Duo Cum Faciunt Idem, Non Est Idem. Evidence from Austrian Pain and Suffering Verdicts
AbstractWe analyze the pricing of pain and suffering and, in particular, whether the corresponding compensations are affected by a court’s approach to value such damages. For this purpose, we use data on pain and suffering verdicts in Austria, where courts are generally free to choose between a per diem and a lump sum scheme to assess payments on damages for pain and suffering. We find significant higher payments under the lump sum regime, which are not vanishing even after controlling for individual- and injury-specific characteristics. Our evidence suggests that the observed difference between lump sum and per diem schemes mainly appears if the victims are female and exposed to multiple injuries and, to a lesser extent, to intensive past pain days.
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Bibliographic InfoPaper provided by University of Salzburg in its series Working Papers in Economics and Finance with number 2011-2.
Length: 23 pages
Date of creation: 17 Feb 2011
Date of revision:
Tort Law; Per Diem Pain and Suffering Damages; Lump Sum Pain and Suffering Damages;
Find related papers by JEL classification:
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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