AN ECONOMIC-ANALYSIS OF LEAD PAINT LAWS

In this paper we develop a theoretical framework for determining wheth er laws designed to reduce lead paint risk are consistent with efficie ncy. We do this in the context of bdh owner-occupied and rental housin g, and under different informational scenarios depending on who has kn owledge about the risk. Our results suggest that efficient lead paint laws would impose on property owners and landlords a duty to notify bu yers and tenants about known risks but would not impose on them a duty to inspect for or abate the risk. Our review of the existing law show s that common law standards are largely consistent with efficiency, bu t statutory law is not.