| Abstract: | The Federal Tort Claims Act of 1946 put government on an equal footing in tort law with private individuals. It also provides a very broadly defined immunity for any public function of a discretionary nature. While economists argue that immunity does not minimize social costs, this analysis outlines a theoretically optimal mix of liability and immunity. Discretionary governmental policy must be immune as it establishes principles of government conduct. Tort liability then insures cost-minimizing policy execution. This theory of state behavior links a number of leading/controversial immunity cases that otherwise exhibit no consistent thought. |
