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Noneconomic Damage Caps and Medical Malpractice Claim Frequency: A Policy Endogeneity Approach

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  • Christine Piette Durrance

Abstract

Medical malpractice has received much attention in the media with highly publicized jury awards and reported consequences of excessive litigation. Health care and medical malpractice remain a prominent issue, especially in the current political climate. Policy endogeneity, however, plagues most analyses of various federal, state, or local policies. In this article, I analyze the effect of noneconomic damage caps on the frequency of positive payment medical malpractice claims, recognizing that these laws are likely endogenous. I construct a unique instrument using past and current values of state political composition and other factors. In contrast to previous literature, I find no evidence that caps on noneconomic damages are associated with a reduction in medical malpractice positive payment claim frequency. The Author 2009. Published by Oxford University Press on behalf of Yale University. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Christine Piette Durrance, 2010. "Noneconomic Damage Caps and Medical Malpractice Claim Frequency: A Policy Endogeneity Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 26(3), pages 569-591.
    • Handle: RePEc:oup:jleorg:v:26:y::i:3:p:569-591
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    File URL: http://hdl.handle.net/10.1093/jleo/ewp022
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    Cited by:

    1. Eric Cardella & Carl Kitchens, 2017. "The impact of award uncertainty on settlement negotiations," Experimental Economics, Springer;Economic Science Association, vol. 20(2), pages 333-367, June.
    2. Cotten, Stephen J. & Santore, Rudy, 2012. "Contingent fee caps, screening, and the quality of legal services," International Review of Law and Economics, Elsevier, vol. 32(3), pages 317-328.
    3. Robyn Meeks & Katharine R. E. Sims & Hope Thompson, 2019. "Waste Not: Can Household Biogas Deliver Sustainable Development?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 763-794, March.
    4. Antoci, Angelo & Fiori Maccioni, Alessandro & Russu, Paolo & Sacco, Pier Luigi, 2022. "Curing is caring? Liability reforms, defensive medicine and malpractice litigation in a post-pandemic world," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).

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