Premium
The Impact of Damage Caps on Malpractice Claims: Randomization Inference with Difference‐in‐Differences
Author(s) -
Donohue John J.,
Ho Daniel E.
Publication year - 2007
Publication title -
journal of empirical legal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 24
eISSN - 1740-1461
pISSN - 1740-1453
DOI - 10.1111/j.1740-1461.2007.00082.x
Subject(s) - malpractice , nonparametric statistics , inference , randomization , estimator , econometrics , actuarial science , sensitivity (control systems) , medical malpractice , covariance , statistics , economics , computer science , medicine , mathematics , clinical trial , artificial intelligence , political science , engineering , law , electronic engineering
We use differences‐in‐differences (DID) to assess the impact of damage caps on medical malpractice claims for states adopting caps between 1991–2004. We find that conventional DID estimators exhibit acute model sensitivity. As a solution, we offer (nonparametric) covariance‐adjusted randomization inference, which incorporates information about cap adoption more directly and reduces model sensitivity. We find no evidence that caps affect the number of malpractice claims against physicians.