Environmental Policy Based on Strict Liability: Implications of Uncertainty and Bankruptcy
构建企业层面模型，分析破产和财富不确定性如何影响企业在严格责任规则下的安全投入，发现大企业不一定比小企业更少从事高风险活动。
A firm-level model is developed to analyze the impacts of bankruptcy and uncertain firm wealth on incentives for safety under a strict liability rule. Future damages and wealth are uncertain, and a firm's income earning activities that possibly create damages are incorporated into the model. This analysis shows that firms do not always undertake more of a risky activity than is socially desirable. For the extremely hazardous industry case, larger firms always undertake less of a risky activity than smaller firms. For the cyclical industry case, larger firms do not always conduct less of a risky activity than smaller firms.