{"title":"Are Mexican Net Discount Rates Stationary? An Application for Lost Earnings Damages Involving Undocumented Workers","authors":"Antonio Ávalos, R. Alley","doi":"10.5085/JFE-373R2.1","DOIUrl":"https://doi.org/10.5085/JFE-373R2.1","url":null,"abstract":"This paper provides empirical evidence on the behavior of various Mexican Net Discount Rates (NDRs) by examining the time series properties of several yields on Mexican government securities and annual wages for nine industrial sectors. Results indicate that NDRs are characterized as a stationary series around a shift in its mean. The forecast for the mean of the NDRs should be based on the period after the time of the shift, which took place in 1994. The discussion addresses relevant case law and the application of the NDR approach to the calculation of damages for Mexican undocumented workers as an effort to equip forensic economists with the tools to conduct such estimates.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"94 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131621820","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Real Earnings of Full-Time Workers by Education, Age Group and Sex, 1974–2012","authors":"Edward Foster","doi":"10.5085/0898-5510-25.2.221","DOIUrl":"https://doi.org/10.5085/0898-5510-25.2.221","url":null,"abstract":"This note rearranges the data from Census Bureau Personal Income (PINC) tables 32–35 showing earnings of full-time, year-round workers from 1974 to 2012 to display the 39-year time series for average real earnings by education, age group, and sex. Aggregated data show strong upward trends for all males and all females combined, for males and females with a bachelor's degree or more and for those with less than a bachelor's degree. However, all trends have flattened or become negative since 2000. Shifts in the composition of the work force over time mean that trends in aggregated earnings incorporate those shifts, so may not be useful for projecting earnings growth for any individual plaintiff of a specific age and educational background. The note addresses that problem in two ways: First it re-weights the aggregate statistics to remove some effects of shifts in composition of the workforce. Second it gives summary statistics for log-linear regressions of real earnings on time for all education-age-sex combinations for the period 1974–1999 and for 2000–2012. Growth for the latter period is negative for most of those combinations. Supplemental material for a Microsoft Excel workbook contains the underlying data and several figures and is accessible from the Journal of Forensic Economics website.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121810806","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Wage Net Discount Rates: 1981–2012","authors":"D. Schap, R. Baumann, Lauren Guest","doi":"10.5085/JFE-369R3.1","DOIUrl":"https://doi.org/10.5085/JFE-369R3.1","url":null,"abstract":"The study explores time series properties of three wage net discount rate series derived using interest rates based on (alternatively) 1-year, 6-month and 3-month Treasury securities coupled with wage growth rates, initially for the period from 1981:01 to 2012:06, then subsequently through 2012:12. Stationarity tests are run on the full series and various sub-series to identify any portion of the series on which reliable forecasting can be based. Initially no support is found for the total offset hypothesis based on the full-time series (but support is subsequently found for total offset when exploring various data sub-series). Positive findings include that the three trended wage net growth rate series for the entire period under study are stationary, implying that reliable short-term forecasting of wage net discount rates is possible based on each of the trended series. Short-run forecasts based on the trended series are presented for 2012:07–2012:12 and compared to actual data in the period. Finally, the three trended wage net discount rate series are re-examined for 1981:01–2012:12, with short-term forecasting equations presented. Various sub-series of WNDRs are then explored in hopes of finding one or more that may be stationary about a constant term. Additional testing identifies three sub-series all ending 2012:12 with varying start dates that have desirable stationarity properties. The sub-series starting 2007:11 is highly stationary, but peculiar, with an associated constant WNDR that is negative and statistically different from zero; and the two sub-series beginning 1990:12 and 1994:05 have stationary attributes, yet possess constant terms that are slightly positive but not statistically different from zero, thus providing modest support for the total offset method.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121862919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Personal Consumption by Family Type and Household Income","authors":"K. Krueger","doi":"10.5085/0898-5510-25.2.203","DOIUrl":"https://doi.org/10.5085/0898-5510-25.2.203","url":null,"abstract":"Using Consumer Expenditure Survey data, this paper presents a unified approach in estimating adult personal consumption across five family types: married wage earners living together by themselves, married wage earners living together with their minor children, married retirees living together by themselves, single wage earning parents living together with their minor children, and single wage earners living alone. In addition to advancing the literature with a unified analysis of family traits, this paper uses over 700 microdata expenditure classifications instead of the approximate 30 summary expenditure classifications which have been relied on in other personal consumption studies. Microdata expenditure classification reduces problems of allocating expenses among family members. The paper begins with an overview of the Consumer Expenditure Survey, the federal data source that is most appropriate for estimating personal consumption. Next presented are the allocation rules to separate personal from survivor and household expenditures. The data are then identified followed by empirical estimation.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134629803","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Updated History of the National Association of Forensic Economics: 2002–2014","authors":"J. Rodgers, M. Weinstein","doi":"10.5085/0898-5510-25.2.175","DOIUrl":"https://doi.org/10.5085/0898-5510-25.2.175","url":null,"abstract":"Abstract The National Association of Forensic Economics (NAFE) has approximately 650 members across the United States and in other countries. While the association has been an active group at the annual meetings of the Allied Social Science Association (ASSA) and at other regional meetings of economists, the growth of NAFE in terms of longevity and finances has allowed the organization to develop a more professional presence for its academic and practitioner members. This paper will update the original history of NAFE authored by Michael L. Brookshire in the Litigation Economics Review in 2003 which covered the period from NAFE's inception in 1986 through 2001.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"129 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115462148","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Strangways, Bruce L. Rubin, Michael T. Zugelder
