From July 2001 Supplement

Chapter 1. The Forensic Economist
§100	The Art and Science of Forensic Economics
§101	Economic Logic and Legal Requirements
§102	An Overview of Economic Services Available
§103	What You Should Know About Forensic Economics
§104	Effect of Economic Testimony on Awards
§105	Perspective of this Book
§110	What to Consider When Choosing an Expert
§111	Local v. Outsider
§112	Experienced v. Inexperienced
§113	Impartiality
§114	Contracts Between Lawyer and Economist
§114.1	Sample Agreement No. 1
§114.2	Sample Agreement No. 2
§114.3	Sample Agreement No. 3
§114.4	Sample Agreement No. 4
§114.5	Sample Agreement No. 5—Attorney General
§114.6	Sample Agreement No. 6
§115	Consulting v. Testifying Expert
§116	Economic Specialties
§117	The Economist as Facilitator
§120	Qualifying Your Expert
§121	Education
§121.1	Specific Fields of Study
§122	Publication Record
§123	Association Memberships
§124	Academic Rank
§125	Experience
§126	Communication Skills
§127	Knowledge of Computers
§130	How to Locate an Expert
§131	Listing of Economists
§140	What to Learn About your Expert Before Retaining Him
§141	The Cost
§141.1	Contingency Fee Testimony
§142	His Past Testimony
§143	Applicability of Experience
§144	His Personality
§145	Availability
§146	References
§147	Read Your Expert’s Publications Checklist: Choosing an Expert
§148	What the Expert Can Do for the Plaintiff
§149	What the Expert Can Do for the Defendant
§150	Qualifying Your Expert at Trial
Sample: Questions for Qualifying Your Expert at Trial
§160	Preparing the Expert for Trial
Form: Preparing for Trial
§170	Building a Profile Before the Expert Testifies
§171	Honest Differences Between Economists
§180	The Daubert Test

Chapter 2. Overview of Data Needed by the Economist
§200	In General
§210	Demographic Data
§211	Race, Sex, Date of Birth, Date of Incident, and Date of Trial
§212	Education
§213	Health History
§214	Occupational History
§215	Income History
§216	The Employed Plaintiff
§217	Household Services
§218	Family Composition
§219	Personal Consumption
§220	Medically Related Data
§221	Funeral, Burial, and Medical Expenses
§222	Attendant Care and Nursing Homes
§230	Life and Worklife Expectancy and Time to Trial
§240	Earnings Growth Rates and Interest Rates
§250	Occupational Earnings
§260	Statistical Data
§261	Tax Rates and Adjustments
§262	Obtaining Government Data
List: Government Agency Addresses
§263	Obtaining Union Data and Contracts
§270	The Economist’s Personal Library
List: Suggested Personal Library Holdings
§271	Forensic Economics Bibliographies
§272	Readings in Current Research
§273	Journal of Forensic Economics
§274	Journal of Legal Economics
§275	The Litigation Economics Digest
§276	The Earnings Analyst
§280	Checklists for Obtaining Data
Checklist: Information to be Provided by the Attorney
Checklist: Information to be Provided by the Economist
§281	Sample Questionnaires
Sample: Personal Injury Questionnaire
Sample: Wrongful Death Questionnaire
Sample: Wrongful Termination Questionnaire
Sample: Addendum: Legal Considerations
§290	The Proper Order: Plaintiff or Defendant? 

