The modern doctrine of the “fresh start” reflects the differences between the past paradigm of punishment of the insolvent person and the current focus on the economic effectiveness and activeness. Global practice in the field of insolvency shows that the “limited liability rule” is eminently effective in the economic and social perspective. The appending threat of abuse and misapplication of the system might be neutralized through the legal regulation of prevention and rehabilitation means, which are analyzed in this article. The (...) aim of this research is to: 1) present a summary of the paradigm of bankruptcy of natural persons; 2) evaluate the categories of prevention and rehabilitation means set in the Lithuanian concept of the bankruptcy of natural persons; 3) identify the physical factors affecting the bankruptcy of natural persons; 4) provide a conceptual model of rehabilitation after bankruptcy and insolvency prevention measures have been implemented in the field of bankruptcy of natural persons. (shrink)

Every corporation has an economic and moral responsibility to its stockholders to perform well financially. However, the number of bankruptcies in Slovakia has been growing for several years without an apparent macroeconomic cause. To prevent a rapid denigration and to prevent the outflow of foreign capital, various efforts are being zealously implemented. Robust analysis using conventional bankruptcy prediction tools revealed that the existing models are adaptable to local conditions, particularly local legislation. Furthermore, it was confirmed that most of these (...) outdated tools have sufficient capability to warn of impending financial problems several years in advance. A novel bankruptcy prediction tool that outperforms the conventional models was developed. However, it is increasingly challenging to predict bankruptcy risk as corporations have become more global and more complex and as they have developed sophisticated schemes to hide their actual situations under the guise of “optimization” for tax authorities. Nevertheless, scepticism remains because economic engineers have established bankruptcy as a strategy to limit the liability resulting from court-imposed penalties. (shrink)

The safeguarding of credit represents one of the most important economic and juridical challenges for every complex society. Just by reading the news we can realize how current this topic is for us. By thinking back over the history of ideas and the social, economic, and political reasons that got Law makers to legislate on this subject, we can better understand what’s happening today and in which direction our societies are going. An analysis of the Italian juridical system’s development on (...) bankruptcy proceedings, starting from the attitude of ancient Roman law on over-indebtedness, can effectively shine light on the current regulation, reformed in 2006. This new bankruptcy law transforms the previous public nature of bankruptcy proceedings into a prevailingly private management of enterprises’ financial problems, completely changing the course of credit policy. The “Italian way” is just one result of an international trend, the guiding lines of which can be seen throughout the whole EU and also in the regulation of the USA. This historical-comparative perspective, in all its positive and negative potentiality, is an important paradigm. The final hope is that historians can perhaps give their contribution to more conscious reflections on important topics like this one, offering to other scholars the possibility to have a wider view on this juridical phenomenon. (shrink)

The fundamental ethical problem in bankruptcy is that insolvents have promised to pay their debts but can not keep their promise. The Ethics of Bankruptcy examines the morality of bankruptcy. The author compares and contrasts the Humean doctrine of promises as useful conventions with the Kantian view of autonomous agency constituting promissory obligations; he explores ethical concerns raised by forgiveness, utilitarianism and distributive justice and the moral aspects of insolvents' contractual, fiduciary, tortious and criminal liability. Finally, (...) the author assesses recent bankruptcy law reforms. Bankruptcies severly hurt creditors and society. For the insolvents and their families the experience is painful and stigmatising, yet philosophers have paid little attention to the moral aspects of this violent social phenomenon. The Ethics of Bankruptcy is the first comprehensive study that employs the tools of ethics to examine the controversies surrounding insolvency, which makes valuable and sometimes controversial reading in a decade recovering from the Recession. (shrink)

The ancient problems of bankruptcy, contested garment, and rights arbitration have generated many studies, debates, and controversy. The objective of this paper is to show that the Shapley value from game theory, measuring the power of each player in a game, may be consistently applied for getting the general one-step solution of all these three problems viewed as -person games. The decision making is based on the same tool, namely the game theory logic based on the use of the (...) Shapley value, but the specific games involved are slightly different in each problem. The kind of claims of the players, the relationship between the given claims and the given resources available, and the particular way of calculating the generalized characteristic function of the game determine the specific type of game which has to be solved in each of the three ancient problems mentioned. The iterative use of the Shapley value may also justify the well-known Aumann-Maschler step-by-step procedure for solving the bankruptcy problem. (shrink)

