, injunctions or other forms of property rules work better than compensation for damage or liability rules. The equivalences of the …

When parties can bargain with each other in an externality situation, it is frequently argued that liability rules are … preferable to property rules. The case for liability rules is thought to be strongest when the parties behave strategically, when … are not available. It is shown here that liability rules are not generally preferable to property rules in these …

We study whether banks are riskier if managers have less liability. We focus on New England between 1867 and 1880 and … consider the introduction of marital property laws that limited liability for newly wedded bankers. We find that banks with … wives from relatively wealthy families. We find no evidence that limiting liability increased firm investment at the county …

Limited liability is a defining feature of the modern corporation, but it was not always so. By the early 1850s about … one-half of all states imposed double liability on bank shareholders. This paper shows that double liability was adopted … as deposits increased relative to banknotes and in conjunction with free banking; that double liability was associated …