Chapter 3. Past and Future Earnings
§300	In General
§301	Historical Wage Changes
Table 1: Average Weekly Hours and Hourly Earnings
Table 1A: Wage Growth in Different Industries and Time Periods
§302	The Continental Soldier Fallacy
§303	Loss of Earnings or Earning Capacity
§304	Base Earnings
§310	Wage Differences Among Occupations
§311	The Causes of Wage Changes
Table 2: Changes in Consumer Price Indexes
Table 3: Productivity Trends
§312	How Occupations are Defined
§320	Demographic Factors and Earnings
§321	Education and Earnings
§321.1	Probabilities of Completing Various Levels of Schooling
§321.2	Earnings Changes for College Graduates
Table 4: Education and Earnings
Table 4A: Levels of Education
Table 4A.1 Educational Attainment
Table 4B: Average Yearly Salary Offers
Table 4C: Growth in Starting Salary Offers
Table 4D: Male v. Female Earnings
Table 4E	Male v. Female Earnings by State
Table 4F	Male v. Female Earnings by Education
§321.3	Impact of Education of Parents
§322	Sex and Earnings
§323	Race and Earnings
§324	Age and Earnings
Table 5: Household Data, Median Annual Earnings
§324.1	Earning Capacity of the Minor Plaintiff
§325	Geography and Earnings
Table 6:	Average Earnings by State
§325.1	Economic Research Institute
Table 6A: Position Description
Table 6B: Earnings in Base City
Table 6C: Earnings in Destination City
Table 6D: Relocation Comparisons
Table 6E: Salary and CPI Equivalents
Table 6F: Geographic Comparisons
§326	Farmworker Earnings
Table 7: Weeks of Farm Work Per Year
Table 7A: Farmworker Demographics
Table 7B: Farmworker Earnings
§330	Using Statistical Data
§331	Interpreting Indexes
Table 8: Consumer Price Index: Transportation and Medical Care
Table 9: Index of Prices for Farmers
§332	Using Union Contracts
Table 10: Union Contract Excerpt
§333	Using Cohort Tables
Sample: Cohort Table
Sample: Revised Cohort Table
§334	The OASDHI Earnings Forecast to the Year 2075
Table 11: Summary of Earnings Changes in Percent: 1960-2075
Table 12: Summary of Earnings Changes in Dollars
§334.1	The FAIRMODEL Forecast
Table 12A: Prices and Wages
Table 12B: Money and Interest Rates
§335	Inflation Forecasts
Table 13: The Livingston Survey
Table 14: The Federal Reserve Forecast
§336	The Employment Cost Index (ECI)
Table 14A: Employment Cost Trends
Table 14B: 50 Years of Economic Trends
§336.1	Employment Cost Index - State and Local Government Employees
Table 15: ECI Growth Rates – State and Local Government Employees
§337	Measuring 50 Years of Economic Change
§338	Additional Bureau of Labor Statistics Wage Studies
Table 16: Occupational Employment Statistics
Table 16A: National Compensation Survey
§340	Plaintiff’s Employment Status
§341	The Unemployed Plaintiff
§342	The Retired Plaintiff
§343	The Minor Plaintiff
§350	Other Types of Losses
§351	Lost Business Profits
§352	The Wrongfully Terminated Plaintiff
§353	The Wrongful Birth
Table 17: Cost of Raising Child Husband-Wife Families
Table 17A: Cost of Raising Child Single-Parent Families
Table 18: Cost of College
§353.1	Valuing Children
§353.2	Wrongful Birth Pro Rata Cost Approach
§353.3	Wrongful Birth Marginal Consumption Approach
§354	Special Problems in Earnings Data
§355	Losses in Foreign Currency
§356	Children Supporting Parents
§360	Perspective of this Chapter

Chapter 4. Determining the Value of Employer Paid Benefits
§400	In General
§410	Where to Find Benefit Information
§411	Information from the Employee Client
§412	Information from the Employer
§413	Information from Unions
§414	Information from the Department of Labor
Table 19: Employer Costs
Table 20: Employment Cost Index for Civilian Workers
§415	Information from the U.S. Chamber of Commerce
Table 21: Total Benefits as Percent of Payroll
Table 22: Types of Benefits, All Employees
§420	Specific Benefits
§421	Paid Vacations and Sick Leave Pay
§422	Life Insurance
§423	Health Insurance
§423.1	Health Care Reform
§423.2	How to Obtain Health Insurance Premium Quotes
Table 22A: Health Insurance Premium Quotes
§424	Pensions and Retirement Plans
§425	The Company Car
§426	Expense Accounts and other Miscellaneous Perks
§427	Estimating the Loss of Social Security Retirement Benefits
Table 22B: Estimates of Social Security Losses for Married Workers
§430	Summarizing Lost Benefits
List: Summary of Benefits
§440	How to Determine the Loss

