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Authors:George Tauchen
Affiliation:1. Department of Economics , Amherst College , Amherst , MA , 01002;2. School of Business Administration, University of Michigan , Ann Arbor , MI , 48109
Abstract:
Selection processes that are inherent in litigation complicate policy-oriented research of medical malpractice tort reforms. In regard to their deterrent impact, the range of potential inferences based on analyses of claim frequency is limited because plaintiffs only file a subset of potential claims. In regard to their impact on litigation costs, researchers often analyze data on claim disposition, but it is difficult to determine whether effects attributed to tort reforms reflect changes in litigant behavior or their influence on the selection of claims. In this article, we evaluate these problems and report results of our study of the effects of medical malpractice reforms on claim disposition.
Keywords:Law  Maximum likelihood estimation  Multivariate probit  Selection bias
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