The Timing of Out-of-Court Settlements Revisited: Theory and Cross- Sectional Evidence from Texas since 1988

摘要: Legal institutions play an important role in affecting delay settlement. But little research has investigated the institutional causes of delay. The empirical literature is ambiguous regarding impact trial-court on settlement I analyze timing bargaining and using a cross-section insurance claims Texas over 20-year span. discuss dynamic model pretrial negotiation to illustrate how changes legal systems might affect duration Comparative statics results are then corroborated with estimates hazard function adjusted account for heterogeneity time dependence suggested by theory. Statistical tests consistent theoretic prediction that trial courts expedites out-of-court also find alternative dispute resolution, process designed save transaction costs, reduces rapidity Prejudgement interest, law introduced reduce delay, actually greater have implications efficiency judicial system reform efforts aiming