Working Paper: NBER ID: w10754
Authors: Steven Shavell
Abstract: The appeals process -- whereby litigants can have decisions of adjudicators reviewed by a higher authority -- is a general feature of formal legal systems (and of many private decisionmaking procedures). It leads to the making of better decisions, because it constitutes a threat to adjudicators whose decisions would deviate too much from socially desirable ones. Further, it yields this benefit without absorbing resources to the extent that adjudicators can anticipate when appeals would occur and would thus make decisions to forestall the actual occurrence of appeals.
Keywords: appeals process; adjudicator incentives; social welfare
JEL Codes: D8; K41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| The appeals process (K41) | better decision-making by adjudicators (K41) |
| Subsidies (H20) | appeals process (K41) |
| The appeals process (K41) | favorable adjudicator decisions (K41) |
| Subsidies (H20) | favorable adjudicator decisions (K41) |
| The appeals process (K41) | socially desirable outcomes (D91) |
| Subsidies (H20) | socially optimal outcomes (D61) |
| The appeals process is superior to random monitoring (C90) | compliance with socially optimal decisions (D70) |