environment, the optimal liability regime is similar to the no-fault systems of Sweden and New Zealand where the doctor faces zero … liability. The reason is that the subsidy on preventive medicine is a better instrument to induce the optimal level of care than …

In this paper two main medical malpractice systems are discussed - tort liability system in the US and no-fault system … care costs. Tort liability system is a "social insurance of a market society" where patients are compensated when the …