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  

Scott D. Gilbert

Southern Illinois University at Carbondale - Department of Economics

Date Written: January 1, 2013

Abstract

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

Gilbert, Scott D., Taxes and the Present Value Assessment of Economic Losses in Personal Injury Litigation (January 1, 2013). Southern Illinois University - Carbondale Economics Department Discussion Paper No. 2013-01. Available at SSRN: https://ssrn.com/abstract=2198581 or http://dx.doi.org/10.2139/ssrn.2198581

Scott Dale Gilbert (Contact Author)

Southern Illinois University at Carbondale - Department of Economics ( email )

MC-4515
Carbondale, IL 62901-4515
United States
(618) 453-5065 (Phone)
(618) 453-2717 (Fax)

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