University of Wisconsin
Department of Economics
Economics 236: Health Economics and Policy
Korinna K. Hansen
Group Assignment 6
Due Date: Wednesday, Nov. 15, 2006
Reading Assignment: Phelps, Chapter 13
Problem Assignment:
Here are some critical questions for our class discussion regarding Medical Malpractice.
For each one of the following four questions you should be able to communicate to an
audience all important relevant information in a well-organized and concise way. Make
sure that you are ready to present enough detail.
1). Medical Malpractice: What is it? Exactly how does it relate to the law? (Which law?)
2). Describe the Negligence Law and explain its economic logic. What is the “Hand
Rule”?
3). Defensive Medicine: What is it? Why does it exist? Is it a good or bad thing to
have? Explain why.
4). What is Medical Malpractice Insurance? How is it typically structured? Is it a good
or bad thing to have? Explain why.