Damage Caps and Civil Litigation: An Empirical Study of Medical Malpractice Litigation in the South
- 1 May 2001
- journal article
- research article
- Published by Oxford University Press (OUP) in American Law and Economics Review
- Vol. 3 (2) , 199-227
- https://doi.org/10.1093/aler/3.2.199
Abstract
This article looks at the effect that damage caps have on plaintiffs' recovery in medical malpractice litigation, using a unique data set of litigation in the South, from 1987 to 1999. During this time, Alabama underwent both the implementation and nullification of damage‐cap laws; neighboring states did not undergo any significant legal changes. The product of a difference‐in‐difference approach, the results reveal that the average relative recovery by Alabama plaintiffs decreased by roughly $20,000 after the Alabama legislature enacted damage caps and increased by roughly double that amount after the Alabama Supreme Court ruled them unconstitutional.Keywords
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