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Effect of Liability Limitations On the Level of Care in the Public Sector: the Case of Highway Maintenance

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  • Suzanne Heller Clain

    (Villanova University)

Abstract

This article investigates the effects of government liability limits on the maintenance of interstate highways. It is found that the quality of highway maintenance varies from state to state in a manner that is related to the degree and nature of government liability for roadway conditions in each state. On the one hand, states that waive sovereign immunity and do not expressly prohibit punitive damages in judgments against the state tend to have roads of higher quality. However, states that waive sovereign immunity and do not specify a maximum dollar amount to limit liability tend to have roads of lower quality.

Suggested Citation

  • Suzanne Heller Clain, 1994. "Effect of Liability Limitations On the Level of Care in the Public Sector: the Case of Highway Maintenance," Public Finance Review, , vol. 22(4), pages 483-497, October.
    • Handle: RePEc:sae:pubfin:v:22:y:1994:i:4:p:483-497
    DOI: 10.1177/109114219402200405
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    References listed on IDEAS

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    1. Danzon, Patricia, 1984. "The Frequency and Severity of Medical Malpractice Claims," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 115-148, April.
    2. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
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