Chapter 5. Adjusting for Personal Consumption and Support Factors
§500	In General
§510	Defining Personal Consumption and Support Factors
§511	Family Lifetime Consumption Patterns
§512	The Cheit Study
List: The Cheit Study Values
§513	Government Studies
List: Government Study Values
§520	Combining the Various Studies
List: Average of the Various Studies
Table 22C: Support and Consumption Factors
§530	Support or Consumption Factors
§531	When to Make the Adjustment
§532	Use a Family Data Sheet
Sample: Family Data Sheet
Sample: Schedule of Personal Consumption Deductions
§533	Unusual Circumstances
Checklist: Personal Consumption and Support Factors
§534	Consumption for the Single Person
§535	Personal and Indivisible Consumption by Family Size and Income
Table 22D: Consumption by Household Members, by Number of Persons
in Household and Income Levels, Savings Excluded as
Consumption Item
Table 22E: Consumption by Household Members, by Number of Persons
in Household and Income Levels, Savings Included as
Consumption Item
Table 22F: Consumption by Household Members, by Number of Persons in
Household and Income Levels, Savings and Social Security/Pension Contributions Included as Consumption Items

Chapter 6. The Value of Household Services
§600	In General
§610	What Are Household Services?
§611	Measuring the Amount of Services Lost
§612	Ask About Unusual Services
§620	Studies of Hours and Values
List: Summary of the Studies
§621	How to Use the Hours per Week Studies
§622	The Dollar Value Study
Table 23: Dollar Values of Household Services
§630	Adjusting Household Service Values
§631	Years of Healthy Life
Table 24: The Difference Between Full Life and Healthy Life
§632	Self Consumption of Household Services
§633	Joint Family v. Individual Service Value
§640	[Reserved]
§650	An Alternative Measure of Household Service Value
§650.1	The Four General Approaches to Measuring Household Production
§650.2	Recent Studies on the Value of Household Services
§651	The Dollar Value of a Day
Table 24A: Hours per Week
Table 24B: Dollar Value per Day
§652	Hours of Household Work Based on Marital Status
Table 24C: Household Work by Marital Status

Chapter 7. Life and Worklife Expectancy
§700	In General
§710	Where to Locate Life Expectancy Tables
Table 25: Life Expectancy
Table 26: Mortality Tables
Table 26A: Period Life Tables for U.S. Social Security Area
Table 26B: Life Expectancy for Males by Education
Table 26C: Life Expectancy for Females by Education
§720	When to Use Life Expectancy
§730	Worklife Expectancy Tables
Table 27: Worklife Expectancy for Men by Schooling
Table 28: Worklife Expectancy for Women by Schooling
§731	Date of Trial
§740	Recent Worklife Model Innovations
§741	Years to Workforce Separation
Table 28A: Years to Worforce Separation: Male
Table 28B: Years to Worforce Separation: Female
§741.1	New Worklife Expectancy Table
Table 28C: Worklife Expectancies by Age, Sex, and Education
§741.2	Additional Worklife Expectancy Tables
Table 28D: Worklife Expectancies for Men
Table 28E: Worklife Expectancies for Women
Table 28F: Median Years to Workforce Separation for Men
Table 28G: Median Years to Workforce Separation for Women
§741.3	Worklife Tables Based on 1996 - 1998 Data
Table 28G.1: Male Worklife 1996-1998
Table 28G.2: Female Worklife 1996-1998
§742	The Lost Years: Compensating for Reduced Life Expectancy
§750	Information the Economist Will Need to Determine Worklife
List: Information Needed
§760	Railroad Employee’s Worklife Expectancy
§770	The Decline in Average Retirement Age
Table 28H: Average Retirement Age

Chapter 8. How to Include Income Tax in the Evaluation
§800	First There was Hall
§810	Next There was Liepelt
§820	Then Came Shaw
§830	Followed by Trevino
§840	When to Make Tax Adjustments
§850	Who Benefits from a Tax Adjustment?
§860	Who Really Won
§870	How to Make the Tax Adjustment
Table 29: Effective Tax Rates
§871	Municipal Bonds—An Alternative Solution to the Tax Problem
§880	The Tax Adjustment in Wrongful Terminations
§881	Taxes in District Court Awards

Chapter 9. Using Reports of Medical and Rehabilitation Experts
§900	In General
§901	The Medical Expert
§902	The Vocational Rehabilitation Expert
Sample: Report Extract
§902.1	Court of Appeal Opinion Excerpt
§903	The Life Care Planning Expert
Table 30: The Life Care Plan Cost Charts
Table 30A: Home Modification Costs
§904	Disability Ratings
§905	Earnings of Disabled Persons
§910	How the Economist Uses the Reports
Table 31: Summary of Losses
§920	The Medical Care Cost Index
Table 32: Indexes of Medical Care Costs
Table 33: Medical Care Cost Growth Rates
Table 33A: Year to Year Changes
§930	The Life Expectancy Quandary
§940	Useless Reports from Experts
§941	Misleading Rehabilitation Reports
§950	Sequencing Your Experts at Trial

