Taxes and the Present Value Assessment of Economic Losses in Personal Injury Litigation
Southern Illinois University - Carbondale Economics Department Discussion Paper No. 2013-01
22 Pages Posted: 10 Jan 2013
Date Written: January 1, 2013
Anderson and Barber (2010) provide a recent discussion of tax effects on economic damages, for forensic economists and similar experts who supply the courts with opinions on economic damages. Anderson and Barbers’ paper fills a void in the forensic economics literature, by offering a formal theory of how tax considerations can impact economic damages. In the present work I point out a limitation of this theory - via a counter-example, and discuss conditions under which the theory seems to hold approximately.
Keywords: income stream, present value, tax, personal injury, wrongful death
JEL Classification: K13, K34
Suggested Citation: Suggested Citation