Losers and losers: Some demographics of medical malpractice tort reforms
Purchase on Springer.com
$39.95 / €34.95 / £29.95*
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.
Our research examines how recent reforms have affected a key aspect of patients’ implicit insurance present in medical malpractice torts. Specifically, we estimate how non-economic damages caps affected pre-trial settlement speed and settlement amounts. Maximum entropy (most likely) quantile regressions emphasize that the post-reform settlement effects most informative for policy evaluation differ greatly from OLS (mean) estimates and clarify the conclusion emerging. In particular, the effect of the tort reform here can best be thought of as a 25% tax on the asset value of settlements that exempts settlements involving infants. The social welfare effects of tort reform are less clear than the asset reduction effects due to likely health state dependent utility.
- Abraham, K. S. (2001). The trouble with negligence. Vanderbilt Law Review, 54(3), 1187–1224.
- American Medical Association. (2003). Summary of Texas HB 4. Advocacy Resource Center.
- Andersen, S., Harrison, G. W., Lau, M. I., & Rutström, E. E. (2008). Eliciting risk and time preferences. Econometrica, 76(3), 583–618. CrossRef
- Armstrong, R. D., Frome, E. L., & Kung, D. S. (1979). Algorithm 79–01: A revised simplex algorithm for the absolute curve fitting problem. Communications in Statistics, Simulation and Computation, 8, 175–190.
- Avraham, R. (2007). An empirical study of the impact of tort reforms on medical malpractice settlement payments. The Journal of Legal Studies, 36(S2), S183–S229. CrossRef
- Bera, A. K., Galvao Jr., A. F. Montes-Rojas, G. V., & Park, S. Y. (2010). Which quantile is the most informative? Maximum likelihood, maximum entropy and quantile regression. University of Illinois Working Paper.
- Calabresi, G. (1961). Some thoughts on risk distribution and the law of torts. Yale Law Journal, 70(4), 499–553. CrossRef
- Cox, D. R. (1972). Regression models and life-tables (with discussion). Journal of the Royal Statistical Society, Series B, 34, 187–220.
- Crawford, V. P. (1982). Compulsory arbitration, arbitral risk and negotiated settlements: A case study in bargaining under imperfect information. The Review of Economic Studies, 49(1), 69–82. CrossRef
- Danzon, P. M. (1985). Medical malpractice. Cambridge: Harvard University Press.
- Danzon, P. M., Pauly, M. V., & Kington, R. S. (1990). The effects of malpractice litigation on physicians’ fees and incomes. American Economic Review Papers and Proceedings, 80, 122–127.
- Donohue, J. J., & Ho, D. E. (2007). The impact of damage caps on malpractice claims: Randomization inferences with difference-in-differences. Journal of Empirical Legal Studies, 4(1), 69–102. CrossRef
- Friedson, A. I. (2012). Medical malpractice damage caps and the price of medical procedures. Unpublished Manuscript.
- Golan, A. (2006). Information and entropy econometrics—a review and synthesis. Foundations and Trends in Econometrics, 2(1–2).
- Halek, M., & Eisenhauer, J. G. (2001). Demography of risk aversion. The Journal of Risk and Insurance, 68(1), 1–24. CrossRef
- Hersch, J., O’Connell, J., & Viscusi, W. K. (2007). An empirical assessment of early offer reform for medical malpractice. The Journal of Legal Studies, 36(S2), S231–S256. CrossRef
- Kessler, D. P. (2011). Evaluating the medical malpractice system and options for reform. Journal of Economic Perspectives, 25(2), 93–110. CrossRef
- Kniesner, T. J., Viscusi, W. K., & Ziliak, J. P. (2010). Policy relevant heterogeneity in the value of a statistical life: New evidence from panel data quantile regressions. Journal of Risk and Uncertainty, 40(1), 15–32. CrossRef
- Lakdawalla, D. N., & Seabury, S. A. (2009). The welfare effects of medical malpractice liability. National Bureau of Economic Research Working Paper 15383.
- Lin, D. Y., & Wei, L. J. (1989). The robust inference for the Cox proportional hazards model. Journal of the American Statistical Association, 84, 1074–1078. CrossRef
- Mello, M. M., Chandra, A., Gawande, A. A., & Studdert, D. M. (2010). National costs of the medical liability system. Health Affairs, 29(9), 1569–1577. CrossRef
- Shavell, S. (1978). Theoretical issues in medical malpractice. In S. Rottenberg (Ed.), The economics of medical malpractice. Washington, DC: American Enterprise Institute for Public Policy Research.
- Sloan, F. A., & Chepke, L. M. (2008). Medical malpractice. Cambridge: The MIT Press.
- Viscusi, W. K. (1988). Product liability litigation with risk aversion. The Journal of Legal Studies, 17(1), 101–121. CrossRef
- Viscusi, W. K., & Born, P. H. (2005). Damages caps, insurability, and the performance of medical malpractice insurance. Journal of Risk and Uncertainty, 72(1), 23–43.
- Viscusi, W. K., & Evans, W. N. (1990). Utility functions that depend on health status: Estimates and economic implications. American Economic Review, 80(3), 353–374.
- Zeckhauser, R., & Nichols, A. L. (1978). Lessons from the economics of safety. In S. Rottenberg (Ed.), The economics of medical malpractice. Washington, DC: American Enterprise Institute for Public Policy Research.
- Losers and losers: Some demographics of medical malpractice tort reforms
Journal of Risk and Uncertainty
Volume 45, Issue 2 , pp 115-133
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Medical malpractice
- Tort reform
- Texas closed claims
- Damage caps
- Quantile regression
- Maximum entropy
- Industry Sectors
- Author Affiliations
- 1. Department of Economics, University of Colorado Denver, Denver, CO, 80217, USA
- 2. Center for Policy Research and Department of Economics, Syracuse University, Syracuse, NY, 13244-1020, USA
- 3. Department of Economics, Claremont Graduate University, Claremont, CA, 91711, USA
- 4. IZA, Bonn, Germany
- 5. Maxwell School of Syracuse University, Syracuse, NY, 13244-1020, USA