Chapter 10. Calculating and Using Trends
§1000	Defining a Trend
§1010	Choosing a Time Period
§1020	The Two Constants: Amounts and Rates
§1030	A Comprehensive Example: The Minimum Wage
§1031	Plotting the Trend on Graph Paper
Table 34: Minimum Wage Trend, Linear Regression
Table 35: Minimum Wage Trend, Log Regression
§1032	The End Points Method
§1033	The Average Annual Change
§1034	The Semiaverage Method
§1035	The Geometric Mean
§1036	The Least Squares Method (Linear Regression)
Table 36: Minimum Wage Trend Calculations
§1037	The Least Squares Method (Logarithmic Regression)
§1038	Testing the Reliability of the Regressions
Table 37: Regression Reliability Tests and Results
§1040	Summary Comparison of the Methods for Finding the Trend
List: Comparative Trend Calculation Results
§1050	What to Do at the Deposition and at the Trial

Chapter 11. Interest Rates and Present Value
§1100	In General
§1110	What Determines an Interest Rate?
§1111	The Link Between Interest Rates and Earnings Growth Rates
§1112	Adjusting Interest Rates for Transaction Costs
§1113	Future Interest Rate Changes
§1120	Some Definitions You Need to Know
§1130	What to Consider When Choosing an Interest Rate
§1131	Simple Interest v. Compound Interest
§1132	The Changing Value of Money Over Time
§1133	The Five Time Value Variables
Diagram: The Time Line
§1134	Treasury Accord
§1140	Bringing Past Losses to the Present
§1141	How Trial Delays Change the Present Value
§1150	How Often do You Discount?
§1160	How Much Difference Does One Percent Make?
§1170	The Growing Use of Stripped Treasuries
§1171	TIPS (Treasury Inflation Protected Securities) and
TIIS (Treasury Inflation Indexed Securities)

Chapter 12. A Sampling of Methods to Calculate Losses
§1200	In General
§1201	The Alaska Method, or Total Offset
§1202	The Partial Offset Method
§1203	The Real Rates Method
§1204	The Nominal Rates Method.
§1210	A Simplified Calculation to Find Case Value
§1211	A Simplified Calculation to Find Delayed Payment Case Value
Sample: A Personal Injury Case
§1220	The Nominal Rates Method v. The Offset Method.
§1221	Weaknesses in Using Historical Interest Rates
§1230	The Mathematics of the Partial Offset
§1240	Periodic Payments Required in Medical Malpractice Cases
§1250	How to Make a Rough Estimate of Lost Earnings
Table 39: Runoff Interest Rates
§1251	Runoff Interest Rates
§1260	Net Discount Rate (NDR)
§1261	Total Offsets in Forensic Economics
Table 40: Comparison of Interest Rates
Table 41: NDR’s for Various Time Periods
Table 42: Interest Rates and the Medical Consumer Price Index
Table 43: NDR’s for Medical Care Costs
§1262	The Net Discount Rate Controversy
§1270	Worklife and LPE

Chapter 13. Putting It All Together
§1300	In General
§1310	The Preliminaries
§1311	Start with the Basics
§1311.1	Sex and Race
§1311.2	Education
§1311.3	Dates of Birth and Injury or Death
§1311.4	Life Expectancy
§1311.5	Worklife Expectancy
§1311.6	Trial Date
§1311.7	Occupational Data
§1311.8	Household Services
§1311.9	Family Status
§1311.10	Medical Expenses
§1311.11	Discount Rate
§1311.12	Income Tax
§1320	A Personal Injury Report
§1321	Summary of Losses
Sample: Summary of Losses
§1322	Basis for Evaluation
Sample: Basis for Evaluation
§1323	Calculations
Printouts: Calculation of Losses
§1324	Tax Adjustment Discussion
§1330	A Wrongful Death Report
§1331	Summary of Losses
Sample: Summary of Losses
§1332	Basis for Evaluation
Sample: Basis for Evaluation
Sample: Calculations of Past Losses
§1333	Calculations
Printout: Calculation of Past Losses
Printout: Calculation of Future Losses
§1340	A Wrongful Birth Report
§1341	Summary of Losses
Sample: Summary of Losses
§1342	Basis for Evaluation
Sample: Basis for Evaluation
§1343	Calculations
Sample: Calculation of Losses
§1344	Military Retirement Pay and Survivor Benefits
§1344.1	Military Retirement Pay Calculations
§1344.2	Military Retirement Pay Calculator
Sample 1: Retirement Pay – Major
Sample 2: Retirement Pay – Master Sergeant
§1350	A Final Note on Reports

