Costs and Benefits of the Tort System If Viewed as a Compensation System

by Patricia Munch Danzon

Download eBook for Free

FormatFile SizeNotes
PDF file 3.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Compares the costs of operating the tort liability system for four major branches of tort law: product liability, automobile liability, workers' compensation, and medical malpractice. Liability premium costs are compared to the relevant industry revenue and the estimated cost of injuries. The allocation of the premium dollar among claimants, claimant and defense litigation costs, and insurance overhead is estimated. The paper is not intended as an overall evaluation of the tort system since it excludes such items as any reduction in injuries attributable to the deterrent effect of liability for negligence, and other costs not reflected in insurance premiums.

This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.