Damages

About: Damages is a research topic. Over the lifetime, 9365 publications have been published within this topic receiving 89750 citations. The topic is also known as: compensation award.

Welfare calculations in discrete choice models when anticipated and experienced attributes differ: A guide with examples

Abstract: The attributes that consumers anticipate or expect when choosing among alternatives (i.e., prior to consumption) often differ from the attributes that they actually experience when consuming their chosen alternative. This paper describes, and illustrates with several examples, the calculation of consumer surplus in this situation and the loss in consumer surplus due to the imperfect foreknowledge about attributes. The procedures are useful in many settings, such as the assessment of damages for false advertising and the analysis of informational policies.

On the economics of coastal adaptation solutions in an uncertain world

Abstract: The economics of adaptation to climate change relies heavily on comparisons of the benefits and costs of adaptation options that can range from changes in policy to implementing specific projects. Since these benefits are derived from damages avoided by any such adaptation, they are critically dependent on the specification of a baseline. The current exercise paper reinforces this point in an environment that superimposes stochastic coastal storm events on two alternative sea level rise scenarios from two different baselines: one assumes perfect economic efficiency of the sort that could be supported by the availability of actuarially fair insurance and a second in which fundamental market imperfections significantly impair society’s ability to spread risk. We show that the value of adaptation can be expressed in terms of differences in expected outcomes damages only if the effected community has access to efficient risk-spreading mechanisms or reflects risk neutrality in its decision-making structure. Otherwise, the appropriate metric for measuring the benefits of adaptation must be derived from certainty equivalents. In these cases, increases in decision-makers’ aversion to risk increase the economic value of adaptations that reduce expected damages and diminish the variance of their inter-annual variability. For engineering and other adaptations that involve significant up-front expense followed by ongoing operational cost, increases in decision-makers’ aversion increase the value of adaptation and therefore move the date of economically efficient implementation closer to the present.

The Hidden Victims of Tort Reform: Women, Children, and the Elderly

Abstract: I have conducted empirical research from several states on how juries in medical malpractice and other tort suits allocate their damage awards between economic loss damages and noneconomic loss damages. I then compared cases in which men are the victims and cases in which women are the victims. This research demonstrates that while overall men tend to recover greater total damages, juries consistently award women more in noneconomic loss damages than men, and that the noneconomic portion of women's total damage awards is significantly greater than the percentage of men's tort recoveries attributable to noneconomic damages. Consequently, any cap on noneconomic loss damages will deprive women of a much greater proportion and amount of a jury award than men. Noneconomic loss damage caps therefore amount to a form of discrimination against women and contribute to unequal access to justice or fair compensation for women.

Escalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental Regulations

Abstract: The U.S. Environmental Protection Agency uses a dynamic approach to enforcing air pollution regulations, with repeat offenders subject to high fines and designation as high priority violators (HPV). We estimate the value of dynamic enforcement by developing and estimating a dynamic model of a plant and regulator, where plants decide when to invest in pollution abatement technologies. We use a fixed grid approach to estimate random coefficient specifications. Investment, fines, and HPV designation are costly to most plants. Eliminating dynamic enforcement would raise pollution damages by 164% with constant fines or raise fines by 519% with constant pollution damages.