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A comparison of two alternative methods for determining loss of future earnings following personal injuryí

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Author Info
Lewis, Richard (Cardiff Law School)
Robert McNabb (Cardiff Business School)
Helen Robinson
Victoria Wass

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Abstract

The law provides that any person injured through the fault of another can claim monetary compensation in the form of damages. Restitutio in integrum defines the objective and measure of damages. Damages in respect of loss of future earnings comprise the product of an estimated annual loss and an estimated number of years purchase. Estimates are made by means of intuition and precedent with little reference to labour economics. Damages calculated under an alternative methodology incorporating age-earnings profiles and conditional employment rates are compared with damages awarded in 100 adjudicated cases to reveal systematic and substantial under-compensation under the court method.

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File URL: http://repec.org/res2002/Lewis.pdf
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Publisher Info
Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 127.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:127

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Web page: http://www.res.org.uk/society/annualconf.asp
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This page was last updated on 2009-11-25.


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