Chapter 14. Tactics and Strategy
§1400	Do You Need a Forensic Economist?
§1401	Plaintiff
§1402	Defendant
§1410	Selecting the Right Expert for Your Case
§1411	Plaintiff
§1412	Defendant
§1420	Instructing the Expert
§1421	Plaintiff
§1142	Defendant
§1423	What You Should Not Tell Your Expert
§1430	The Written Report
§1431	Plaintiff
§1432	Defendant
§1433	Written Correspondence
§1434	Read Your Expert’s Writings
§1440	Who is Deposed First?
§1450	Prepare Your Expert for the Deposition
§1451	Conducting the Deposition
§1460	Preparing Your Expert for Trial
§1461	Qualifying Your Expert
§1462	General v. Specific Question on Direct
§1463	Protecting Your Expert’s Testimony
§1464	Rehabilitate Your Expert on Redirect
§1465	Difficult Issues on Cross-Examination
§1470	Some Final Comments
§1480	How to Depose and Cross-Examine Plaintiff’s Economist
§1481	Pretrial Preparation
§1482	Guide to Depositions
§1483	Guide to Cross-Examination
§1484	Conclusion

Chapter 15. Hedonic Damages—The Value of Human Life
§1500	In General
§1510	Perspective of the Chapter
§1520	Reports in the Public Media
§1521	The New York Times
§1522	The Wall Street Journal
§1523	Newsweek
§1524	Comment on Media Report
§1525	Books and Journals
§1526	Some Overlooked Studies of Hedonic Damages
§1530	A Sampling of the Cases
Sherrod v. Berry
McDougald v. Garber
§1531	Other Recent Cases
Nussbaum v. Gibstein
Leonard v. Parrish
Mather v. Griffin Hospital
Buoy v. ERA Helicopters, Inc.
§1532	Ayers v. Robinson—Is This the End of Hedonic Damages?
§1533	The California Position
§1540	Additional Commentary on Hedonic Damages
§1550	[Reserved]
§1560	Loss of Life Enjoyment—Economic Report
§1570	Proving Hedonic Damages When Expert Testimony is Not Allowed

Chapter 16. [Reserved]

Chapter 17. Structured Settlements
§1700	In General
§1701	History of Structured Settlements
§1702	The Future of Structured Settlements
§1710	Cases Suitable for Structured Settlements
§1720	The Various Forms of Structured Settlements
§1721	Period Certain
§1722	Period Certain with Life Contingency
§1723	Increasing Payments
§1724	Deferred Lump Sums
§1725	Combinations
§1726	Options
§1730	Examples of Structured Settlement Offers
§1731	Female—Age 26
§1732	Child
§1733	Age Rated
§1734	Differences in Age Ratings
§1740	Tax Advantages
§1741	Protecting the Interest of Minors
§1742	Blocked Account v. Structured Annuity
§1750	Locating and Using a Structured Settlement Annuitist
§1751	Who Can Sell Structured Annuities
§1752	How the Annuitist/Broker Works With the Economist
§1753	Assisting at the Settlement Conference
§1754	Know the Financial Strength of the Insurers
§1755	Present Value v. Annuity Premium
§1756	Structured Attorney Fees
§1760	Advantages to the Plaintiff
§1770	Advantages to the Defendant
§1780	Disclaimer

Chapter 18. The Internet and Computer Programs
§1800 In General
§1810 Internet Addresses
§1820 Commercial Software
§1821 PC-Economist Series
Sample: PC-Economist Evaluation
§1822 Personal Damages Specialist
Sample: Personal Damages Specialist Evaluation
§1830 Forensic Economic Associations
§1831 National Association of Forensic Economics (NAFE)
Sample: NAFE Home Page
§1832 American Academy of Finance and Economic Experts (AAEFE)
Sample: AAEFE Home Page
§1833 American Rehabilitation and Economics Association (AREA)
Sample: AREA Home Page