Economics and Liability for Accidents

New Palgrave Dictionary of Economics, 2nd Edition, 2008

Harvard Law and Economics Discussion Paper No. 535

15 Pages Posted: 16 Dec 2005

See all articles by Steven Shavell

Steven Shavell

Harvard Law School; National Bureau of Economic Research (NBER)

Abstract

Legal liability for accidents determines the circumstances under which injurers must compensate injurers for harm. The effects of liability on incentives to reduce risk, on risk-bearing and insurance (both direct coverage for victims and liability coverage for injurers), and on administrative expenses are considered. Liability is also compared to other methods of controlling harmful activities, notably, to corrective taxation and regulation.

JEL Classification: D00, D6, D8, K00, K13, L5, H1, H8

Suggested Citation

Shavell, Steven, Economics and Liability for Accidents. New Palgrave Dictionary of Economics, 2nd Edition, 2008; Harvard Law and Economics Discussion Paper No. 535. Available at SSRN: https://ssrn.com/abstract=870565

Steven Shavell (Contact Author)

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States
617-495-3668 (Phone)
617-496-2256 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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