TY  - JOUR
AU  - Born,Patricia
AU  - Viscusi,W. Kip
AU  - Baker,Tom
TI  - The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12086
PY  - 2006
Y2  - March 2006
UR  - http://www.nber.org/papers/w12086
L1  - http://www.nber.org/papers/w12086.pdf
N1  - Author contact info:
Patricia Born

W. Kip Viscusi
Vanderbilt Law School
131 21st Avenue South
Nashville, TN 37203-1181
Tel: 615/343-7715
E-Mail: kip.viscusi@vanderbilt.edu

Tom Baker
AB  - Whereas the literature evaluating the effect of tort reforms has focused on reported incurred losses, this paper examines the long run effects using a comprehensive sample by state of individual firms writing medical malpractice insurance from 1984-2003. The long run effects of reforms are greater than insurers' expected effects, as five year developed losses and ten year developed losses are below the initially reported incurred losses for those years following reform measures. The quantile regressions show the greatest effects of joint and several liability limits, noneconomic damages caps, and punitive damages reforms for the firms that are at the high end of the loss distribution. These quantile regression results show stronger, more concentrated effects of the reforms than do the OLS and fixed effects estimates for the entire sample.
ER  -