We compare the performance of liability rules for managing environmental disasters when third parties are harmed and cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm’s investment is unobservable to authorities. Externality and asymmetric information call for public intervention to define rules aimed at increasing prevention. We determine ...

We develop a model of repeated microcredit lending to study how group size affects optimal group-lending contracts with joint liability. In the setting being studied, a benevolent lender provides microcredit to a group of borrowers to invest in projects. The outcome of each risky project is not observable by the lender; therefore, if some of the borrowers default on their loan repayments, the l...

This Note argues that the optional inclusion of the development risks defense in Member State legislation undermines the Products Liability Directive by impeding harmonization of products liability laws in the Community. Part I sets forth the background and content of the Products Liability Directive. Part II discusses the implementation of the Products Liability Directive in Member State legis...

This article focuses on a specific aspect of liability insurance that arises out of the latent nature of certain insured events. In particular, it is concerned with the fact that in the interval between the original tort and the claim for damages the standard of care applied by the courts may change. This is the problem of retroactive liability. The article begins by briefly reviewing the legal...

This study analyzes the total deductibles and coinsurance Medicare beneficiaries accrued in 1980. The study shows that Part B services accounted for 70 percent of all liability and Part A for 30 percent. Only 21 percent of enrollees exceeded $270 in liability from Part A and Part B combined. In 1980, if every enrollee had paid a surcharge of about $70, all liability over $270 could have been ca...

Many communities are concerned about the reuse of potentially contaminated land ("brownfields") and believe that environmental liability is a hindrance to redevelopment. However, with land price adjustments, liability might not impede the reuse of this land. Existing literature has found price reductions in response to liability, but few studies have looked for an effect on vacancies. This pape...

the problem of compensating victims of traffic accidents is certainly one of the most important problems of a civil liability system. on the other hand, liability insurance is the main financial safeguard for the payment of the compensation of these victims. the old iranian law in this regard was passed on 1968. it had some merits and some inconveniences. it has been replaced by the new law of ...