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Damage Caps and the Labor Supply of Physicians: Evidence from the Third Reform Wave

Author

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  • Myungho Paik
  • Bernard Black
  • David A. Hyman

Abstract

Nine states adopted caps on non-economic damages during the third medical malpractice reform wave from 2002–05, joining twenty-two other states with caps on non-economic or total damages. We study the effects of these reforms on physician supply. Across a variety of difference-in-differences (DiD), triple differences, and synthetic control methods, in both state- and county-level regressions, we find, with tight confidence intervals, no evidence that cap adoption leads to an increase in total patient care physicians, or in specialties that face high liability risk (with a possible exception for plastic surgeons), or in rural physicians.

Suggested Citation

  • Myungho Paik & Bernard Black & David A. Hyman, 2016. "Damage Caps and the Labor Supply of Physicians: Evidence from the Third Reform Wave," American Law and Economics Review, Oxford University Press, vol. 18(2), pages 463-505.
  • Handle: RePEc:oup:amlawe:v:18:y:2016:i:2:p:463-505.
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    File URL: http://hdl.handle.net/10.1093/aler/ahw009
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    Cited by:

    1. Michael D. Frakes & Matthew B. Frank & Seth A. Seabury, 2017. "The Effect of Malpractice Law on Physician Supply: Evidence from Negligence-Standard Reforms," NBER Working Papers 23446, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    I11; I18; K23; K32;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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