Trial Selection and Estimating Damages Equations

Abstract

Abstract: Many studies have employed regression analysis with data drawn from court opinions. For example, an analyst might use regression analysis to determine the factors that explain the size of damages awards or the factors that determine the probability that the plaintiff will prevail at trial or on appeal. However, the full potential of multiple regression analysis in legal research has not been realized, largely because of the sample selection problem. We propose a method for controlling for sample selection bias using data from court opinions.

Keywords: law and economics, empirical legal studies, damages equations estimations, sample selection bias

JEL Classification: K10, K13, C51