The fundamental ethical problem in bankruptcy is that insolvents have promised to pay their debts but can not keep their promise. _The Ethics of Bankruptcy_ examines the morality of bankruptcy. The author compares and contrasts the Humean doctrine of promises as useful conventions with the Kantian view of autonomous agency constituting promissory obligations; he explores ethical concerns raised by forgiveness, utilitarianism and distributive justice and the moral aspects of insolvents' contractual, fiduciary, tortious and criminal liability. Finally, the (...) author assesses recent bankruptcy law reforms. Bankruptcies severly hurt creditors and society. For the insolvents and their families the experience is painful and stigmatising, yet philosophers have paid little attention to the moral aspects of this violent social phenomenon. _The Ethics of Bankruptcy_ is the first comprehensive study that employs the tools of ethics to examine the controversies surrounding insolvency, which makes valuable and sometimes controversial reading in a decade recovering from the Recession. (shrink)

There have been several recent lawsuits in which problem gamblers (or those affected by problem gambling) have sued casinos or other gaming companies for damages relating to bankruptcies, suicides, and other negative consequences of compulsive gambling. Although the legal cases have been decided in favor of the gaming companies, it can seem as though there is a moral residue in some of these cases: perhaps some of the actions of the gaming companies, though legal, have been morally problematic. (...) This case invites students to explore this possibility by introducing them to the facts surrounding the lawsuits and highlighting some of the most salient moral considerations. Students will also be asked to reflect on the public policy implications, if any, of their findings. (shrink)

This essay explores the tension between those who find value in the example of the religious life and others who take the intellectual bankruptcy of religious doctrines as recommending the complete abandonment of religion. It briefly describes John Dewey’s attempt to overcome this tension through a rethinking of the religious life and the sources of its continuing value and purpose. Dewey responds to this conflict over religion by attempting to emancipate its fundamental valuefrom the constraints of any supernatural affiliation. (...) He thereby suggests a more inclusive conception of the religious experience that permeates all aspects of social life. It is argued that Dewey’s attempt to find alternative outlets for religious values within our larger social community provides a better platform for dialogue across social divisions, since it does not begin from a secular standpoint that simply rejects the import of any sort of religious value. (shrink)

As it is known, there is no rule satisfying Additivity in the complete domain of bankruptcy problems. This paper proposes a notion of partial Additivity in this context, to be called µ-additivity. We find that µ-additivity, together with two quite compelling axioms, anonymity and continuity, identify the Minimal Overlap rule, introduced by Neill (1982).

The unity of the group mind is a psychoplastic unity. In the group mind subjects are integrated through an object and not objects through a subject. It follows, among many much more important consequences, that a scientific analysis and arrangement of the law relating to corporations should proceed in the manner practically indicated in the Law of Limited Companies, Corporations Sole, Trusts, Bankruptcy, Local Government, and so forth, that is to say, by the estatificatian of interests and not by (...) the pretended incorporation of people. (shrink)

Economists and legal scholars routinely posit an implicit contract between Japanese firms and their principal lender. Under this arrangement, the bank implicitly agrees to rescue the firm when times turn bad. Out of court, it rescues the firm from insolvency. Not only does it save the investments specific to the troubled firm, it lowers the use of costly bankruptcy proceedings and cuts the costs of those bankruptcy procedures firms do occasionally invoke. Given the creditor-shareholder conflicts of interest that (...) arise as firms approach insolvency, such arrangements would seem unstable. Yet according to a long sociological tradition, conflicts of interest matter less in Japan than in the West. According to the emerging economic and legal tradition, Japanese economic actors do face those conflicts, but keep them in check through reputational concerns, close-knit ties, and government supervision. Using two datasets of troubled firms from the 1970s and 1980s, we ask whether Japanese main banks in fact rescue distressed borrowers. We find no evidence that they do: large Japanese firms fail; when large firms approach insolvency, main banks do not increase the share of the firm’s debt they bear; stronger ties between distressed firms and their main bank do not facilitate loans; and troubled firms do not try to preserve their main bank relationship. All told, the claim that Japanese banks ever implicitly agreed to rescue firms is sheer myth. That Japanese banks let troubled firms fail is no recent development; it has been thus for decades. Conflicts of interest do indeed matter in Japan and long have. They matter enough to prevent precisely the incentive-incompatible rescue deals that scholars in the field so routinely posit. (shrink)

This paper studies axiomatic characterizations of the constrained equal awards rule for bankruptcy problems. We show that many results apply in a much more general context than for which they are originally formulated. In particular, we generalize several axiomatic characterizations based on symmetry, sustainability, and consistency to the domain of bankruptcy problems with nontransferable utility.

