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The Effect of Electoral Institutions on Tort Awards

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  • Eric Helland
  • Alexander Tabarrok

Abstract

We argue that partisan elected judges have an incentive to redistribute wealth from out-of-state defendants (nonvoters) to in-state plaintiffs (voters). We first test the hypothesis by using cross-state data. We find a significant partisan effect after controlling for differences in injuries, state incomes, poverty levels, selection effects, and other factors. One difference that appears difficult to control for is that each state has its own tort law. In cases involving citizens of different states, federal judges decide disputes by using state law. Using these diversity-of-citizenship cases, we conclude that differences in awards are caused by differences in electoral systems, not by differences in state law. Copyright 2002, Oxford University Press.

Suggested Citation

  • Eric Helland & Alexander Tabarrok, 2002. "The Effect of Electoral Institutions on Tort Awards," American Law and Economics Review, American Law and Economics Association, vol. 4(2), pages 341-370.
    • Handle: RePEc:oup:amlawe:v:4:y:2002:i:2:p:341-370
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    Cited by:

    1. Ash, Elliott & MacLeod, W. Bentley, 2021. "Reducing partisanship in judicial elections can improve judge quality: Evidence from U.S. state supreme courts," Journal of Public Economics, Elsevier, vol. 201(C).
    2. Murphy, Ryan H., 2020. "The Quality of Legal Systems and Property Rights by State: A Ranking and Their Implications for Economic Freedom," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(1), April.
    3. Peter Grajzl & Valentina Dimitrova-Grajzl & Katarina Zajc, 2016. "Inside post-socialist courts: the determinants of adjudicatory outcomes in Slovenian commercial disputes," European Journal of Law and Economics, Springer, vol. 41(1), pages 85-115, February.
    4. Michael D. Makowsky & Thomas Stratmann, 2011. "More Tickets, Fewer Accidents: How Cash-Strapped Towns Make for Safer Roads," Journal of Law and Economics, University of Chicago Press, vol. 54(4), pages 863-888.
    5. Bonica, Adam & Sen, Maya, 2017. "The Politics of Selecting the Bench from the Bar: The Legal Profession and Partisan Incentives to Introduce Ideology into Judicial Selection," Working Paper Series rwp17-048, Harvard University, John F. Kennedy School of Government.
    6. Eric Helland & Alexander Tabarrok, 2003. "Race, Poverty, and American Tort Awards: Evidence from Three Data Sets," The Journal of Legal Studies, University of Chicago Press, vol. 32(1), pages 27-58, January.
    7. Michael S. Kang & Joanna M. Shepherd, 2015. "Partisanship in State Supreme Courts: The Empirical Relationship between Party Campaign Contributions and Judicial Decision Making," The Journal of Legal Studies, University of Chicago Press, vol. 44(S1), pages 161-185.
    8. Makowsky, Michael & Sanders, Shane, 2013. "Political costs and fiscal benefits: The political economy of residential property value assessment under Proposition 212," Economics Letters, Elsevier, vol. 120(3), pages 359-363.
    9. Alma Cohen & Alon Klement & Zvika Neeman, 2015. "Judicial Decision Making: A Dynamic Reputation Approach," The Journal of Legal Studies, University of Chicago Press, vol. 44(S1), pages 133-159.
    10. Eric Helland & Jonathan Klick & Alexander Tabarrok, 2005. "Data Watch: Tort-uring the Data," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 207-220, Spring.

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