Book chapter
Liability and Large-Scale, Long-Term Hazards
Economics and Liability for Environmental Problems, pp.427-448
Routledge, 1
2002
DOI: 10.4324/9781315188133-22
Abstract
This chapter analyzes the application of liability to large-scale, long-term hazards. It presents an empirical regression analysis of small-firm entry into the US economy between 1967 and 1980, the period in which liability laws were changing. The chapter argues that the attractiveness of liability is somewhat superficial because the injury-based nature of the system leads to unique enforcement problems. It discusses how latent hazards differ from other hazards and then shows how these differences create an incentive for firms to spin off hazardous activities to minimize the exposure of assets to liability claims. The chapter also shows how the change in liability rules of the early 1970s created incentives for such divestiture during that period. It examines how changing liability rules are linked to substantial changes in the rate of entry of small corporations in risky sectors of the economy, suggests that divestiture may be a significant problem.
Details
- Title: Subtitle
- Liability and Large-Scale, Long-Term Hazards
- Creators
- Al H. Ringleb - Clemson UniversitySteven N. Wiggins - Texas A&M University
- Contributors
- Kathleen Segerson (Editor)
- Resource Type
- Book chapter
- Publication Details
- Economics and Liability for Environmental Problems, pp.427-448
- Edition
- 1
- Publisher
- Routledge
- DOI
- 10.4324/9781315188133-22
- Language
- English
- Date published
- 2002
- Academic Unit
- Management and Entrepreneurship ; Interdepartmental Progs
- Record Identifier
- 9984380622602771
Metrics
18 Record Views