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Evidence-free Policy: The Case of the National Injury Insurance Scheme

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  • Mark Harrison

Abstract

The Productivity Commission report 'Disability Care and Support' recommends tort liability be replaced by a compulsory, government-run, no-fault scheme. But theory and evidence indicate moving to a no-fault scheme will increase the accident rate. Even a move from non-risk-rated third-party insurance to non-risk-rated first-party insurance reduces incentives for care. A no-fault scheme is not superior to current policies; genuine reform will need to be informed by law and economics literature.

Suggested Citation

  • Mark Harrison, 2013. "Evidence-free Policy: The Case of the National Injury Insurance Scheme," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 20(1), pages 55-70.
    • Handle: RePEc:acb:agenda:v:20:y:2013:i:1:p:55-70
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    File URL: http://press-files.anu.edu.au/downloads/press/p247961/pdf/Evidence-free-Policy-The-Case-of-the-National-Injury-Insurance-Scheme-Mark-Harrison.pdf
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    References listed on IDEAS

    as
    1. Peter L. Swan, 1984. "The Economics of Law: Economic Imperialism in Negligence Law, No‐Fault Insurance, Occupational Licensing and Criminology?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 17(3), pages 92-108, November.
    2. Yu-Ping Liao & Michelle J. White, 2002. "No-Fault for Motor Vehicles: An Economic Analysis," American Law and Economics Review, American Law and Economics Association, vol. 4(2), pages 258-294.
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