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Product Liability, Research and Development, and Innovation

dc.contributor.authorViscusi, W. Kip
dc.contributor.authorMoore, Michael J., 1953-
dc.identifier.citation101 Journal of Political Economy 161 (1993)en_US
dc.description.abstractProduct liability ideally should promote efficient levels of product safety, but misdirected liability efforts may depress beneficial innovations. This paper examines these competing effects of liability costs on product R & D intensity and new product introductions by manufacturing firms. At low to moderate levels of expected liability costs, there is a positive effect of liability costs on product innovation. At very high levels of liability costs, the effect is negative. At the sample mean, liability costs increase R & D intensity by 15 percent. The greater linkage of these effects to product R & D rather than process R & D is consistent with the increased prominence of the design defect doctrine.en_US
dc.format.extent1 PDF (25 pages)en_US
dc.publisherThe Journal of Political Economyen_US
dc.subject.lcshProducts liability -- Economic aspectsen_US
dc.titleProduct Liability, Research and Development, and Innovationen_US

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