Statutes of Limitations for Accident Cases: Theory and Evidence
Research in Law and Economics, Vol. 19, 1999
Posted: 21 Feb 1999
The statute of limiations for accident cases puts an upper bound on the length of time following an accident that a victim can file suit. From a theoretical perspective, the optimal statute length balances the reduction in deterrence from a limit on suits against the savings in litigation and error costs. This paper formalizes the theoretical analysis of statutes of limitations and derives comparative statics which form the basis for an empirical test using cross-state variation in statute lengths. The results of the empirical analysis provide general support for the theory.
Note: This is a description of the article and is not the actual abstract.
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