The Significant Association between Punitive and Compensatory Damages in Blockbuster Cases: A Methodological Primer
Posted: 11 Jun 2007
This article assesses the relation between punitive and compensatory damages in a data set, gathered by Hersch and Viscusi (H-V), consisting of all known punitive damages awards in excess of $100 million from 1985 through 2003. It shows that a strong, statistically significant relation exists between punitive and compensatory awards, a relation that replicates similar findings in nearly all other analyses of punitive and compensatory damages. H-V's claim that no significant relation exists between punitive and compensatory awards in these data appears to be an artifact of questionable regression methodology.
Keywords: punitive damages, regression
JEL Classification: C10, K00, K40, K41
Suggested Citation: Suggested Citation