liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to …. Shareholder liability, mandatory liability insurance and punitive damages are also discussed …

harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great … importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … help to explain the observed predominance of liability over taxation, except in the area of pollution. The following …

Taxation and liability are compared here as means of controlling harmful externalities. It is emphasized that liability … liability does not require the state to determine expected harm - it requires only that injurers pay for harm that occurs …. However, taxation enjoys an advantage over liability: incentives under liability are diluted to the degree that injurers might …

This article studies how liability for environmentally harmful discharges affects the incentives of firms to engage in …

We develop a model where products liability trials provide information to consumers who are not parties to the …

liability rules on incentives to reduce accident risks. Then consideration of accident law is broadened (chapter 5) to reflect … the effect of liability rules on compensation of victims and the allocation of risk. In this regard a central issue is the … roles of victims' insurance and of liability insurance, and how they alter the incentives inherent in liability rules …

in the financial sector of the U.S. economy. The analysis focuses on contingent liability of bank owners for losses … incurred by their firms and how the elimination of this liability influenced leverage and lending by commercial banks. Using a … new panel data set, we find contingent liability reduced risk taking. In states with contingent liability, banks used less …