In-Kind Transfers and the Law of Torts

Journal of Legal Studies, Vol. 47, No. 1, 2018

35 Pages Posted: 21 Jun 2019

See all articles by Assaf Jacob

Assaf Jacob

The Interdisciplinary Center Radziner School of Law

Alon Klement

Buchman Faculty of Law, Tel Aviv University

Yuval Procaccia

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law

Date Written: May 29, 2018

Abstract

The state and charitable institutions provide in-kind services for distributive purposes. Such services generally benefit recipients but in particular instances may also cause them harm. We discuss the optimal tort regime that should apply when such harm occurs. We show that the optimal level of care applicable to such services is lower than if the same services are provided by ordinary injurers in the general market. We further demonstrate that the social optimum can be induced by a lenient gross-negligence standard, whereas the standard regimes of ordinary negligence and strict liability both lead to inefficient outcomes. These conclusions are robust to variations in the distribution of recipients’ valuations of the service and to possible agency problems in the state or charity.

Suggested Citation

Jacob, Assaf M. and Klement, Alon and Procaccia, Yuval, In-Kind Transfers and the Law of Torts (May 29, 2018). Journal of Legal Studies, Vol. 47, No. 1, 2018, Available at SSRN: https://ssrn.com/abstract=3395931

Assaf M. Jacob (Contact Author)

The Interdisciplinary Center Radziner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel
972-9-9527280 (Phone)
972-9-9568605 (Fax)

Alon Klement

Buchman Faculty of Law, Tel Aviv University ( email )

Tel Aviv
Israel

Yuval Procaccia

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel

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