Effect of Liability Limitations On the Level of Care in the Public Sector: the Case of Highway Maintenance

Suzanne Clain

Public Finance Review, 1994, vol. 22, issue 4, 483-497

Abstract: This article investigates the effects of government liability limits on the maintenance of interstate highways. It is found that the quality of highway maintenance varies from state to state in a manner that is related to the degree and nature of government liability for roadway conditions in each state. On the one hand, states that waive sovereign immunity and do not expressly prohibit punitive damages in judgments against the state tend to have roads of higher quality. However, states that waive sovereign immunity and do not specify a maximum dollar amount to limit liability tend to have roads of lower quality.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:22:y:1994:i:4:p:483-497

DOI: 10.1177/109114219402200405

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