{"title":"Using TIPS to Discount to Present Value","authors":"R. Strangways, Bruce L. Rubin, Michael T. Zugelder","doi":"10.5085/JFE.25.1.71","DOIUrl":"https://doi.org/10.5085/JFE.25.1.71","url":null,"abstract":"The practice of forensic economics has a long history of trying to identify the correct interest rate to use when valuing economic losses in personal injury and wrongful death cases. We trace the legal history as it relates to the appropriate interest rates and adjustments for inflation. We then discuss the use of Treasury Inflation Protected Securities, TIPS, and an analysis of the combined effect of realized inflation and taxes on the effective return. We come to the unexpected conclusion that the use of TIPS does not lend itself to a simple adjustment to the rate for taxes nor eliminate the need to consider expected inflation.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124970627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Total Worklife Expectancy","authors":"K. Krueger, Frank L. Slesnick","doi":"10.5085/JFE.25.1.51","DOIUrl":"https://doi.org/10.5085/JFE.25.1.51","url":null,"abstract":"This paper appends the standard Markov increment-decrement worklife expectancy model used in forensic economics to measure the years that people perform the non-market work of taking care of their homes or families. We find that adding non-market working years to the worklife model nearly equalizes men and women's estimated lifetime total working years. The paper begins with the gender-related problems of solely using labor force worklife tables as a tort compensation determinant. We then present demographic characteristics of persons that perform full-time, non-market work. A Markov life table model that incorporates two work activities (market and non-market work) is specified—we name the sum of market and non-market working years “total worklife expectancy.” Ending the paper are examples of using total worklife expectancy as a tort compensation estimator.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132154949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Comment on George DeMartino's “Professional Economic Ethics: The Posnerian and Naïve Perspectives”","authors":"Frank D. Tinari","doi":"10.5085/JFE.25.1.91","DOIUrl":"https://doi.org/10.5085/JFE.25.1.91","url":null,"abstract":"The DeMartino (2013) paper provides a provocative and informative review of the key aspects of the ethical problems faced by applied economists. The purpose of this Comment is not to challenge the contrasts drawn by the author between the two ethics perspectives. Rather, it is our intent to examine more closely the ethical issues that forensic economists may potentially encounter, as identified by the author. DeMartino's paper is rather ambiguous with respect to forensic economic ethics. On the one hand, the paper states that the pressures upon forensic economists are more powerful than those faced by other applied economists; yet, the paper identifies some reasons explaining why there are mechanisms that reduce such pressures.This Comment argues that the author has already identified the broad parameters that explain why ethical problems are less severe for practicing forensic economists. This Comment also expands upon the reasons for this more favorable situation. As a result, the author's conclusion that economics “today is a rogue profession” is excessively broad for two reasons: (1) the focus of the paper is on applied economics, not the entire economics profession, and (2) the phrase would more accurately be stated as: some but not all applied economics comprise a rogue profession.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"120 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114225035","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structural Growth in Labor Costs: Evidence from the Employment Cost Index","authors":"Gary R. Albrecht, K. Krueger","doi":"10.5085/JFE.25.1.17","DOIUrl":"https://doi.org/10.5085/JFE.25.1.17","url":null,"abstract":"Wage growth forecasting is a necessary part of forensic economics. In this paper, we present a time series methodology to test whether wage and compensation growth in the United States varies by industry and occupation. If growth varies, then the common use of “all-worker” net discount or wage growth rates would not be accurate for every forensic economic case. Using the Employment Cost Index, we find that total compensation, wage, and benefit growth in some, but not all, industries and occupations has been significantly different from that of the wage growth of all workers. That finding may concern the forensic economist who needs to construct a variety of net discount or wage growth rates. As an alternative to constructing multiple forecasts, this paper provides estimated industry and occupational specific differentials from the growth in all workers' wages.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133526102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Journal of Forensic Economics: Revisiting Its Perspective and Agenda for Research","authors":"J. O. Ward","doi":"10.5085/JFE.25.1.5","DOIUrl":"https://doi.org/10.5085/JFE.25.1.5","url":null,"abstract":"This issue of the Journal of Forensic Economics (JFE) begins the 25th volume of that publication. As the first Editor of the JFE and the co-author of the first paper published in that journal, “Forensic Economics: A Perspective and an Agenda for Research” I have been asked to offer comments on the role that the JFE has had in the development of the field of Forensic Economics over the past 25 years. This paper examines the evolution of the journal in terms of the focus of papers published by field of investigation and presents the results of a survey of subscribers on their views on the quality of the JFE, its strengths and its shortcomings. Finally, a new agenda for the JFE is offered that will discuss the primary problems the journal will likely face in the next 25 years and the areas of research to be addressed.","PeriodicalId":265321,"journal":{"name":"Journal of Forensic Economics","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130276281","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}