An Introduction to the Field of Forensic Economics
This chapter reviews the major issues regarding the calculation of economic damages in the context of civil litigation. We explain how economic experts provide a variety of services to the legal profession beyond calculation of economic losses. The process by which the expert arrives at an opinion of loss is not complicated but requires careful consideration of various facts and assumptions that touch upon every aspect of the expert’s work. The chapter emphasizes that the forensic economist creates an alternative universe of what would have occurred absent the injury or incident, but one grounded on known facts and economic and statistical trends. In its review of the key issues faced by economic experts, the chapter also notes a number of unresolved or disputed issues.
KeywordsEconomic Damage Annual Earning Federal Court Expert Testimony State Court
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