Balancing the risk of harm with productivity in the mercurial firm: economic theory and applications to Australian policy

To speak of making 'the firm' liable for its accidents subsumes much complexity. Firm structure adaptsto avoid future penalties. Such strategies suggest we should sanction responsible individuals. But society has been very reluctant to pierce the corporate veil: it is often difficult to single-out indiciduals. and the policy can reduce productivity. Using economic theory, this project aims to determine penalty structures that balance productivity and the risk of harm. Results will be used to improve Australain policy with the significant aim of saving resources and reducing the risk of death or injury. Academic and policy papers will be produced for publlication in leading international and local journals.