L’objet de la présente recherche est d’interroger les mérites de la théorie utilitariste relative aux faillites personnelles, qui est dominante dans la littérature juridique depuis que le courant Law and Economics a gagné en importance. Nous démontrons que l’argumentation utilitariste, qui est assignée aux doctrines de l’acquittement des dettes personnelles par les spécialistes de Law and Economics travaillant dans le domaine du droit des faillites, soulève des questions normatives de taille et créée des tensions quand il s’agit de décrire le (...) phénomène. Ces deux problèmes invitent les théoriciens à proposer des modèles alternatifs pour décrire les conditions dans lesquelles nos systèmes juridiques soulagent les dettes des individus qui ne sont pas en mesure de les honorer. Dans notre ouvrage à paraître, The Virtue of Bankruptcy, nous embrassons ce projet. Ici, nous proposons une étape préliminaire à ce projet plus ambitieux en démontrant que les théories utilitaristes sur lesquelles s’appuient les contributions les plus importantes de la littérature sur la question à ce jour sont perfectibles lorsqu’il s’agit de comprendre les raisons et les circonstances dans lesquelles il est possible d’offrir un nouveau départ à ceux qui n’ont pas respecté leurs obligations financières. (shrink)

The BankXX system models the process of perusing and gathering information for argument as a heuristic best-first search for relevant cases, theories, and other domain-specific information. As BankXX searches its heterogeneous and highly interconnected network of domain knowledge, information is incrementally analyzed and amalgamated into a dozen desirable ingredients for argument (called argument pieces), such as citations to cases, applications of legal theories, and references to prototypical factual scenarios. At the conclusion of the search, BankXX outputs the set of argument (...) pieces filled with harvested material relevant to the input problem situation.This research explores the appropriateness of the search paradigm as a framework for harvesting and mining information needed to make legal arguments. In this article, we describe how legal research fits the heuristic search framework and detail how this model is used in BankXX. We describe the BankXX program with emphasis on its representation of legal knowledge and legal argument. We describe the heuristic search mechanism and evaluation functions that drive the program. We give an extended example of the processing of BankXX on the facts of an actual legal case in BankXX's application domain — the good faith question of Chapter 13 personal bankruptcy law. We discuss closely related research on legal knowledge representation and retrieval and the use of search for case retrieval or tasks related to argument creation. Finally we review what we believe are the contributions of this research to the understanding of the diverse disciplines it addresses. (shrink)

Consumer bankruptcy scholars typically stress either a structural or a cultural account of individuals’ problems with debt. Drawing on the history of poverty research, this article argues that research on consumer overindebtedness and bankruptcy should avoid the pitfall of seeing structural and cultural factors as opposing explanations. Deregulation of the credit industry and an incomplete social safety net are key structural conditions that lead to a culture hospitable to overindebtedness. Furthermore, the interaction of structure and culture has practical (...) policy implications. Structural changes such as interest-rate deregulation inevitably transform both business and consumer culture. Policies designed to create a different consumer culture will have a hard time when pitted against strong structural causes of overindebtedness. At a minimum, efforts to create a culture of personal financial responsibility need a strong structural base, such as public education starting at a young age, and could easily require a generation or more to take hold. (shrink)

This paper uses the bankruptcy proceedings for Enron to discuss the role of financial institutions in business transactions. Using recent work by Dixit a business transaction is portrayed as a prisoners' dilemma problem between competing firms. The financial institution's role in this world is to provide information and enforce contracts so that the parties to the business deal act cooperatively. This role is recognized in the law under the heading of Fiduciary Responsibility. In the Enron case the (...) class='Hi'>bankruptcy examiner has argued that the Tier 1 financial institutions for Enron failed to carry out their fiduciary responsibility. As a result, the examiner has asked a fact finder to subordinate the claims of the Tier 1 financial institutions to other debt holders for Enron. (shrink)

