gone with the Wind is paid attention to a little bit just because, as I said, it’s something that literature and film worked against, but not Ayn Rand at all.

And:

COWEN: What’s a paradigmatic example of a movie made better by a good soundtrack?

ROBBINS: The Pink Panther — Henry Mancini’s score. The movie is ridiculous, but Henry Mancini’s score — you’re going to be humming it now the rest of the day.

And:

COWEN: What is the Straussian reading of Babar the Elephant?

ROBBINS: When’s the last time you read it?

COWEN: Not long ago.

Recommended throughout.

Why don’t people talk about breaking up Microsoft?

By the excellent Alec Stapp, here is the closing bit:

Or perhaps Microsoft has successfully avoided receiving the same level of antitrust scrutiny as the Big Four because it is neither primarily consumer-facing like Apple or Amazon nor does it operate a platform with a significant amount of political speech via user-generated content (UGC) like Facebook or Google (YouTube). Yes, Microsoft moderates content on LinkedIn, but the public does not get outraged when deplatforming merely prevents someone from spamming their colleagues with requests “to add you to my professional network.”

Microsoft’s core areas are in the enterprise market, which allows it to sidestep the current debates about the supposed censorship of conservatives or unfair platform competition. To be clear, consumer-facing companies or platforms with user-generated content do not uniquely merit antitrust scrutiny. On the contrary, the benefits to consumers from these platforms are manifest. If this theory about why Microsoft has escaped scrutiny is correct, it means the public discussion thus far about Big Tech and antitrust has been driven by perception, not substance.

Here is the whole article.  I would say there is very little about the current version of Microsoft that challenges the supposedly correct status relations in American society.

Marijuana complacency sentences to ponder

…an additional dispensary in a neighborhood leads to a reduction of 17 crimes per month per 10,000 residents, which corresponds to roughly a 19 percent decline relative to the average crime rate over the sample period. Reductions in crime are highly localized, with no evidence of spillover benefits to adjacent neighborhoods.

That is from a newly published paper by Jeffrey Brinkman and David Mok-Lamme, via the excellent Kevin Lewis.

Is the trade war with China a carbon tax?

I know that in my Twitter feed I am told a “carbon tax is GOOD” and the “Trumpian trade war with China is BAD.”  But isn’t Trump’s trade war, at least indirectly, a tax on carbon emissions?

Most Chinese exports are manufactured goods, and they are produced in a fairly carbon-intensive manner.  Furthermore, it doesn’t seem that Vietnam is able to pick up the slack, so it is not just a case of substituting from one dirty carbon emitter to another.  It seems the trade war is genuinely restricting trade, and over time it will restrict the consumption and production of carbon-intensive goods.  China is by far the exporter with the most to lose.

Of course the targeting of these new taxes is far from ideal from an environmental point of view, nor are they contingent on emissions in the proper manner (still, China is hardly on the verge of being able to switch into clean manufacturing, and in that sense contingent may not matter so much).  And it is hardly the case that Trump has “green motives.”

Still, put aside all the imperfections — don’t we finally have a carbon tax — and a framework for improving it — that so many commentators have been wanting all along?  Won’t this give Elizabeth Warren the chance to really fine-tune the apparatus?

On these points I am indebted to some remarks from Ray Lopez.  And here is my earlier 2016 post “Tyrone on why Democrats should vote for Donald Trump.

Addicted to Fines

Governing: Like many other rural jurisdictions, towns in south Georgia have suffered decades of a slow economic decline that’s left them without much of a tax base. But they see a large amount of through-traffic from semi-trucks and Florida-bound tourists. And they’ve grown reliant on ticketing them to meet their expenses. “Georgia is a classic example of a place where you have these inextricable ties between the police, the town and the court,” says Lisa Foster, co-director of the Fines and Fees Justice Center. “Any city that’s short on revenue is going to be tempted to use the judicial system.”

… in hundreds of jurisdictions throughout the country, fines are used to fund a significant portion of the budget…In some extreme cases, local budgets are funded almost exclusively by fines. Georgetown, La., a village of fewer than 500 residents, was the most reliant on fines of all reviewed nationally. Its 2018 financial statement reported nearly $500,000 in fines, accounting for 92 percent of general revenues. Not far behind is Fenton, La., which reported more than $1.2 million in fines, or 91 percent of 2017 general fund revenues.

In To Serve and Collect (forthcoming Journal of Legal Studies) Makowsky, Stratmann and myself find that the allure of fine and forfeiture revenue can distort policing by shifting arrests towards crimes and misdemeanors with greater potential for revenue rather than greater social harm.

There is, however, some good news. The U.S. Supreme Court ruled that the Constitution’s ban on excessive fines applies to states and localities and that is putting pressure of them to reform. My co-author Mike Makowsky has a good suggestion:

The way governments allocate fine revenue also matters. The majority deposit it into their general fund, but many in Oklahoma, for example, route the money to separate police or public safety funds. That’s a mistake, says Michael Makowsky, an economics professor at Clemson University in South Carolina. “You want to separate officer incentives from the revenues they generate,” he says. One solution he proposes is to route fines and fees to state governments. States would then redistribute all the funds back as block grants based on population or other metrics, effectively removing incentives to issue tickets.

The Governing report is good and links to more data.