“Quantifying Financial Reasoning in Court docket: Choose Financial Sophistication and Professional-business Orientation” (draft coming quickly)
Summary: By making use of computational linguistics instruments to the evaluation of US federal district courts’ selections from 1932 to 2016, this paper quantifies the rise of financial reasoning in courtroom instances, starting from securities regulation to antitrust legislation. I then relate judges’ degree of financial reasoning to their coaching. I discover that the numerous choose heterogeneity in financial sophistication may be defined by attendance at legislation colleges with a big presence of the legislation and economics school. Lastly, for all regulatory instances from 1970 to 2016 I hand code whether or not the choose dominated in favor of the enterprise or the federal government. I discover that choose financial sophistication is positively correlated with a better frequency of pro-business selections even after controlling for political ideology and a wealthy set of different choose covariates.