Winter 2004/05 issue of the Expert Witness newsletter (volume 9, issue 4)

Contents: The Reliability of Statistical Evidence Concerning the Impact of Disability by Christopher Bruce In the article Christopher Bruce provides a caution concerning the acceptance of statistical evidence about disability. Dr. Bruce argues that the courts and opposing counsel do not subject certain types of medical opinion to sufficiently strict statistical standards. Specifically, he shows […]

Read More...

Statement of Ethical Principles and Principles of Professional Practice – National Association of Forensic Economics

Economica belongs to an organization of forensic economists known as the National Association of Forensic Economists (NAFE, nafe.net). NAFE has recently published a “Statement of Ethical Principles, and Principles of Professional Practice.” As Economica subscribes to the principles outlined in the NAFE Statement, we have reproduced it here.

Read More...

The Reliability of Statistical Evidence Concerning the Impact of Disability

In the article Christopher Bruce provides a caution concerning the acceptance of statistical evidence about disability. Dr. Bruce argues that the courts and opposing counsel do not subject certain types of medical opinion to sufficiently strict statistical standards. Specifically, he shows that evidence based on: (i) the expert’s “experience,” (ii) the expert’s interpretation of third party statistics, or (iii) the expert’s understanding of published statistical reports may be unreliable. In this article, he provides examples of how statistical evidence may fail to meet the standards expected by the courts; and he offers suggestions about how counsel might respond to these deficiencies.

Read More...

Autumn 2004 issue of the Expert Witness newsletter (volume 9, issue 3)

Contents: Using family background to Predict Educational Attainment in Canada by Carmen Anderson with Christopher Bruce When a minor has suffered a serious injury, it is necessary to predict what the income level of the plaintiff would have been in the absence of that injury. In most cases, this is done by projecting an education […]

Read More...

Using family background to Predict Educational Attainment in Canada

When a minor has suffered a serious injury, it is necessary to predict what the income level of the plaintiff would have been in the absence of that injury. In most cases, this is done by projecting an education level for the plaintiff and using census statistics to project the average income for that education level. This article examines some of the factors that can be used to predict a child’s eventual educational attainment.

Read More...

Summer 2004 issue of the Expert Witness newsletter (volume 9, issue 2)

Contents: The Impact of the “Net Income” Provisions of the Insurance Amendment Act, 2003 by Christopher Bruce The article examines the implications of the changes to section 626.1 of the Insurance Act that were introduced in The Insurance Amendment Act, 2003. Dr. Bruce argues that these changes will: (i) require that income taxes be calculated […]

Read More...

Addendum: Calculating After-Tax Income Using Tables on Diskette

The article is an addendum to Christopher Bruce’s The Impact of the “Net Income” Provisions of the Insurance Amendment Act, 2003. It shows how to download Tables on Diskette (TOD), a software program provided free of charge by the Canada Revenue Agency. It also discusses how law firms can use this calculator to determine income taxes in litigation purposes.

Read More...

The Impact of the “Net Income” Provisions of the Insurance Amendment Act, 2003

The article examines the implications of the changes to section 626.1 of the Insurance Act that were introduced in The Insurance Amendment Act, 2003. Dr. Bruce argues that these changes will: (i) require that income taxes be calculated for every year of both the with-accident and without-accident income streams in all personal injury cases; and (ii) raise the strong possibility that the courts will allow income tax “gross ups” on awards for loss of earnings. He also shows how the income tax gross up is calculated and estimates the overall impact of the revisions on personal injury awards; and he argues that those revisions will have no effect on the manner in which CPP premiums have been treated in Alberta.

Read More...

Spring 2004 issue of the Expert Witness newsletter (volume 9, issue 1)

Contents: Forecasting the Rate of Growth of Real Wages (Productivity) by Christopher Bruce Christopher Bruce summarises the most recent theoretical and empirical evidence concerning one of the most controversial, and poorly-understood, components of the calculation of future earnings – the so-called “productivity factor.” He notes that, although the observed rate of increase in earnings is […]

Read More...

An Alternative Method for Assessing the Value of Housewife Services

The article develops a new and creative method for assessing the value of the housework provided by women in “traditional” marriages; that is, by women who stay at home full time. Professor Allen is an internationally recognised expert on economic aspects of marriage and divorce. He has, for example, written extensively on the impact of no-fault divorce laws. In this article, he argues that a widely-accepted theory of the manner in which individuals choose their spouses can cast light on the implied value that couples place on the value of housework. Specifically, he notes that many theories of spousal choice predict that individuals will choose mates in such a way that the contributions of the two spouses will be equal. If this is the case, then if the husband is working in the labour market, where he earns $50,000 per year, and the wife is working only at home, the value of her contribution to the marriage must also be $50,000.

Read More...

Forecasting the Rate of Growth of Real Wages (Productivity)

Christopher Bruce summarises the most recent theoretical and empirical evidence concerning one of the most controversial, and poorly-understood, components of the calculation of future earnings – the so-called “productivity factor.” He notes that, although the observed rate of increase in earnings is tied to the rate of increase in labour productivity over the very long run, in shorter periods the two rates may differ if there is a significant increase or decrease in the supply of labour. Specifically, he reports that most economists now believe that the slow down in “real” wage growth (the rate of growth in excess of the rate of inflation) in the 1980s and 1990s occurred because of the increase in labour supply that came with the influx of “baby boomers.” That the baby boom is now working its way through the system implies, therefore, that the rate of growth of real wages will increase significantly in the next two decades.

Read More...