| Description |
Beginning in 1974, the inconsistent application of both strict and negligent standards of products liability, drove firms from the marketplace, increased prices, and caused a critical shortage in the nation's vaccine stockpile. Using a law and economics model, this project traces the development of the crisis, illustrating the incentives faced by producers as well as consumers. I find that the inefficient incentives which existed were created by a failure to explicitly acknowledge vaccines as a public good. The project continues with an evaluation of the National Childhood Vaccine Injury Act of 1986, which removed the compensatory process from the tort system. I conclude that the Vaccine Act, while a dramatic improvement, still harbors two vestiges of inefficiency: 1) failing to completely shield manufacturers from strict liability actions, and; 2) incorrectly generating funds through an excise tax upon the sale of vaccines. |