Moral Seduction Theory suggests that auditors are morally compromised by the perceived consequences of their opinions. The root of the auditing problem appears to result in an unintentional bias rather than in dishonesty. Although important accounting reforms have been taken to deal with auditors' trustworthiness, their lack of independence has not been adequately addressed. The new regulation (Sarbanes-Oxley Act) is a consequence of an incorrect understanding of the main true source of auditor's biases. We have developed a cognitive approach (...) by connecting the Throughput Model (TM) to the Moral Seduction Theory. This approach allows a better understanding of how conflicts of interest lead auditors to avoid the issuance of warning signals to stakeholders. We have tested our model by conducting a hypothetical scenario with eighty experienced auditors from international accounting firms. Our results confirm auditors' unintentional reluctance to issue qualified audit opinions alerting investors due to their fear of precipitating clients' final bankruptcy. The main implication is that, more than a regulation, effort should be made in monitoring those conflicts of interest to reduce unintentional bias. (shrink)

Clifford, Dick The world outlook is rather grim. Greece is bankrupt, the efforts to cure the problem by making new loans to the banks and cutting living standards is likely only to postpone the date when bankruptcy is declared. Italy and Spain are in a similar position. Britain, Europe and the USA are loaded with debt, only a few countries like Iceland are adopting methods which are the reverse of what conventional economics requires and seem to be recovering (...) from their problems slowly. (shrink)

Fraud, speculative bubbles and collapse, plus the resulting bankruptcies and hard times are a continuing part of the corporate environment. The 21st century is no exception, and its first decade has seen more than its share of abuse. This is somewhat surprising, given the level of regulation and oversight required. The focus here is primarily on Enron as a microcosm of all that can go wrong in a sophisticated, high-tech environment. Enron represents the long-term use of greed based primarily on (...) executive compensation incentives; poor corporate governance; executives willing to break the law or overlook others who did; the use of political lobbying; plus accommodating auditors, attorneys, analysts and regulators. Other fraud and abuse cases considered include WorldCom, Tyco, and Adelphi. In addition, the widespread corruption associated with the stock options scandals and the current housing collapse/banking crisis are reviewed, suggesting that the massive regulatory effort of Sarbanes-Oxley and other reforms have not solved the underlying problems. (shrink)

Over the years, mathematics and statistics have become increasingly important in the social sciences1 . A look at history quickly confirms this claim. At the beginning of the 20th century most theories in the social sciences were formulated in qualitative terms while quantitative methods did not play a substantial role in their formulation and establishment. Moreover, many practitioners considered mathematical methods to be inappropriate and simply unsuited to foster our understanding of the social domain. Notably, the famous Methodenstreit also concerned (...) the role of mathematics in the social sciences. Here, mathematics was considered to be the method of the natural sciences from which the social sciences had to be separated during the period of maturation of these disciplines. All this changed by the end of the century. By then, mathematical, and especially statistical, methods were standardly used, and their value in the social sciences became relatively uncontested. The use of mathematical and statistical methods is now ubiquitous: Almost all social sciences rely on statistical methods to analyze data and form hypotheses, and almost all of them use (to a greater or lesser extent) a range of mathematical methods to help us understand the social world. Additional indication for the increasing importance of mathematical and statistical methods in the social sciences is the formation of new subdisciplines, and the establishment of specialized journals and societies. Indeed, subdisciplines such as Mathematical Psychology and Mathematical Sociology emerged, and corresponding journals such as The Journal of Mathematical Psychology (since 1964), The Journal of Mathematical Sociology (since 1976), Mathematical Social Sciences (since 1980) as well as the online journals Journal of Artificial Societies and Social Simulation (since 1998) and Mathematical Anthropology and Cultural Theory (since 2000) were established. What is more, societies such as the Society for Mathematical Psychology (since 1976) and the Mathematical Sociology Section of the American Sociological Association (since 1996) were founded. Similar developments can be observed in other countries. The mathematization of economics set in somewhat earlier (Vazquez 1995; Weintraub 2002). However, the use of mathematical methods in economics started booming only in the second half of the last century (Debreu 1991). Contemporary economics is dominated by the mathematical approach, although a certain style of doing economics became more and more under attack in the last decade or so. Recent developments in behavioral economics and experimental economics can also be understood as a reaction against the dominance (and limitations) of an overly mathematical approach to economics. There are similar debates in other social sciences. It is, however, important to stress that problems of one method (such as axiomatization or the use of set theory) can hardly be taken as a sign of bankruptcy of mathematical methods in the social sciences tout court. This chapter surveys mathematical and statistical methods used in the social sciences and discusses some of the philosophical questions they raise. It is divided into two parts. Sections 1 and 2 are devoted to mathematical methods, and Sections 3 to 7 to statistical methods. As several other chapters in this handbook provide detailed accounts of various mathematical methods, our remarks about the latter will be rather short and general. Statistical methods, on the other hand, will be discussed in-depth. (shrink)

