US State Tort Liability Reform and Entrepreneurship

41 Pages Posted: 28 Sep 2018

See all articles by John A. Dove

John A. Dove

Troy University - Manuel H. Johnson Center for Political Economy

Laura Dove

Troy University

Date Written: September 2018

Abstract

Tort and civil liability reform has been a hotly debated issue across US states. This has spawned a large theoretical and empirical academic literature that evaluates the implications of such reform and the impact that it can have on various aspects of an economy. This study adds to that literature by considering how various tort reforms affect entrepreneurial activity across states. The study employs the Database of State Tort Law Reforms (6th Edition) and utilizes the Kauffman Index of Entrepreneurial Activity between 1996 and 2016, finding that liability reform is generally positively associated with increased entrepreneurial activity. These results are largely driven by reforms to joint and several liability, caps on noneconomic damages, collateral source reform, and contingency fee reform.

Keywords: Entrepreneurship, Tort Reform, Liability, Kauffman, Economic Growth

JEL Classification: D78, H73, K13

Suggested Citation

Dove, John A. and Dove, Laura, US State Tort Liability Reform and Entrepreneurship (September 2018). Available at SSRN: https://ssrn.com/abstract=3246929 or http://dx.doi.org/10.2139/ssrn.3246929

John A. Dove (Contact Author)

Troy University - Manuel H. Johnson Center for Political Economy ( email )

Bibb Graves Hall
Troy, AL 36082
United States

Laura Dove

Troy University ( email )

Troy, AL
United States

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