Tag Archives: Economics
Economic Analysis in Employment Cases, Part 4

Economic Analysis in Employment Cases, Part 4

The unfortunate reality is that for the average American wage growth has not been keeping up with inflation since approx 1975! This may be referred to as the phenomenon of the falling real wage.

…..forensic economists look to the specific earnings history of the individual, when available, and exercise judgment in determining the earning capacity that should be expected in future years.

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Economic Analysis in Employment Cases, Part 3

Economic Analysis in Employment Cases, Part 3

Worklife

A statistical average of the number of years a person will be working. It factors out the probability of death, sickness, child rearing, and leaving the labor force.

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Economic Expert On Utility Rates

Economic Expert On Utility Rates

Atlanta Gas Light Co.’s rates should be reduced rather than raised, the Georgia Public Service Commission’s Public Interest Advocacy Staff recommended this week. In testimony filed on Thursday, economic expert witness Lane Kollen, called by the PSC staff, suggested a reduction of $15.6 million in AGL’s base rates. The gas utility is asking the commission for a rate increase of $54.2 million.

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Economic Analysis in Employment Case, Part 2

Economic Analysis in Employment Case, Part 2

HISTORIC LOSS (‘Back-pay’)

This period is from time of incident to date of trial. Wage growth rates could be used but no discounting.

Adjustment for promotions, “lost-chance” damages: Backpay may be increasedto take into account promotions the employee was likely to have received. [See Bishop v. Gainer (7th Cir. 2001) 272 F.3d 1009, 1015-1016].

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Deflation–How Is It Harmful To The Economy?

Deflation–How Is It Harmful To The Economy?

Deflation is the decrease in the general price level. This is opposite of inflation. How could lower price levels be harmful to the economy? This is not immediately intuitive to people who are not economists nor finance experts.

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Economic Analysis in Employment Cases, Part 1

Economic Analysis in Employment Cases, Part 1

Worklife is a statistical average of the number of years a person will be working. It factors out the probability of death, sickness, child rearing, and leaving the labor force.

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The Discount Rate ‘Controversy’ – Much Ado About Nothing, Part 3

The Discount Rate ‘Controversy’ – Much Ado About Nothing, Part 3

The support for a (net) discount rate along the very lines I have described previously is clear from the review of the literature given below.

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The Discount Rate ‘Controversy’ – Much Ado About Nothing Part 2

The Discount Rate ‘Controversy’ – Much Ado About Nothing Part 2

I have been attacked by the opposing expert for not using the yield of Treasury Bonds. Using short-term Treasury securities (T-Bills) is justified to remove inflation/interest rate risk that may occur with longer term Treasuries (bonds).

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Why has this been the big deal in California?

Budget deficits are awful for individuals. This means they are spending more than their income. But governments are not individuals. Their purpose of existence or role in the economy is different, have different borrowing and revenue capabilities, and their ‘lives’ never end.

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Stock Market Today

The Dow Jones Industrials fell over 200 points today. This is a typical stock market over-reaction to a not so news- worthy event. The event was our President remarking that commercial banking business should be separate from investment services business.

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