As the only nation in the western world without a national health insurance program, the United States faces ongoing issues of access and fairness in health care coverage. The Clinton administration tried and failed to address the problem of universal coverage. Since then we have focused on the narrower, but nonetheless real, issues of fairness and equity in the benefits package provided in insurance plans. The LORAN Commission spent two years trying to devise agreed-upon principles to govern such issues. (...) The lesson learned was the same as that of the Ethics Force study: there was no possibility of getting agreement, let alone consensus, among the participants on how to decide what should be a covered benefit. There were, however, two generally agreed upon principles that emerged regarding health care: “Every individual should be treated alike,” and “When it comes to health, cost cannot be a consideration.” That formula translated into providing everyone with everything. The only certain outcome from such a policy would be fiscal insolvency and ultimately bankruptcy. (shrink)

The issues of the optimum rate between risk and profitability of bank business have been investigated. The bank operation peculiarities in risk and uncertain conditions are studied. There has been revealed a matter of risk as bank and economic term, it has been presented interlink between various risks and the necessity to improve the managerial process by bank credit risk has been justified. Practical algorithms for solving problems on possible bank credit risks prognosis have been considered and there has been (...) justified the reasonability of their using by banks at practical assessment of creditability of a borrower. A situational simulation of the part of bank's overdue loan debts under different conditions was carried out. The variants of possible developments of bank's credit portfolio during financial crisis were forecasted using conventional examples. According to the calculation banks have been offered to develop their own credit strategy by simulating various situations choosing the most convenient as to risk value as well as to minimize their credit risks and improving an assessment of creditability of borrowers in addition to assessment models, developed by a bank, well-known assessment models of the bankruptcy probabilities, which, by comparing all of them, give the clear picture of possible financial deterioration in future and to use A-calculation method which is based considering subjective factors which, not less than objective ones, can indicate the risk of the loan debts. (shrink)

The recent declaration of the largest municipal bankruptcy in US history has propelled Detroit’s plight into the international spotlight. Though a victim of the general decline of US manufacturing, drawing on Thomas Sugrue’s pioneering work I argue that Detroit’s crisis is better understood as a specifically urban crisis. The city’s concentrated poverty and desolation and its fiscal straits are not reducible to broader economic trends, nor are they exclusively the product of political mismanagement. Rather, they are the outcome of (...) a long history of economic decentralization and racial segregation, made worse by a politico-administrative arrangement that distributes wealth and services unequally across the metropolitan area. By imposing municipal austerity, Detroit’s bankruptcy is unlikely to do much to address these fundamental inequalities. Any plan to revitalize the city must move beyond boosterism and tackle head on the problems of racial and economic segregation that continue to affect Detroit’s 700,000 residents. (shrink)

