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The Effect of Electoral Institutions on Tort Awards

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Author Info
Eric Helland
Alexander Tabarrok

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Abstract

We argue that partisan elected judges have an incentive to redistribute wealth from out-of-state defendants (nonvoters) to in-state plaintiffs (voters). We first test the hypothesis by using cross-state data. We find a significant partisan effect after controlling for differences in injuries, state incomes, poverty levels, selection effects, and other factors. One difference that appears difficult to control for is that each state has its own tort law. In cases involving citizens of different states, federal judges decide disputes by using state law. Using these diversity-of-citizenship cases, we conclude that differences in awards are caused by differences in electoral systems, not by differences in state law. Copyright 2002, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal American Law and Economics Review.

Volume (Year): 4 (2002)
Issue (Month): 2 ()
Pages: 341-370
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Handle: RePEc:oup:amlawe:v:4:y:2002:i:2:p:341-370

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Helland, Eric & Tabarrok, Alexander T, 2000. "Runaway Judges? Selection Effects and the Jury," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(2), pages 306-33, October.
  2. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November. [Downloadable!] (restricted)
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Hanssen, F Andrew, 1999. "The Effect of Judicial Institutions on Uncertainty and the Rate of Litigation: The Election versus Appointment of State Judges," Journal of Legal Studies, University of Chicago Press, vol. 28(1), pages 205-32, January.
  5. Boyes, William J. & Hoffman, Dennis L. & Low, Stuart A., 1989. "An econometric analysis of the bank credit scoring problem," Journal of Econometrics, Elsevier, vol. 40(1), pages 3-14, January. [Downloadable!] (restricted)
  6. Maloney, Michael T & McCormick, Robert E & Tollison, Robert D, 1984. "Economic Regulation, Competitive Governments, and Specialized Resources," Journal of Law & Economics, University of Chicago Press, vol. 27(2), pages 329-38, October.
  7. Eric Helland & Alexander Taberrok, . "Runaway Judges? Selection Effects and the Jury," Claremont Colleges Working Papers 2000-10, Claremont Colleges. [Downloadable!]
  8. Kornhauser, Lewis A & Revesz, Richard L, 1994. "Multidefendant Settlements: The Impact of Joint and Several Liability," Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 41-76, January.
  9. Cooter, Robert D & Rubinfeld, Daniel L, 1989. "Economic Analysis of Legal Disputes and Their Resolution," Journal of Economic Literature, American Economic Association, vol. 27(3), pages 1067-97, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eric Helland & Alexander Tabarrok, . "Race, Poverty, and American Tort Awards: Evidence from Three Datasets," Claremont Colleges Working Papers 2002-29, Claremont Colleges. [Downloadable!]
    Other versions:
  2. Makowsky, Michael & Thomas, Stratmann, 2008. "More Tickets, Fewer Accidents: How Cash-Strapped Towns Make for Safer Roads," MPRA Paper 14360, University Library of Munich, Germany. [Downloadable!]
    Other versions:
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