The economic impacts of the tobacco settlement.

Recent litigation against the major tobacco companies culminated in a master settlement agreement (MSA) under which the participating companies agreed to compensate most states for Medicaid expenses. Here the terms of the settlement are outlined and its economic implications analyzed using data from Massachusetts. The financial compensation to Massachusetts (and other states) under the MSA is substantial. However, this compensation is dwarfed by the value of the health impacts induced by the settlement. Specifically, Medicaid spending will fall, but only by a modest amount. More importantly, the value of health benefits ($65 billion through 2025 in 1999 dollars) from increased longevity is an order of magnitude greater than any other impacts or payments. The net efficiency implications of the settlement turn mainly on a comparison of the value of these health benefits relative to a valuation of the foregone pleasure of smoking. To the extent that the value of the health benefits is not offset by the value of the pleasure foregone, the economic impacts of the MSA will include a share of these health benefits.     

Tort, Insurance and Incoherence

Some commentators have doubted whether, as is generally believed, liability insurance has had a significant expansionary effect on the law of tort. This article contends that the common assumption is, indeed, correct, and the crucial influence of insurance is clearly seen in the recent cases of Vowles v Evans and Gwilliam v West Herts NHS Trust . Once this has been acknowledged, the consequent radical incoherence in the basis of tort law needs to be confronted. The argument here is that only through faithful adherence to principles of individual responsibility and corrective justice, inherent as these are within the structure of tort law, can we hope to preserve coherence in the law of tort.     

Negotiating Russian Federalism: A Simulation for Comparative Politics

While the use of simulations in the international relations classroom has proliferated over the past decade, this pedagogical tool has been largely neglected in the comparative politics classroom. Simulations in comparative politics can be a useful component in teaching students about the diversity within foreign countries and the dynamic of domestic policymaking. We describe here an informative and easy-to-run simulation on Russian federalism which can be integrated into courses on Russian politics or easily adapted for use in other courses, especially those focusing on countries in which center-regional relations are an important dimension. The simulation is based on the Russian Federation Council, the upper house of the Russian Federal Assembly, and is a great way to illustrate through experiential learning the quid pro quo of Russian federalism. We provide detailed information on English-language sources that both instructors and students can use during the simulation, along with an Appendix and a Website that provides everything instructors need to run the simulation in their own classes.