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Similarly, officials' wishes for investors to do more in energy generation by setting up nuclear-power stations, encouraged by a new law, will go slowly as investors grumble at being landed with big liability risks for decades to come.Paved with good intentionsStill, more money, bright minds and resources than ever will be dedicated to fixing infrastructure in 2011.
Uncompensated costs arise from litigation or liability risks (for example, Sec 60 InsO and Brandes/Schoppmeyer, in: Kirchhof et al. (2014), to Sec. 60, Note 89 91).
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Even one offensive e-mail message circulated around the office by a single employee can pose a liability risk for a company.
But critics counter that such legislation creates a serious liability risk for companies.
Uncompensated costs typically decrease in (theta) because litigation and liability risks become less likely for high (theta).
An article in the New England Journal of Medicine last month pointed to a potential for malpractice liability risks because more information might be available on electronic records that might have gone unnoticed on a paper chart.
Businesses administer their own injury benefit programs, reaping big cost savings in exchange for exposing themselves to heightened liability risks.
The results of our paper imply that stronger liability regimes may be counter-productive for overall welfare and the creditors' payoff if higher liability risks are not compensated by non-monetary benefits.
▪ Concerns (Real and Perceived) about Liability Risks.
For example, liability risk arises because many decisions with a highly uncertain future outcome must be made during the continuation.
This efficiency loss can be explained by the risk premium the manager demands ex-ante as compensation for the liability risk associated with tax evasion.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com