Private law and regulation are constantly involved in the evaluation of conflicts of interest, judging some of them salutary, with others requiring adjustment. Focusing on the question of conflicts of interest allows us to clarify our vision of when such adjustment is appropriate and, more specifically, when the law should supply an infrastructure for cooperative behavior. Thus, the prism of conflicts of interest provides a lens through which to view basic legal problems that turn on whether individual actors will be (...) deemed responsible to some joint interest or whether they will be at liberty to pursue their individual interests despite the adverse effects of such activity on others. This article proposes a conflicts of interest perspective for examining contract law and its immediate surroundings. It suggests a map of conflicts of interest along three axes: the remedial axis; the axis of positive duties to avoid conflicts; and the axis of the transition from independence to loyalty. Applying the map to contract doctrine, the article examines a number of contract doctrines including: remedies for breach of contract; modification; conditions; good faith in performance; and formation. The article goes on to apply the map of conflicts to two complex fact situations: corporate acquisitions and corporate bankruptcies. The analysis underscores the fact that conflicts of interest rules do not simply protect existing interests, but also contribute to the very constitution of those interests. Recognizing the constitutive role of legal rules raises questions about our ability to determine interests ex ante and thus calls for a more nuanced approach to gauging the incentive effects of a legal regime. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:A Defense of Fundamental Principles and Human Rights: A Reply to Robert Baker *Ruth Macklin (bio)AbstractThis article seeks to rebut Robert Baker’s contention that attempts to ground international bioethics in fundamental principles cannot withstand the challenges posed by multiculturalism and postmodernism. First, several corrections are provided of Baker’s account of the conclusions reached by the Advisory Committee on Human Radiation Experiments. Second, a rebuttal is offered to Baker’s claim (...) that an unbridgeable moral gap exists between Western individualism and non-Western communalism. In conclusion, this article argues that Baker’s “nonnegotiable primary goods” cannot do the work of “classical human rights” and that the latter framework is preferable from both a practical and a theoretical standpoint.Robert baker has written two interesting and thoughtful essays in support of his theory of international bioethics (Baker 1998a & b). Both essays are rich in content and comprehensive in scope. In the first of the two, “Multiculturalism, Postmodernism, and the Bankruptcy of Fundamentalism”—hereafter, “Multiculturalism”—Baker argues that attempts to ground international bioethics in fundamental principles cannot withstand the challenges posed by multiculturalism and postmodernism. As one of the bioethicists whose writings are the object of Baker’s critique, I undertake in this reply first, to elaborate my own position and to comment on related aspects of Baker’s thesis. 1 Next, I offer some corrections of Baker’s account of the conclusions reached by the Advisory Committee on Human Radiation Experiments, of which I was a member. Finally, I compare Baker’s “nonnegotiable [End Page 403] primary goods” with “classical human rights” and conclude that the latter framework is preferable from both a practical and a theoretical standpoint.In his second essay, “The Negotiable and the Non-Negotiable”—hereafter, “The Negotiable”—Baker puts forth a positive theory designed to meet the challenges of multiculturalism and postmodernism and, at the same time, to justify transcultural and transhistorical moral judgments. Baker (1998a, p. 203) describes his theoretical model as an effort “to validate the conception of international bioethics as a continually renegotiated moral order.” Although I find Baker’s proposal intriguing, I believe his rejection of fundamental principles can result in an unacceptable ethical relativism. To abandon “classical human rights,” along with the fundamental moral principles from which they derive, opens the door to all forms of cultural oppression in the name of “the most fundamental of all human rights, the right to define primacy for oneself” (Baker 1998b, p. 246). Alternatively, one can view Baker’s “nonnegotiable primary goods” as virtually equivalent to classical human rights, but much more difficult to identify, both theoretically and practically.Moral FundamentalismThe difference between my defense of universal moral principles and Baker’s critique rests, at least in part, on an interpretation of what is meant by “moral fundamentalism.” (I must confess to a distaste for the ‘ism’ because of the connotations and consequences of fundamentalism in other spheres.) Baker (1998a, p. 203) defines “moral fundamentalism” as the position “that certain basic or fundamental moral principles are accepted in all eras and cultures and thus are universally applicable to agents and actions in any era or culture.” A central feature of this definition is the requirement that all eras and cultures accept these fundamental moral principles. By this definition, the position I embrace does not count as “moral fundamentalism,” because I maintain that certain fundamental moral principles ought to be binding on all cultures or societies even if those cultures or societies do not accept them. 2 Universal acceptance is not a necessary condition for universal applicability.Part of the problem with Baker’s (and probably also my own) analysis is that it shifts constantly and imperceptibly back and forth between a variety of concepts: “moral principles,” “ethical standards,” “morality,” and “moral judgments.” In one instance, Baker (1998a, p. 209) notes my citation of a remark of Ruth Benedict (1934) that “morality differs in [End Page 404] every society.” That is what Ruth Benedict wrote; but nowhere did she specify that she had moral principles in mind. Indeed, her complete sentence reads as follows: “Morality differs in every society and is a convenient term for socially approved habits” (Benedict 1934, emphasis added... (shrink)

In this paper, I criticize an influential understanding of naturalization according to which work on traditional problems in the philosophy of law should be replaced with sociological or psychological explanations of how judges decide cases. W.V. Quine famously proposed the “naturalization of epistemology.” Quine argued that we should replace certain traditional philosophical inquiries into the justification of our beliefs with empirical psychological inquiry into how we actually form beliefs. In a prominent series of papers and a forthcoming book, Brian Leiter (...) has raised the intriguing idea that Quine’s naturalization of epistemology is a useful model for philosophy of law. I examine Quine’s naturalization of epistemology and Leiter’s suggested parallel. I argue that the parallel does not hold up. I show that, granting Leiter’s substantive assumption that the law is indeterminate, there is no philosophical confusion or overreaching in the legal case that is parallel to the philosophical overreaching of foundationalism in epistemology. Moreover, if we take seriously Leiter’s analogy between, on the one hand, the justification of belief in scientific theories and, on the other, the justification of decisions in legal cases, the result is almost the opposite of what Leiter suggests. The closest parallel in the legal case to Quine’s position would be the rejection of the philosophical positions that lead to the indeterminacy thesis. Finally, the conclusion that law is indeterminate could not establish the bankruptcy of philosophical investigation into the relation between the grounds of law and the content of the law. After all, the argument for that conclusion depends on a philosophical account of the relation between the grounds of law and the content of law. The argument therefore presupposes that that relation is an appropriate subject for philosophical inquiry. (shrink)

