THE DETERMINANTS OF STATE-LEVEL CAPS ON PUNITIVE DAMAGES: THEORY AND EVIDENCE

被引：3
|
作者：
Miceli, Thomas J. [1 ]
Stone, Michael P. [1 ]
机构：
[1] Univ Connecticut, Dept Econ, Storrs, CT 06269 USA
来源：
CONTEMPORARY ECONOMIC POLICY | 2013年 / 31卷 / 01期
关键词：
TORT REFORM;
D O I：
10.1111/j.1465-7287.2011.00297.x
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Under the standard economic model of torts, punitive damages correct for imperfect detection. Incorporating litigation costs into the model provides a justification for punitive damage caps. At the optimum, caps balance deterrence against the cost of litigation. Empirical testing of the model is performed via Cox proportional and parametric hazard analyses, using a panel dataset from 1981 to 2007. The results reveal a positive relationship between legal services employment (a proxy for legal costs) and cap enactment, and a negative relationship between state gross state product (a proxy for damages) and cap enactment. Cap enactment is also influenced by political ideology. (JEL K13, K41, L51)
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页码：110 / 125
页数：16
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