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

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 per...

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Publicado en:Contemporary Economic Policy Vol. 31; no. 1; pp. 110 - 126
Autores principales: MICELI, THOMAS J., STONE, MICHAEL P.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2013
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE DETERMINANTS OF STATE-LEVEL CAPS ON PUNITIVE DAMAGES: THEORY AND EVIDENCE.
      aug:
        au:
          MICELI, THOMAS J.
          STONE, MICHAEL P.
        affil:
          Miceli: Professor, Department of Economics, University of Connecticut, Storrs, CT. Phone (860) 486‐5810, Fax (860) 486‐4463, E‐mail.
          Stone: Visiting Assistant Professor, Department of Economics, Quinnipiac University, Hamden, CT. Phone (203) 582‐3941, Fax (203) 582‐8664, E‐mail
      su:
        Economic models
        Empirical research
        Legal services
        Ideology
        Exemplary damages
        Proportional hazards models
        Legal costs
      sug:
        subj:
          Economic models
          Empirical research
          Legal services
          Ideology
          All Other Legal Services
          Exemplary damages
          Proportional hazards models
          Legal costs
      ab: 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)
      pubtype: Academic Journal
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      src: R
    language: English
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