In recent years, after various scandals, the role of auditors has been called into question, even casting doubt on whether their reports reliably reflect the true financial situation of the auditee, especially when this situation is not good. Normative changes in the way auditors have to rate certain questions provide a good opportunity to study this problem. These changes have acquired great relevance among the factors involved in studying audit quality. Thus, the present study analyzed the effect of the (...) normative change that took place in Spain in December 2010, related to opinions modified for going-concern uncertainties. Until that date, the auditor’s uncertainty about the company’s going-concern status led to a qualified opinion. However, under the new regulation, it became an opinion that included an explanatory paragraph stating the reasons for concern, which was considered less serious. In all, 152 small- and medium-sized enterprises that had begun bankruptcy proceedings were studied. Expert systems were used for their analysis, based on classification trees assembled through boosting and bagging. In addition, the logistic regression was used as baseline to compare previous methods. The main result obtained was that a change in the norm that catalogs the going-concern issue as less serious made auditors more likely to report this situation, thus questioning the audit quality. (shrink)

In recent years, consumer debt and the bankruptcy filing rate have received substantial public and media attention in the United States. That attention pales in comparison with widespread concerns and media reporting about health. Yet, both sets of discussions may be relevant to individuals and families facing a combination of health problems and financial problems. In a recent study, nearly half of the sample of individual bankruptcy filers reported they also were dealing with illness, injury, or substantial medical (...) debt.Whether somethmg other than coincidence explains this correlation is worthy of consideration for those who study health. For some debtors, debt problems may be health-care finance issues; income interruption or financial obligations stemming from health ailments may contribute to financial downfall?The opposite relationship, however, not only is possible, but potentially more pervasive. (shrink)

In recent years, consumer debt and the bankruptcy filing rate have received substantial public and media attention in the United States. That attention pales in comparison with widespread concerns and media reporting about health. Yet, both sets of discussions may be relevant to individuals and families facing a combination of health problems and financial problems. In a recent study, nearly half of the sample of individual bankruptcy filers reported they also were dealing with illness, injury, or substantial medical (...) debt.Whether somethmg other than coincidence explains this correlation is worthy of consideration for those who study health. For some debtors, debt problems may be health-care finance issues; income interruption or financial obligations stemming from health ailments may contribute to financial downfall?The opposite relationship, however, not only is possible, but potentially more pervasive. (shrink)

This paper reviews the current and future implications of the recent farm financial problems of Missouri for the rural and state economy. To provide a backdrop against which the current and future financial situation may be assessed, the paper first looks at the farm income trends of the state for the period 1964–1985. Although the level has dropped drastically since 1982, the study found that net income had increased significantly for most of the study period.However, the trend in farm debt (...) shows that between 1974 and 1982, total farm debt of Missouri farmers almost tripled. In fact, the farm financial situation in the state deteriorated faster than did farm financial situations in the nation. As a result, Missouri was the leader in the number of farm bankruptcies in the nation in 1985.The paper shows that, since the full-time family farms make up over seventy (70%) percent of the state's total farm, the greater financial problems, resulting in farm losses, occurred in these groups of farms, which are the source of the economic and social health of rural Missouri. It then indicates the serious effects that this wave of farm failures, which amounts to a depopulation of farms and farm families, has on the social and economic structure of rural communities, cheap but reliable food supply system, and competition within the farm sector.To keep the farm sector competitive and for the family farm to survive, the paper identifies the need for innovative policies (and suggests some), and for the cooperation and coordination of efforts among different agencies and organizations in the country. (shrink)

