SCHAP DESCRIBES FORENSIC ECONOMICS
Forensic Economics is economics applied to issues that arise in litigation. Examples include calculating money damages in cases of personal injury, wrongful death, wrongful termination of employment, and loss of expected business profit. Economists are also called upon to calculate the equitable distribution of assets in cases of marital dissolution, determine the present cost of life care plans in cases of severe disability, and evaluate economic losses in cases of failure of fiduciary duty. At a theoretical level, forensic economists attempt to determine methods that are appropriate for evaluation in various contexts, giving appropriate consideration to the limitations of available data. Practicing forensic economists apply the various methods of evaluation, as appropriate, to actual cases of dispute. Economic reports often contribute to case settlement, especially when the practicing forensic economists involved provide estimates that are similar in magnitude. When a case fails to settle, either because the economic experts disagree or because of disagreements on other issues (e.g., liability, medical opinion or vocational opinion), the practicing forensic economist has to be prepared to explain and defend his or her professional opinion in open court or at a mediation/arbitration hearing.