The Impact of Damage Caps on Malpractice Claims: Randomization Inference with Difference‐in‐Differences

John Donohue and Daniel E. Ho

Journal of Empirical Legal Studies, 2007, vol. 4, issue 1, 69-102

Abstract: 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.

Date: 2007
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https://doi.org/10.1111/j.1740-1461.2007.00082.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:empleg:v:4:y:2007:i:1:p:69-102

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