We confront the philosophical literature on fair division problems with axiomatic and game-theoretic work in economics. Firstly, we show that the proportionality method advocated in Curtis is not implied by a general principle of fairness, and that the proportional rule cannot be explicated axiomatically from that very principle. Secondly, we suggest that Broome’s notion of claims is too restrictive and that game-theoretic approaches can rectify this shortcoming. More generally, we argue that axiomatic and game-theoretic work in economics is an indispensable (...) ingredient of any theorizing about fair division problems and allocative justice. (shrink)

This paper focuses on some ethical issues of companies operating in the field of competitive sports including in particular: limited liability vis-à-vis creditors of the companies that discontinued their activities, but were not subject to liquidation, nor bankruptcy petition has been filed; hampered recognisability of individual companies due to frequent changing of their names and names of teams participating in the tournaments; legal and financial status, rights and duties of contestants of these companies are underdefined; company identity is violated (...) due to the pursuing of merger and acquisition strategy. It was decided that the above issues exemplify broader problems between labour and capital in the contemporary enterprise. Addressing of the above issues is a tough and complicated process, and sometimes simply impossible in the situation where sports have been recognised as equal sphere of business activities and where basic rules of market economy are respected also with reference to this sphere of life. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Philosophy and Literature 26.2 (2002) 312-333 [Access article in PDF] Consilient Literary Interpretation Marcus Nordlund I THIS IS AN EXCITING TIME in the history of human self-knowledge. Like the two souls in Plato's Symposium, the life sciences and the human sciences are slowly coming to terms with their painful divorce and are increasingly on speaking terms. Thanks to important developments across a broad range of academic disciplines from biology (...) and neuroscience to anthropology and psychology, we are starting to glean the possibility of a new conceptual integration that may have important consequences for our understanding of human nature. After hundreds of years of virtuoso variations on the theme of philosophical and scientific dualism, we have come some way towards bridging the gap between mind and matter, biology and culture, science and the arts.From the perspective of literary studies, two recent developments have been especially valuable. The previous decade saw a growing recognition among social scientists of the explanatory force of evolutionary theory, and of the ultimate bankruptcy of the nature-nurture opposition that forces biology and culture into different compartments. Since the social sciences have always supplied literary studies with food for thought, it would be strange if such developments did not reflect on literature, too. Equally important has been the increasing impatience among scholars in the humanities with the radical skepticism, antiscientism, and dogmatic agnosticism that turns both science and literature into mere self-validating narratives and sees no significant difference between descriptive and normative statements. Together, these theoretical shifts have slowly begun to pave the way for a new dialogue between those who study biology, psychology, and cultural artifacts like literature. Since the mid-1990s, a number of literary [End Page 312] scholars have taken the first steps towards merging evolutionary and cultural explanation in the study of literature. 1One striking defense of such a conceptual integration between science and literature was delivered a few years ago in Edward O. Wilson's Consilience. 2 According to Wilson, there is "only one way to unite the great branches of learning and end the culture wars. It is to view the boundary between the scientific and literary cultures not as a territorial line but as a broad and mostly unexplored terrain awaiting cooperative entry from both sides" (p. 138). While he concedes that the two cultures can and should be characterized by "radically different goals and methods," he also stresses that interpretation provides a "logical channel of consilient explanation between science and the arts" (p. 234).While we have good reason to be optimistic about the potential of this joint endeavor, it is nevertheless fraught with massive problems. The current track record in interdisciplinary literary studies is uneven, to say the least. Strange confusions about the nature and status of theory abound, and these often take the shape of spontaneous raids into foreign conceptual frameworks that are bound to baffle the practitioners of the host discipline. As Richard Levin importantly points out, 3 there are numerous reasons why current interdisciplinary literary theories tend to become self-validating. There are no negative tests; critics tend to choose theories on the basis of ideological preferences rather than the criterion of truth; and there is a widespread assumption that theories can simply be transformed willfully whenever they do not meet the requirements of the interpreter.Many of the problems Levin points to can, I think, be remedied by something as trivial as a change in attitude within the discipline of literature itself. For example, something has obviously gone seriously wrong when the automatic spouting of political ad hominem arguments and genetic fallacies has become second nature to so many critics. But there are other and more fundamental problems that seem intrinsic to the whole question of interdisciplinarity. One of these, according to Wilson, is that as we move forward in the hierarchy of sciences, from physics to biology to literature, we encounter a rapidly accelerating complexity: "It is far easier to go backward through the branching corridors than to go forward.... Biology is almost unimaginably more complex than physics, and the arts equivalently more complex than... (shrink)