EMPIRICAL STUDIES OF JUDICIAL SYSTEMS AROUND THE GLOBE, Institutum Jurisprudentiae, Academia Sinica, 2009
20 Pages Posted: 14 Feb 2009 Last revised: 22 Apr 2012
Date Written: February 13, 2009
A number of states have passed caps on non-economic and punitive damage awards in civil cases. The conventional wisdom is that the passage of these caps is driven by "out-of-control" jury awards that need to be reigned in. However, it could be the case that voters harboring anti-litigation, pro-tort reform sentiments are more likely to support the passage of caps even in the absence of an upsurge in awards. To examine the effect of jury awards on the passage of caps, we estimate semi-parametric hazard models of cap passage using data from the Jury Verdict Research Reporter.
Keywords: punitive damages, caps, damage caps, jury awards
JEL Classification: C14, C41, K13, K41
Suggested Citation: Suggested Citation
Klick, Jonathan and Sharkey, Catherine M., What Drives the Passage of Damage Caps? (February 13, 2009). EMPIRICAL STUDIES OF JUDICIAL SYSTEMS AROUND THE GLOBE, Institutum Jurisprudentiae, Academia Sinica, 2009; NYU Law and Economics Research Paper No. 09-08; U of Penn, Inst for Law & Econ Research Paper No. 09-09. Available at SSRN: https://ssrn.com/abstract=1342535