Forensic economists in wrongful death cases are often asked to calculate the present value of household services a decedent otherwise would have provided. In this paper, we calculate the amount of time mothers allocate to provide household services on average by the age of the youngest child and by the number of children using 2003-2013 American Time Use Survey (ATUS) data. We separately examine household production and time caring and helping others. Our results show that mothers with younger children and more children generally allocate more time for household services. However, while maternal caring and helping time decreases with the age of the youngest child, maternal household production increases with the age of the youngest child. In contrast to other published sources, the information we provide will allow economists to adjust for the number of children, and to better adjust for the age of the youngest household child, when calculating the present value of lost household production in wrongful death cases involving deceased mothers.Abstract
Schap, Baumann and Guest (Journal of Forensic Economics December 2014) report the time-series properties of wage net discount rates for the period 1981.01-2012.12, formulated on the basis of contemporaneously observed wage growth rates and various discount rates (determined by yields on U.S. Treasury notes of differing maturities). Gerald D. Martin (Determining Economic Damages, various editions) has noted the relatively rapid response of interest rates to economic stimuli compared with that of wages, which, being somewhat institutionally driven, respond with a lag. Of course, Martin was not the first to observe or mention these phenomena, but he does relate the phenomena specifically to the suitability of forensic economic application of wage net discount rates as typically derived (i.e., using contemporaneously observed wage growth rates and discount rates). The present study takes account of wage growth rates influenced by possible institutional factors by lagging the time frame of their observation relative to discount rates when the two are combined to form what we term “staggered” wage net discount rates. The staggered net rates constructed for the post-1980 era are then examined for stationarity and magnitude. The choice of lag structure for the staggering is empirically determined, but in conjunction with lag durations suggested by the macroeconomics literature on “sticky” wages. The reported results should be of interest to forensic economists that use wage net discount rates as well as critics of their use.Abstract
In January 2017, 565 e-mail invitations to complete an electronic survey were sent to NAFE (National Association of Forensic Economics) members, with libraries and attorneys excluded. The return rate was 33.1%. The survey covered many of the major topics included in earlier surveys, such as values of important economic variables (e.g., discount rates), trends in the practice of forensic economics (e.g., personal sources of earnings), and open-ended questions concerning ethics and reactions to the survey instrument. The survey also included several new or reworded questions, including a series of questions regarding members' education and level of professional activity designed to enhance their knowledge related to forensic practice.Abstract
It is well understood that the equity of an insolvent firm can trade for a positive price so long as there is some positive probability that the firm will become solvent at some future point. Currently, however, this insight exists in the case law in an informal sense, while its use in the financial economics literature is highly formalized and not tied to the legal solvency tests that experts, lawyers, and judges must apply in solvency litigation. A simple model of a debtor firm shows why a positive-equity value does not imply solvency under either of two widely-used legal solvency tests. This links a well-known financial economic insight to legal solvency tests. This is of practical importance as market evidence becomes more important in solvency litigation and as directors continue to face important questions of shifting fiduciary duties when the firm becomes insolvent.Abstract
This article presents a framework for computing damages in Iowa personal injury and wrongful death cases. The analysis is based on statute, common law, case law, jury instructions, and practice. Elements unique to personal injury and wrongful death cases are discussed, as well as elements common to both. Iowa proves to be somewhat unique in damages allowed in cases of wrongful death. The role and requirements for damage experts are examined as well.Abstract
When I first gazed at the cover of Forensic Economics: Assessing Personal Damages in Civil Litigation, my thought was, “Another book on forensic economics? Aren't my bookshelves already crammed with similar titles?” Well, yes, forensic economics does have a robust literature despite its relative youth as a sub-discipline beginning with Brookshire (1987). These monographs and edited volumes mainly fall into two broad categories: educating non-economists about what forensic economists do while also providing how-to advice for those wishing to enter the field (for example, Ward and Krueger, 1994; Martin, 1996; Ireland
The associates listed here have become NAFE members since the last issue of the JFE. Brad Abney 1749 Rosemary Drive Saratoga Springs, UT 84045 (801)899-5206 Ann Adair 2943 Howard Ave. Billings, MT 59102 (406)208-2302 Marcelle Adkins 2055 Valkaria Road Valkaria, FL 32950-4328 (321)984-1135 Charles Amodio 921 Mac Arthur Drive Ballston Spa, NY 12020 (518)288-2142 Adrian Austin University of West Georgia 1601 Maple Street Carrollton, GA 30118 (678)839-4773 Seth Blades PO Box 1179 Billings, MT 59103 (406)670-2314 Charles Bokesch 1320 Main St., Ste. 220 Columbia, SC 29201 (803)978-2800 Denis Boudreaux 307 Suffolk Ave.