A Cross-National Study of Government Social Insurance as an Alternative to Tort Liability Compensation

18 Pages Posted: 5 May 2009

See all articles by Dana A. Kerr

Dana A. Kerr

University of Southern Maine; St. Mary's University of San Antonio

Yu-Luen Ma

Illinois State University - Katie Insurance School

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance

Abstract

Litigation rates in the United States have long been considered out of proportion with the remainder of the world, leading to a good deal of economic research trying to understand the causes. Much of that literature has focused on lawyer compensation rules and availability of general damage awards. Another possible reason for differences in national litigation rates is the relative generosity of government social programs. Using a sample of 24 countries over a 12-year period, we test the relationship between the size of government social program payments and liability costs as measured by liability insurance premiums, and find a strong negative relationship, controlling for income, accident rates, and a variety of other factors.

Suggested Citation

Kerr, Dana A. and Ma, Yu-Luen and Schmit, Joan T., A Cross-National Study of Government Social Insurance as an Alternative to Tort Liability Compensation. Journal of Risk and Insurance, Vol. 76, Issue 2, pp. 367-384, June 2009. Available at SSRN: https://ssrn.com/abstract=1399107 or http://dx.doi.org/10.1111/j.1539-6975.2009.01303.x

Dana A. Kerr (Contact Author)

University of Southern Maine ( email )

P.O. Box 9300
Portland, ME 04104-9300
United States

St. Mary's University of San Antonio ( email )

One Camino Santa Maria
San Antonio, TX 78228
United States

Yu-Luen Ma

Illinois State University - Katie Insurance School ( email )

Normal, IL 61790
United States

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance ( email )

Madison, WI
United States
608-262-4240 (Phone)

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