Measuring the Impacts of Non-Uniform Product Liability Laws on the Cost of U.S.Goods. (Research Summary)

摘要

The study focuses on two issues concerning the growing burden of productliability: (1) the effects of not having uniform product liability laws across states; and (2) whether the effects of product liability laws are more adverse for small firms than for large firms. It examines the evolution of the current state of product liability laws in the United States. An empirical model that measures the effects of the costs to firms as a result of product liability laws (liability costs, insurance costs, and total costs) was developed. The model predicts that variability in the law unambiguously increases firms' costs, but that firm size has ambiguous effects on firms' costs. A section on research methods and study design examined various methods for empirically testing the model, as well as the problems that might be encountered when measuring the variables. Existing data bases were examined for possible use as a primary data source for testing the empirical model.